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To cite this article: Rafaela Alfalla-Luque , Carmen Medina-Lopez & Prasanta Kumar Dey (2013) Supply chain integration
framework using literature review, Production Planning & Control: The Management of Operations, 24:8-9, 800-817, DOI:
10.1080/09537287.2012.666870
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Production Planning & Control, 2013
Vol. 24, Nos. 8–9, \ 8 00 –817, http://dx.doi.org/10.1080/09537287.2012.666870
Definitions and measures of supply chain integration (SCI) are diverse. More empirical research, with clear
definition and appropriate measures are needed. The purpose of this article is to identify dimensions and
variables for SCI and develop an integrated framework to facilitate this. A literature review of the relevant
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academic papers in international journals in Logistics, Supply Chain Management and Operations Management
for the period 1995–2009 has been undertaken. This study reveals that information integration, coordination and
resource sharing and organisational relationship linkage are three major dimensions for SCI. The proposed
framework helps integrate both upstream suppliers and downstream customers with the focal organisation.
It also allows measuring SCI using both qualitative and quantitative approach. This study encourages researchers
and practitioners to identify dimensions and variables for SCI and analyses how it affects the overall supply chain
(SC) performance in terms of efficiency and responsiveness. Although there is extensive research in the area of
SCI, a comprehensive and integrated approach is missing. This study bridges the gap by developing a framework
for measuring SCI, which enables any organisation to identify critical success factors for integrating their SC,
measures the degree of integration qualitatively and quantitatively and suggest improvement measures.
Keywords: supply chain management; supply chain integration; information integration; coordination;
organisational relationship
Vallet Bellmunt 2010). Analysis of these papers reveals delivery to the customer and manage information
that great varieties of dimensions and variables and a systems necessary to monitor all of these activities.
broad spectrum of scales have been used for measure- According to Lambert and Cooper (2000), SCM is the
ments of SCI. Many authors develop new models with integration of key business processes from end user
new constructs and new measurement scales. While a through original suppliers that provides products,
few authors consider SCI through unidimensional services and information that add value for customers
constructs (e.g. Dong et al. 2001, Cousins and and other stakeholders. Similar definitions of SCM
Menguc 2006, Sezen 2008), others use multi-dimen- have been provided by Handfield and Nichols (2002)
sional constructs for measuring SCI (e.g. Bagchi et al. or Cooper et al. (1997). Such definitions emphasise the
2005a, Koufteros et al. 2007, Kim 2009, Vijayasarathy importance of the integration of flow of products,
2010). Very few papers employ the same SCI dimen- services, funds and information across firms for an
sions and variables for specific region, country or effective SCM.
industry. There is, therefore, a lack of clear definitions A few authors give specific definition of SCI.
and understanding of the concept of SCI (Pagell 2004, Romano (2003) describes the concept of integration as
Fabbe-Costes and Jahre 2008). a mechanism to support business processes across the
In the above view, it is necessary to take a step back
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SCI needs both intra- and inter-company integra- maintain that even quality management can be con-
tion across the entire SC in order to work as a single sidered as a key SC business process. SC business
entity (Poirier and Bauer 2001, Pagell 2004). However, process integration involves collaboration between
organisations are not always successful in achieving buyers and suppliers, joint product development,
higher level of integration within their SCs. Many common systems and shared information. Some
organisations have only achieved the first tier back- authors have analysed SCI using this approach. For
ward or forward integration (Mejza and Wisner 2001, example, Bagchi et al. (2005a) analyse the relative
Fawcett and Magnan 2002, Bessant et al. 2003). Some degree of the involvement of key suppliers and
studies show that one of the reasons that hinders the customers in decision making in new product devel-
achievement of a high-level external integration is low opment, inventory management, procurement, pro-
level of internal integration (Gimenez and Ventura duction and distribution. Ragatz et al. (1997) and
2005). Intra-company integration is the starting point Koufteros et al. (2007) investigate the consequences of
for broader integration across the SC (Simchi-Levi supplier integration in product development activities.
