The effects of inter-firm power and supply partner assessment on supply chain integration

With rapid changes in technology and globalization of markets, it has become very difficult for firms to "go it alone". World-class companies, therefore, seek to enhance competitive performance by effectively linking them with the external operations of supply chain members. Several factors are critical to effective integration. Supplierʹs power is one of the major factors influencing supply chain integration. Supplierʹs characteristics determined its power. Inter-firm power affects buyers and suppliersʹ decision and subsequently, the performance of the buyer. The relationships among supplierʹs assessment, power, cooperative attitude and supply chain integration are hypothesized and investigated based on empirical data collected from companies in semiconductor component manufacturing supply chain. The results demonstrate that both power structure and suppliersʹ characteristics influence supply chain integration. Managerial insights are provided accordingly for companies to achieve better supply chain integration in nowadays highly competitive environments.