An investigation of antecedents and consequences of supplier integration: a study in Indian context

Abstract

Purpose The purpose of this study is to investigate the antecedents and outcomes of supplier integration. Based on an extensive literature review, the study has proposed a research model, which includes both the antecedents and consequences of supplier integration. The study has included contextual factors, namely, trust, relationship commitment to supplier and information technology (IT) for supplier as antecedents to supplier integration. The supplier-related performance outcome and financial performance of manufacturing firm has been modeled as outcome variables. Design/methodology/approach The proposed research model was tested on a sample of 166 manufacturing firms from India using structural equation modeling. Findings The results suggested that trust, relationship commitment to supplier and IT for supplier have a positive impact on supplier integration. The results further confirmed the positive impact of supplier integration on supplier-related performance outcome and supplier-related performance outcome on financial performance of the firm. Originality/value The study argues that the contextual factors (trust, relationship commitment to supplier and IT for supplier will facilitate the integration between manufacturing firms and their suppliers). Further, the study argues that the supplier integration would lead to specific performance outcome resulting from a high level of integration between manufacturer and their key suppliers and labeled it as supplier-related performance outcome (SRPO). The study conceptualizes and develops scale to measure SRPO and investigates the impact of SRPO on the financial performance of the manufacturing firm.