et al. 2000, Fawcett and Magnan 2002, Harrison and Finally, some papers focus on the integration of
Van Hoek 2005, Sridharan et al. 2005; Cagliano et al. information/data and physical/materials flows. For
2006). One of the major obstacles to fully integrate example, Cagliano et al. (2006) investigate the relation-
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materials and information flows across the SC is the ship between the integration of information flows and
inadequacy of the internal management systems of the the integration of physical flows and two manufacturing
individual firms (Mentzer 2004). In order to achieve improvement programmes (lean production and enter-
intra-organisational integration, coordination between prise resource planning systems). Other studies analyse
functions is critical (Fawcett and Magnan 2002). the information flows integration: Van Hoek (1998),
Consequently, SCI aims to break down the organisa- Nguyen and Harrison (2004), Nurmilaakso and
tional boundaries between functions and barriers Kotinurmi (2004), Bagchi et al. (2005a), Stevenson
between organisations. and Hendry (2007) or Li et al. (2009).
Although the internal and external integration is The previous approaches on SCI are not exclusive.
the key element for SCI, there is much emphasis on Usually, at least customer and supplier integration (not
customer and supplier integration only, ignoring the always internal integration) is used when the research
important central link of internal integration (Flynn focus on process or physical/information flow integra-
et al. 2010). For example, Fawcett and Magnan (2002) tion. For example, Narasimhan and Das (2001)
classify three types of integration: backward integra- distinguish between customer integration, information
tion, forward integration and complete forward and integration, logistics and distribution integration and
backward integration. Similarly, Frohlich and supplier integration.
Westbrook (2001) use this perspective to define arcs There are different approaches to measure SCI.
of integration: inward-facing, periphery-facing, sup- The dimensions and variables used for SCI in the
plier-facing, customer-facing and outward-facing. previous researches have a wide variety. It is clear from
Other papers have adopted a wider focus and have previous research that SCI suffers from a lack of clarity
considered both types of integration (internal and in its definitions, dimensions and variables.
external). For example, Narasimhan and Kim (2002) Additionally, the concepts of SCI are incomplete as it
indicate three levels of integration – company integra- seldom considers important central link of internal
tion with suppliers, company integration with cus- integration (Flynn et al. 2010). Even, some authors
tomers and internal integration. Flynn et al. (2010) comment that SCI is in its infancy (Devaraj et al. 2007,
indicate three SCI dimensions: customer, supplier and Arshinder et al. 2008, Flynn et al. 2010). Researchers
internal integration. find significant differences in the dimensions and
The second approach comprises of SCI from variables used to measure SC integration (Ho et al.
process integration perspective. Lambert and Cooper 2002, Van der Vaart and Van Donk 2008). Therefore,
(2000) propose that, for successful implementation of it becomes necessary to conduct a literature review to
SC, all firms within an SC must overcome their own identify dimensions and variables and develop a
functional silos and adopt a process approach. The key conceptual framework for SCI.
processes typically include customer relationship man-
agement, customer service management, demand man-
agement, order fulfilment, manufacturing flow
management, supplier relationship management, prod- 3. Methodology
uct development and commercialisation and returns Following the methodology successfully used in previ-
management. Moreover, Romano and Vinelli (2001) ous papers (Gunasekaran and Ngai 2005, Van der
Production Planning & Control 803
Vaart and Van Donk 2008, Barragán Ocaña 2009, journals and methodology (empirical or conceptual). A
Fabbe-Costes et al. 2009), this study reviews prior wide majority were empirical research based on survey.
research publications. A critical review of the literature A systematic content analysis of 36 papers was
(Medina-Lopez et al. 2010) on SCI was undertaken in undertaken for identifying dimensions and variables
relevant Operations Management (OM) and Supply for SCI and developing the conceptual SCI framework.
Chain/Logistics Management journals in order to Each of the selected papers was thoroughly studied and
identify dimensions and variables of SCI. The the SCI dimensions and variables were identified and
number of literature on SCM is growing rapidly analysed. While gathering information on dimensions
(Alfalla-Luque and Medina-Lopez 2009). Therefore, and variables of SCI from prior research, the comple-
it is very important to focus on only the papers that mentary papers of the authors of above 36 papers have
deal with SCI. The objective of this literature review is also been looked into (e.g. Sahin and Robinson 2002,
not to make a classic synthesis of what has been Bagchi et al. 2005b).
published on SCI, but to define SCI clearly and to
identify dimensions and variables for integration
across the SC with the purpose of developing a 4. SC integration
conceptual framework for integration.
