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Managing Differentiation‐Integration Duality in Supply Chain Integration *
Author(s) -
Terjesen Siri,
Patel Pankaj C.,
Sanders Nada R.
Publication year - 2012
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.2011.00345.x
Subject(s) - contingency theory , contingency , supply chain , industrial organization , duality (order theory) , business , supply chain management , modularity (biology) , dual (grammatical number) , process management , computer science , marketing , knowledge management , mathematics , art , linguistics , philosophy , literature , discrete mathematics , biology , genetics
Existing research focuses on the positive returns to operational performance of firms’ supply chain integration (SCI) with suppliers, buyers, and customers. We draw on differentiation‐integration duality and contingency theory to suggest that manufacturing firms should seek to achieve both integration through supply chain coordination activities and differentiation through modularity‐based manufacturing practices (MBMP). Using a sample of 261 manufacturing firms, we identify an inverse U‐shaped relationship between SCI and operational performance. Furthermore, we find support for the importance of differentiation‐integration duality as a fit between high levels of SCI and high levels of MBMP results in enhanced operational performance. We find support for a contingency perspective as fit is especially critical at higher levels of environmental uncertainty. Implications for theory, practice, and further research are suggested.