The impact of product complexity and variety on supply chain integration

Abstract

PurposeThe purpose of this paper is to examine the antecedents of supply chain integration (SCI) at the product level. More specifically, it aims to show the relationship between product-level characteristics (i.e. product complexity and product variety) and different dimensions of SCI (i.e. internal, supplier and customer integration).Design/methodology/approachA survey-based research design is developed to measure different dimensions of SCI, product complexity and product variety. The authors use structural equation modelling to test the related hypotheses.FindingsThis research shows that internal integration is an enabler to supplier and customer integration. The results also show that under high product complexity, firms tend to implement internal and supplier integration, while product complexity does not have a direct impact on customer integration. Product variety is confirmed to be positively related to all dimensions of SCI.Originality/valueThis paper contributes to the SCI literature by first, providing empirical evidence which supports the study of the product design-supply chain interface; and second, exploring the relationships between product complexity, variety and internal, supplier and customer integration based on a governance view.