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Number of
Journal selected papers References Methodology
Interfaces –
International Journal of 2 Bagchi et al. (2005a) E (survey)
Logistic Management Gimenez and Ventura (2003) E (survey)
International Journal of 4 Cagliano et al. (2006) E (survey)
Operations and Production Gimenez and Ventura (2005) E (survey)
Management Tan et al. (2002) E (survey)
International Journal of 2 Vachon and Klassen (2006) E (survey)
Physical Distribution & Mollenkopf and Dapiran (2005) E (survey)
Logistics Management Hsu et al. (2008) E (survey)
International Journal of 2 Kim (2009) E (survey)
Production Economics Wong and Boon-itt (2008) E (case studies)
International Journal of 1 Vachon and Klassen (2007) E (survey)
Production Research Germain and Iyer (2006) E (survey)
Journal of Business Logistics 4 Rodrigues et al. (2004) E (survey)
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need for establishing consensus constructs for SCI in communication across the SC, collaboration and
order to pursue further research. shared decision-making with network partners, collab-
Few authors have considered SCI through multi- oration leading to risk, cost and gain sharing (opera-
dimensional constructs. Different dimensions are used tional and strategic collaboration), sharing of skills,
to characterise the SCI concept. Sahin and Robinson ideas and institutional culture and organisation. The
(2002, 2005) proposed the degree of information SCI dimensions identified by Lee (2000) and Bagchi
sharing and decision-making coordination as two et al. (2005b) are quite similar. The first two dimen-
major dimensions of SCI at the operational level. sions are similar and the third dimension indicated by
Lee (2000) outlined three dimensions of SCI: informa- Lee (2000) matches with the last three, as indicated by
tion integration (II), coordination and resource sharing Bagchi et al. (2005b).
(CRS) and organisational relationship linkage (ORL). The most common approaches used are focused on
Bagchi et al. (2005b) categorised SCI into five inter- inter- and intra-company integration (see Tables 2
related dimensions: information sharing and and 3). Although internal integration is a pre-requisite
Production Planning & Control 805
Bagchi et al. (2005a, b) S/C Information sharing and communication across the SC
Collaboration and shared decision-making with network partners
Collaboration leading to risk, cost, and gain sharing or incentive alignment
Sharing of skills, ideas and institutional culture (operational and
strategic collaboration)
Organisation
Cagliano et al. (2006) S Integration of information flows
Integration of physical flows
Das et al. (2006) S/I External integration practices (supplier integration)
Internal integration practices (supplier integration)
Devaraj et al. (2007) S/C Supplier production information integration
Customer production information integration
Droge et al. (2004) S/I/C External strategic design integration
Internal design-process integration
Germain and Iyer (2006) I/C Internal integration
Downstream integration
Gimenez and Ventura (2003) S/I/C Internal integration
External integration
Gimenez and Ventura (2005) S/I/C Internal integration: logistics production
Internal integration: logistics marketing
External integration
Hsu et al. (2008) S/C Information sharing
Buyer–supplier relationship
Kim (2009) S/I/C Company’s integration with suppliers
Cross-functional integration within a company
Company’s integration with customers
Koufteros et al. (2007) S Black-box supplier integration
Gray-box supplier integration
Kulp et al. (2004) S/C Information sharing
Collaboration
Lee (2000) S/I/C Information integration
Coordination and resource sharing
Organisational relationship linkages
Mollenkopf and Dapiran (2005) S/I/C Customer integration
Internal integration
Material/service supplier integration
Technology and planning integration
Relationship integration
(continued )
806 R. Alfalla-Luque et al.
Table 3. Continued.
