Abstract

This study develops a model to examine whether inter-organizational compatibility has cross-boundary effects on virtual integration (system integration and supply chain integration), thus leading to better supply chain performance. We empirically tested the research model using data collected from senior managers of 116 manufacturing firms in South Korea. The results show that strategic compatibility, long term orientation, technical compatibility can benefit system integration, supply chain integration, and supply chain performance. Our findings suggest that the value of inter-organizational compatibility can truly have a boundary-spanning effect when supply chain partners attempt to integrate their systems and processes.

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