How Does Complexity Affect the Relationship Between Supply Chain Integration and Firm Performance?

Abstract

Supply chain integration has become a major challenge for companies in the current context. Information sharing, and collaboration improve supply chain flexibility, tractability, and efficiency. Several studies have demonstrated, the positive and the significant relationship between supply chain integration and firm performance. Other studies have focused on the factors that affect this relationship. Supply chain complexity is a contingency factor that affects this relationship. Based on the literature review and through a confrontational approach, the authors propose a conceptual model to show how the complexity of supply chain affects the benefit of integration. Propositions are posited with suggestions for further research. Authors suggest that there are three dimensions of supply chain complexity which moderate the effect of supply chain integration on the firm performance: upstream, internal and downstream complexity; that there is a taxonomy of firm's group based on their level of each dimension of complexity and the effect of integration differs from one group to another.