to achieve external integration, several papers focus with SCI dimensions and variables that could be used
only on external integration with suppliers (e.g. across industries and regions to achieve comparable
Cagliano et al. 2006, Cousins and Menguc 2006, Das results. Based on the prior research on SCI constructs,
et al. 2006, Koufteros et al. 2007) or with suppliers and a conceptual framework has been developed. The
customers (e.g. Dong et al. 2001, Frohlich and evidences show that SCI is possible through multi-
Westbrook 2001, Bagchi et al. 2005a, Vachon and dimensional constructs. The SCI involves both internal
Klassen 2006, 2007, Devaraj et al. 2007, Quesada et al. and external aspects of business. The key to SCI is to
2008, Sezen 2008). Only one selected paper differenti- develop uninterrupted link with upstream suppliers
ates between integration of information flows and and downstream customers along with total functional
physical flows (Cagliano et al. 2006). Others focus on synergy internally. Therefore, integration could be
the integration of production information flows of achieved through three major interrelated activities –
suppliers and customers (Devaraj et al. 2007). customer relationship management, internal SCM and
Table 4 summarises the characteristic of the supplier relationship management. In other words, the
selected papers. It shows the predominance of the role of SCM is to integrate both customers and
concept of SCI as a multi-dimensional construct suppliers with the client’s business processes. In the
(69.4%) and that the research on both external and above view, as Lee (2000) proposes, information
internal integration (47.2%) is the lowest. Most of the integration, CRS and ORL have been considered as
papers focus only on supplier and/or customer SCI dimensions in this study. Figure 1 shows three-tier
integration. SCI framework. The proposed framework helps
researchers understand every dimension and variable
for SCI and allow practitioners to measure the level of
integration and identify measures for improvement.
4.2. A conceptual SCI framework According to Lee (2000), information integration
The above paragraphs clearly depict the lack of refers to the sharing of information internally and
consensus on SCI dimensions and variables and the between the members of the SC, including demand
need for the development of conceptual framework information, inventory status, promotion plans, sales
Production Planning & Control 807
Table 4. Classification of SCI selected paper. and adopt a strategy of process integration. When the
coordination between the members of the SC is not
Number Percentage sufficient, some imbalances could exist between the
of papers (%)
capacity and the production planning. Therefore, the
Mono-dimensional construct 11 30.6 work realignment is essential. The logistic aspects are
Multi-dimensional construct 25 69.4 very important too. Reorganisation of the outsourcing,
Supplier integration 36 100.0 packaging customisation/standardisation, agreements
Customer integration 30 83.3
on delivery frequency and common use of logistical
Internal integration 19 52.8
Supplier and customer integration 29 80.6 equipment have a high impact in cost, quality and
External and internal integration 17 47.2 speed. However, not all suppliers or customers are
going to have the same level of integration, as this will
Total 36 –
depend on the mutual interest of the companies
(Lambert et al. 1999, Bagchi and Skjoett-Larsen 2002).
A clear strategic vision is needed in the ORL in
forecasts and production schedules. The members also order to achieve common visions and objectives, share
risk, reduce cost, promote rewards, develop skills and
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together or separately helps integrate entire SC. All the essence of SCI (Van der Vaart and Van Donk 2008).
functional synergies will also ensure SCI. The wide variety of dimensions and variables revealed
Intra-organisational SCI is possible through synergic in previous research for defining SCI makes it difficult
decisions in all the three levels of decision-making – to compare their findings. Very few researchers
strategic, tactical and planning. employ the same dimensions and variables for SCI.
Additionally, the proposed framework is capable to Therefore, a review of existing literature is essential to
measure and benchmark the level of SCI. The steps create a reference framework on which future research
that could be undertaken in order to measure SCI are could be based for the consolidation of the knowledge
selecting an SC, identifying the relevant variables for in SCI. This would allow studying SCI across indus-
SCI from the list of the variables, as shown in Table 5, tries and regions, which will enable benchmarking
deriving proxies for each variables, determining the exercise on SC effectiveness. It is necessary to reach
importance of SCI variables, gathering information on into consensus on the definition of SCI and its
SCI against each proxy through interviewing the key dimensions and variables in order to build SCI
stakeholders, deriving strengths and weaknesses of SC theory. Several examples of conceptual discrepancies
and suggesting improvement measures. Similar steps in SCI constructs have been pointed out in this
could be adopted for benchmarking SCI of participat- research along with descriptions of mono and multi-
ing supply networks. dimensional constructs for SCI (Tables 2 and 3).
