SUPPLY CHAIN PROCESS INTEGRATION: A THEORETICAL FRAMEWORK.

SUPPLY chain management; TRANSACTION cost theory of the firm; RESOURCE-based theory of the firm; INVENTORY theory; INDUSTRIAL procurement; MATERIALS management; BUSINESS logistics

The current study was undertaken to further understanding of supply chain process integration. It is suggested that supply chain integration, the practice of realigning firms' operating structures, should be understood from an internal-external perspective and a process view. Drawing upon four theories--Strategy-Structure-Performance framework, the resource based view of the firm, transaction cost economics, and social network analysis--and combining industry inputs, a theoretical framework of supply chain process integration is developed. It is argued that a firm's strategic priorities are key factors of supply chain process integration. Superior performance is likely to be achieved when necessary supply chain capabilities are developed through supply chain process integration. [ABSTRACT FROM AUTHOR]

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