Do a countryʹs logistical capabilities moderate the external integration performance relationship?

Companies have reacted to the opportunities and threats of globalization through numerous production practices that have increased supply chain complexity. One of the ways companies have been able to manage this increased level of complexity is by integrating their supply chains. Logistical capabilities at the company level play a key role in integrating global supply chains, but logistical capabilities need not be company specific. In this study we explore the role of a countryʹs logistical capabilities in external supply chain integration. Our results indicate that plants situated in countries with superior levels of logistical capabilities adopt significantly lower levels of external supply chain integration. Additionally, plants situated in countries with superior logistical capabilities do not gain the same performance benefits from external integration as plants situated in countries with relatively low levels of logistical capabilities.