Previous SCI researches indicate varied dimensions
and variables. For example, Kannan and Tan (2005)
created a model with four constructs, namely JIT,
TQM, Performance and SCM. The SCM construct is
5. Discussion sub-divided into SCI, SC coordination, SC develop-
SCI is relatively new as an area of research (Flynn et al. ment and information sharing. However, Lee (2000)
2010). There is little consensus on how to capture the and Bagchi et al. (2005a, b) considered SC
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II II1: Information S/I/C Lee (2000), Dong et al. (2001), Frohlich and Westbrook To share information across
sharing (2001), Stank et al. (2001), Narasimhan and Kim (2002), the various functional
Kulp et al. (2004), Rodrigues et al. (2004), Bagchi et al. departments of the organi-
(2005a, b), Briscoe and Dainty (2005), Gimenez and sation and with supplier and
Ventura (2003, 2005), Mollenkopf and Dapiran (2005), customer organisations to
Sahin and Robinson (2002, 2005), Sanders and Premus improve decision-making
(2005), Cagliano et al. (2006), Das et al. (2006), Germain
and Iyer (2006), Devaraj et al. (2007), Swink et al. (2007),
Vachon and Klassen (2006, 2007), Hsu et al. (2008),
Quesada et al. (2008), Sezen (2008), Wong and Boon-itt
(2008) and Kim (2009)
II2: Information S/I/C Stock et al. (2000), Dong et al. (2001), Stank et al. (2001), To make compatible the
technology Tan et al. (2002), Droge et al. (2004), Bagchi et al. (2005a, information systems so as to
integration b), Kannan and Tan (2005), Mollenkopf and Dapiran allow access to information
(2005), Sanders and Premus (2005), Hsu et al. (2008), Sezen concerning the activity of
(2008), Wong and Boon-itt (2008) and Kim (2009) the company from different
departments and companies
that make up the SC
II3: Collaborative S/I/C Lee (2000), Frohlich and Westbrook (2001), Narasimhan and To make available to the
planning Kim (2002), Rodrigues et al. (2004), Gimenez and Ventura various companies with
(2003, 2005), Mollenkopf and Dapiran (2005), Sanders information that allows joint
(2005), Sanders and Premus (2005), Cagliano et al. (2006), planning that takes into
Cousins and Menguc (2006), Das et al. (2006), Germain and account the constraints of
Iyer (2006), Devaraj et al. (2007), Vachon and Klassen the companies involved and
(2006, 2007), Hsu et al. (2008), Quesada et al. (2008) and seek to improve the
Sezen (2008) planning process of
Production Planning & Control
comprehensive SC
II4: Joint demand S/I/C Lee (2000), Stock et al. (2000), Narasimhan and Kim (2002), To have real-time information
forecasts Kulp et al. (2004), Mollenkopf and Dapiran (2005), directly from the end cus-
Cagliano et al. (2006), Das et al. (2006), Germain and Iyer tomer to make a common
(2006), Devaraj et al. (2007), Swink et al (2007), Hsu et al. demand forecast in order to
(2008), Sezen (2008), Wong and Boon-itt (2008) and Kim avoid disruptions
(2009)
II5: Joint S/I/C Lee (2000), Stock et al. (2000), Frohlich and Westbrook To have sufficient information
replenishment (2001), Kulp et al. (2004), Germain and Iyer (2006), Devaraj to perform the procurement
forecasts et al. (2007), Sezen (2008) and Kim (2009) activities that meet real
needs
CRS CRS1: Shared S/I/C Lee (2000), Bagchi et al. (2005a, b), Gimenez and Ventura To involve to the SC members
decision- (2003, 2005), Sahin and Robinson (2002, 2005), Das et al. in decision making and to
making (2006), Germain and Iyer (2006) and Kim (2009) delegate to the member with
the best negotiating position
to lead the relevant decision
making
809
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CRS2: S/I/C Stock et al. (2000), Stank et al. (2001), Tan et al. (2002), To realise of joint actions to
810
Cooperation Rodrigues et al. (2004), Bagchi et al. (2005a, b), Kannan achieve the same end
and Tan (2005), Sahin and Robinson (2002, 2005), Germain
and Iyer (2006), Koufteros et al. (2007), Vachon and
Klassen (2006, 2007) and Hsu et al. (2008)
CRS3: Work S/I/C Lee (2000) and Quesada et al. (2008) To plan the workload in a
realignment balanced way among the
links in the SC
CRS4: S/C Lee (2000), Frohlich and Westbrook (2001), Gimenez and To search for an optimal sub-
Reorganisation Ventura (2003, 2005) and Quesada et al. (2008) contracting for the entire
of outsourcing. SC, with special emphasis on
Common use of logistics providers
third-party
logistics
CRS5: Packaging S/C Frohlich and Westbrook (2001) and Quesada et al. (2008) To design and joint develop-
customisation/ ment of packaging to facili-
standardisation tate handling and transport,
reduce costs and ensure
quality
CRS6: S/C Frohlich and Westbrook (2001), Cagliano et al. (2006) and To search optimisation in the
Agreements on Quesada et al. (2008) procurement and distribu-
delivery tion of materials throughout
frequency the SC
CRS7: Common S/C Frohlich and Westbrook (2001) and Quesada et al. (2008) To use of containers, packag-
use of logistical ing and transportation
equipment/ common to facilitate han-
containers dling operations, loading
and unloading
CRS8: Process S/I/C Stank et al. (2001), Tan et al. (2002), Droge et al. (2004), To use a process approach that
