Integrating supply chain infrastructure and process to create joint value

Abstract

PurposeThe purpose of this paper is to explore the structural and process integration mechanisms used by firms to form a hybrid mode of supply chain governance referred to as supply chain value integration (SCVI).Design/methodology/approachThe authors employ a multi‐method approach, conducting depth interviews following the grand touring technique to develop the model, and survey methodology to test the model using partial least squares approach for structural path estimation.FindingsSCVI is a multi‐dimensional concept comprised of two second‐order constructs, SCVI infrastructure and SCVI process, each comprised of three first‐order constructs, that lead to joint value creation and improved supply chain performance.Practical implicationsDependent suppliers striving to compete on value creation can adopt bonding behavior by establishing an integrative infrastructure comprised of people, technology, and knowledge components, which balances the level of dependence and motivates the customer to engage in integrative processes.Originality/valueThe authors expand on previous models of integration by developing and testing a comprehensive multi‐dimensional theory of SCVI that explains the relationships between resource dependency theory, resource‐based view of the firm, and relational exchange theory.