Abstract
In recent years, firms have been using their supply chain integration (SCI) as a competitive weapon in the intensive, globalised competitive arena. The contingent perspective in supply chain management maintains that it is necessary to observe the interaction between SCI practices and supply chain justice. A critical issue to be resolved is whether this fit leads to synergistic and complementary effects on supply chain performance. In order to contribute to this research problem, we analysed supply chain justice instances in order to determine the importance of supply chain justice, as well as highlights complementary role in SCI and its influences on supply chain performance. A conceptual framework has been developed and five propositions established to verify the contents of a theoretical study. Accordingly, balancing the adoption of SCI practices and supply chain justice will lead to the generation of greater benefits relative to the effect of both independent driving forces on supply chain performance. Furthermore, the proposed framework has been analysed in order to examine its applicability in the South African context. The study thereby suggests the empirical research guidelines and the paper concludes with a discussion of future research.
Highlights
With the fierce competition in the market companies have been required to participate in supply chain integration (SCI)
We argue that once both foundational components are in place, potential synergies between SCI practices and supply chain justice as complementary elements can be exploited in order to gain additional performance
We have proposed a theoretical framework to explain the complementary effects of SCI practices and supply chain justice on firms’ supply chain performance (SCP)
Summary
With the fierce competition in the market companies have been required to participate in SCI. This concept has gained much attention as a result of changing manufacturing and supply chain strategies (Cousins & Menguc, 2006). The firm’s supply chain should be agile, adaptable and aligned to meet the fast-changing requirements of competitive markets (Lee, 2004). What is required is the articulation of a closely integrated relationship between manufacturers and their supply chain partners (Armistead & Mapes, 1993). SCI refers to the degree to which a manufacturer strategically collaborates with its supply chain partners and collaboratively manages intraorganisational and interorganisational processes. The goal is to achieve effective and efficient flows of products and services, information, capital and decisions, thereby providing maximum value for the customer (Frohlich & Westbrook, 2001), while, at the same time, making contributions to supply chain performance (Narasimhan & Kim, 2002) and the firm’s operational performance (Frohlich & Westbrook, 2001)
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