R. Alfalla-Luque et al.
integration Rodrigues et al. (2004), Bagchi et al. (2005a, b), Kannan allows the direct intercon-
and Tan (2005), Sanders and Premus (2005), Cagliano et al. nection between depart-
(2006), Cousins and Menguc (2006), Das et al. (2006), ments and companies and
Koufteros et al. (2007), Swink et al. (2007), Vachon and avoids duplication
Klassen (2006, 2007), Hsu et al. (2008), Quesada et al.
(2008), Wong and Boon-itt (2008) and Kim (2009)
ORL ORL1: Design S/I/C Lee (2000), Tan et al. (2002), Kannan and Tan (2005), Das To communicate using active
and maintain- et al. (2006), Germain and Iyer (2006), Swink et al. (2007), communication channels
ing of commu- Hsu et al. (2008) and Sezen (2008) with members of the SC
nication
channels
ORL2: Laying S/I/C Lee (2000), Stank et al. (2001), Bagchi et al. (2005a, b), Swink To establish common perfor-
down perfor- et al. (2007) and Hsu et al. (2008) mance indicators and
mance aligned/consensus that
measures reveal the evolution from
the stated objectives
ORL3: Incentive S/C Lee (2000), Frohlich and Westbrook (2001), Dong et al. To share risks, costs and
realignment (2001), Stank et al. (2001), Bagchi et al. (2005a, b), Briscoe rewards (operational and
and Dainty (2005), Gimenez and Ventura (2003, 2005), strategic collaboration)
Mollenkopf and Dapiran (2005), Sahin and Robinson
((2002, 2005), Das et al. (2006) and Swink et al. (2007)
(continued )
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Table 5. Continued.
ORL4: Integrated S/I/C Stock et al. (2000), Stank et al. (2001), Bagchi et al. (2005a, b) To promote attitudes and
behaviour and Swink et al. (2007) plans of action to promote
an integrated business
performance
ORL5: Joint S/I/C Briscoe and Dainty (2005), Gimenez and Ventura (2003, 2005), To guide organisations
establishment Das et al. (2006) and Kim (2009) towards a joint search for
of objectives for the end customer
all parties in the satisfaction
chain
ORL6: Sharing of S/I/C Dong et al. (2001), Droge et al. (2004), Bagchi et al. (2005a, b), To disseminate of best prac-
skills, ideas, Briscoe and Dainty (2005), Das et al. (2006), Vachon and tices among members of the
and institu- Klassen (2006, 2007) and Hsu et al. (2008) SC
tional culture
ORL7: Drawing S/I/C Bagchi et al. (2005a, b) and Briscoe and Dainty (2005) To establish procedures under
up of contin- the normal order of the
gency plans for company against possible
quick problem environment or business
solving unexpected situations
ORL8: Forging S/C Narasimhan and Kim (2002), Vickery et al (2003), Droge et al. To establish stable links with
Production Planning & Control
and maintain- (2004), Bagchi et al. (2005a, b), Briscoe and Dainty (2005), partners to enable mutual
ing long-term Sanders (2005) and Wong and Boon-itt (2008) trust
relationships
ORL9: Creating S/I/C Vickery et al (2003), Rodrigues et al. (2004), Bagchi et al. To encourage team building to
teamwork (2005a, b), Gimenez and Ventura (2003, 2005), Sanders allow for coordination and
along SC and (2005), Sanders and Premus (2005), Das et al. (2006), active cooperation between
