Empirical Evaluation of an Integrated Supply Chain Model for Small and Medium Sized Firms

Abstract

With increased global competitive pressures, companies operating in these competitive environments are not only looking to their distribution division to save money, but also to generate competitive advantages. One technique is the integrated supply chain. However, this process has not met with success for all companies, leading some managers to consider the appropriateness of an integrated supply chain. This dearth of success could be attributed to the lack of scholarship to guide managers in their efforts to formulate and then implement their integrated supply chain strategies. In an effort to fill this gap, our paper draws on resource dependency theory and the realities of ever-increasing information technology sophistication as enablers of successful supply chain integration,resulting in the creation of our model to guide managers throughout this process. Through a Web-based survey, 329 responses were collected and analyzed through a structural equation modeling technique using LISREL to confirm the relationships in the model.