Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration

Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in s...

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Published in	International journal of production economics Vol. 135; no. 1; pp. 514 - 522
Main Authors	Prajogo, Daniel, Olhager, Jan
Format	Journal Article
Language	English
Published	Amsterdam Elsevier B.V 2012 Elsevier Sequoia S.A
Subjects	Alliances Drivers Economics Information integration Information systems Information technology Logistics Logistics integration Operations research Studies Suppliers Supply chain integration Supply chain management Supply chains Vendor supplier relations Australia Logistics integration Information integration Supply chain integration Performance
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Abstract	Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration. ► Strategic supplier relationship has a positive effect on information integration. ► Information integration consists of information technology and information sharing. ► Increasing information integration has a positive effect on material integration. ► Material integration has a positive effect on operational performance. ► Strategic supplier relationship has direct and indirect effects on performance.
AbstractList	Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration. Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration. ► Strategic supplier relationship has a positive effect on information integration. ► Information integration consists of information technology and information sharing. ► Increasing information integration has a positive effect on material integration. ► Material integration has a positive effect on operational performance. ► Strategic supplier relationship has direct and indirect effects on performance. Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration. [PUBLICATION ABSTRACT]
Author	Olhager, Jan Prajogo, Daniel
Author_xml	– sequence: 1 givenname: Daniel surname: Prajogo fullname: Prajogo, Daniel email: daniel.prajogo@buseco.monash.edu.au organization: Department of Management, Monash University, PO Box 197, VIC 3141, Australia – sequence: 2 givenname: Jan surname: Olhager fullname: Olhager, Jan email: jan.olhager@liu.se organization: Department of Management and Engineering, Linkoping University, Sweden
BackLink	https://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-71818$$DView record from Swedish Publication Index
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Snippet	Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such...
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SubjectTerms	Alliances Drivers Economics Information integration Information systems Information technology Logistics Logistics integration Operations research Studies Suppliers Supply chain integration Supply chain management Supply chains Vendor supplier relations
Title	Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration
URI	https://dx.doi.org/10.1016/j.ijpe.2011.09.001 https://www.proquest.com/docview/901850581/abstract/ https://search.proquest.com/docview/1671279064 https://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-71818
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