cross-functional Germain and Iyer (2006) and Kim (2009) members of different
teams departments and companies
in the SC
811
812 R. Alfalla-Luque et al.
coordination and Information sharing as dimensions which can be supported, but not be replaced by
of the SCI. In another study, Vickery et al. (2003) information technologies (Sanders 2007). SCI needs
considered integrative information technologies and SC orientation across suppliers and customers in
SCI as different dimensions. Further, Sezen (2008) various tiers. Mentzer et al. (2001) define SC orienta-
established three different constructs – SCI, informa- tion as recognising strategic implications of materials,
tion sharing with suppliers and information sharing funds and information flow across the entire SC
with customers. Similarly, Tan et al. (2002) considered stakeholders. A firm has SC orientation if its manage-
an information sharing construct separately from SCI. ment can see the implications of managing the
These examples reinforce the need to create a concep- upstream and downstream physical and information
tual framework about SCI. flows. Therefore, SCI needs both strategic and oper-
Additionally, some papers focus only on external ational focus (Lambert et al. 1998, Fabbe-Costes et al.
integration (e.g. Frohlich and Westbrook 2001, Vachon 2009).
and Klassen 2006, 2007, Quesada et al. 2008) and others Further research will test several propositions using
have a broader inter- and intra-organisational scope this conceptual framework. First, despite the impor-
(e.g. Narasimhan and Kim 2002, Sanders and Premus tance that internal integration has for achieving inter-
2005, Wong and Boon-itt 2008). organisational integration (Rosenzweig et al. 2003),
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Perhaps, the lack of consensus on the level of SCI some papers focus only on external integration.
and performance (e.g. Gimenez and Ventura 2005, However, the literature suggests that firms must
Sahin and Robinson 2005, Swink et al. 2007, Van der achieve a relatively high degree of collaboration
Vaart and Van Donk 2008) could be attributed to the among internal processes before initiating external
different dimensions and variables used to measure the integration (Simchi-Levi et al. 2000, Fawcett and
SCI in each research and different scopes of these Magnan 2002, Harrison and Van Hoek 2005,
studies. Other reasons could be that the studies focus Sridharan et al. 2005, Cagliano et al. 2006).
on different industries. It could be further analysed Therefore, we set the following propositions for
whether each dimension and variable has the same future research.
impact on performance depending on the region, sector
or type of product. Flynn et al. (2010) state that it is Proposition 1: There is a positive relationship between
unclear whether the relationship between SCI and the levels of internal and external integration.
performance is the same in different countries or Proposition 2: Firms achieve a relatively high degree of
industries. For example, in the car industry, external internal integration before implementing external
integration does not lead to a competitive advantage integration.
because it is a prerequisite to survive, and almost all
companies have implemented it (Gimenez and Ventura Second, several papers have analysed some aspects
2003). Hence, SCI studies in specific country and of the SCI dimensions: information integration
industry employing the same SCI dimensions and (e.g. Vickery et al. 2003, Cagliano et al. 2006,
variables are required in order to achieve comparable Devaraj et al. 2007, Hsu et al. 2008, Sezen 2008),
results. coordination (e.g. Kannan and Tan 2005, Sahin and
This study proposes a multi-dimensional SCI Robinson 2005) and ORL (e.g. Kulp et al. 2004,
framework for future research (refer Figure 1). It Mollenkopf and Dapiran 2005). But the relationship
takes three dimensions (information integration, CRS between information integration, CRS and ORL has
and ORL) into consideration and these are analysed not been analysed in the literature. Some authors state
from both the inter- and intra-organisational perspec- that the integration of the organisations should start
tives. The proposed model defines the variables on with the exchange of information (Lee 2000, Mentzer
which a company should act in order to improve the et al. 2001, Paik and Bagchi 2007). However, more
level of integration. It should be highlighted that SCI is knowledge is needed with respect to the relationships
not only a process and technique, it also has important between SCI dimensions. The following propositions
human and organisational behaviour components. are established for further research.
Therefore, formal and informal communication, col-
Proposition 3: Information integration, coordination
laboration and joint agreements between companies
and resource sharing and organisational relationship
are indispensable elements for SCI to be successful.
linkages are positively correlated.
