A reductionistic or holistic approach? The impacts of fit patterns of supplier and customer integration on company and supply chain performance

Abstract

The increasing prevalence and complexity of supply chain integration raise a question on how to concurrently adopt different dimensions of integration rather than a singular dimension. While extant literature extensively examined the isolated impacts of supplier and customer integration on performance, the exploration of conceptualizing and evaluating the fit between supplier and customer integration remains an issue under active investigation. Drawing on the dynamic capability view, this study conceptualizes and operationalizes fit patterns (e.g., fit as moderation and matching) of supplier and customer integration to understand the synergistic effects of supplier and customer integration on both company and supply chain performance and establish dynamic capabilities containing fit sensing, seizing, and transformation. Using the survey data collected from 824 firms from China Mainland, Hong Kong, and Taiwan, the study reveals distinct effects of two fit patterns on company and supply chain performance. Fit as moderation is positively related to both company and supply chain performance, while fit as matching is negatively related to company performance and is not significantly related to supply chain performance. This study offers profound insights into how to adopt supplier and customer integration concurrently in an efficient and effective manner and provides guidelines for practitioners.