The moderating role of barriers on the relationship between drivers to supply chain integration and firm performance

Implementation of supply chain management techniques requires thorough integration of processes between supply chain partners in all functional areas, including sourcing, manufacturing, and distribution. Yet insufficient attention has been given to the means by which firms achieve high levels of integration. This study aims to examine moderators impacting supply chain integration barriers.

Supply chain integration drivers and moderating barriers to supply chain integration were identified by extensive search of the literature, and in‐depth interviews with supply chain managers. A survey was developed to measure levels of supply chain integration drivers, barriers to supply chain integration, and firm performance. The measures were validated using EFA, and the responses analyzed using multiple regression.

The study finds that firms with a desire to improve, operating in a challenging competitive environment typically experience high levels of performance. Further, barriers to supply chain integration can actually increase the firm's ability to achieve firm performance as the firm is required to make greater efforts to overcome those barriers and develop effective supply chain linkages.

This study answers a call for additional research into factors that enable and inhibit supply chain integration, and offers an empirical analysis of the moderating effect of supply chain integration barriers on the relationship between integration drivers and firm performance.