Organisations must expand their internal integrated
behaviour to customers and suppliers through external Proposition 4: Firms achieve a relatively high degree in
integration. SCI needs to be included in the organisa- information integration before achieving integration in
tional culture. SCI is a result of human interactions the remaining dimensions.
Production Planning & Control 813
The above four propositions should be analysed in defines SCI as a multi-dimensional construct. Based on
different regions and sectors in order to define possible the previous studies, a multi-dimensional conceptual
archetypes of integration. framework has been proposed (Figure 1). The devel-
Third, prior research indicates that the relationship oped dimensions and variables incorporate the com-
between SCI and performance needs greater attention. plexity of the concept. The proposed SCI dimensions
Researchers generally agree that a higher level of SCI (information integration, CRS and ORL) across the
positively influences the performance of the focal SC, considering both internal and external integration
organisation and its supply network (Frohlich and with customers and suppliers, provides a solid basis for
Westbrook 2001, Rosenzweig et al. 2003, Vickery et al. analysing the questions indicated in Section 5 and any
2003, Bagchi et al. 2005a). Studies have not achieved other related issues and challenges within SCI.
clear results in this topic (Rodrigues et al. 2004, Gimenez The proposed SCI framework has practical implica-
and Ventura 2005, Sahin and Robinson 2005, Swink tions also. It offers managers to reveal the variables and
et al. 2007). For example, Sahin and Robinson (2005) the level of integration for their SC. Additionally, it helps
concluded that the major benefit of SC collaboration measure effectiveness of SCI and means for improve-
comes from improved coordination, while information ment. Using the conceptual framework and taking into
sharing unlocks only a small portion of the potential account their sector, companies could establish the
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benefits associated with channel integration. Rodriguez current SCI level. For this, they could identify the
et al. (2004) concluded that if internal and external relevant variables in each dimension for its own SC,
operations are separated, there may not be much impact derive proxies for each variables, gather information on
on performance. However, when internal and external SCI against each proxy through interviewing the key
operations are integrated with each other along with stakeholders and derive strengths and weaknesses of SC.
internal business processes, there is a positive impact on Likewise, SCI opportunities and threats could be
performance. Therefore, the following propositions analysed in order to determine the expected SCI level
could be considered for further research. in coming years and adopt the appropriate strategic,
tactical and operational measures to achieve the desired
Proposition 5: Internal integration has a positive effect
level. The proposed SCI framework enables achieving
on performance.
superior SC performance by analysing the level of
Proposition 6: External integration has a positive integration, identifying rooms for improvement and
effect on performance. developing means for achieving excellence.
This study has two main limitations, such as no
Proposition 7: Internal and external integration have a
primary research was carried out to validate the
joint positive effect on performance.
proposed framework and the limited number of
Proposition 8: Information integration has a positive journals that were analysed to develop the conceptual
effect on performance. framework. However, the selected journals that are
used in this study are relevant to Operations
Proposition 9: Coordination and resource sharing has a
Management, Logistics and SCM and have very
positive effect on performance.
high-impact factors. Hence, they are a good
Proposition 10: Organisational relationship linkages sample for interpreting any data. Additionally, they
has a positive effect on performance. have been used in prior literature review for
researching SCI.
Proposition 11: SCI has a positive effect on
The proposed SCI framework (Figure 1) opens up
performance.
further research opportunities such as pursuing empir-
Additionally, the relative importance of each var- ical research on industry-specific SCI dimensions and
iable on overall performance could be tested. This will variables, case studies on what makes SC integrated
classify the variables in accordance to their importance and how SCI dimensions and variables help achieve
for achieving superior organisational performance. superior performance.
6. Conclusions Acknowledgements
This article contributes to build the SCI – dimensions, The authors gratefully acknowledge the significant contribu-
variables and framework. The literature review shows tions made by the anonymous reviewers to improve this
article. The authors also would like to express their gratitude
that SCI is a complex and not well-defined construct. for financial support from the Spanish Ministry of Education
Some authors have defined it as a mono-dimensional JC2010–0106 research grant, the University of Seville
construct, but the majority of the selected papers Research Plan and the Andalusian Regional Government.
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