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Internal Supply Chain Integration: Effective Integration Strategies in the Global Context
Abstract
Supply chain relationships and subsequent supply chain integration have received significant attention among both academics and practitioners over several decades. The majority of the prior research has focused on assessing the relationships between the focal manufacturing firm and its suppliers and/or customers. Recent research, however, suggests that successful management of external relationships requires effective integration of the internal supply chain within the focal firm. In this chapter, we focus on internal supply chain integration. The author starts with the assumption that integration is an investment and that the importance of it is context-dependent. By examining data collected in 210 plants in eight countries, the author exploratively examine internal supply chain integration strategies; using cluster analysis, they classify the plants into four groups based on their use of various individual integration mechanisms. In addition, the author assess the use of the four integration strategies under various task contexts and across countries.
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