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THE INTERACTION OF INTERNAL AND DOWNSTREAM INTEGRATION AND ITS ASSOCIATION WITH PERFORMANCE
Author(s) -
Germain Richard,
Iyer Karthik N. S.
Publication year - 2006
Publication title -
journal of business logistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.611
H-Index - 79
eISSN - 2158-1592
pISSN - 0735-3766
DOI - 10.1002/j.2158-1592.2006.tb00216.x
Subject(s) - downstream (manufacturing) , business , affect (linguistics) , industrial organization , supply chain , vertical integration , process management , operations management , marketing , economics , psychology , communication
The authors study how internal and downstream integration and their interaction affect logistical and financial performance within the firm. The results indicate that internal and downstream integration and their interaction affect logistical performance — that is, the higher the internal integration, the stronger the relationship of downstream integration with logistical performance. The results also suggest that logistical performance directly predicts financial performance. The results suggest that superior performance derives from the firm simultaneously integrating functions, decision‐making, and processes both within the firm and across the supply chain.