Exploring the Effects of Supply Chain Structure on Supply Chain Integration in the Manufacturing Industry

Abstract

This research is an exploratory study of the relationship between two supply chain management (SCM) concepts, namely supply chain structure and supply chain integration. The objective is to enhance the understanding of the extent to which supply chain structure is relevant to the supply chain integration, and of how this relationship between these concepts contributes to the ideas of supply chain quality (SCQ) in the manufacturing industry. The literature review with reference to the structure and integration results in the following structural dimensions: centralisation, formalisation and communication which are likely to have an effect on the supply chain integration; ultimately, on supply chain quality. For the purposes of this research, the conceptual model was developed, and its validity was explored via case-studies. The two manufacturing supply chains including their focal firms and the first-tier suppliers based in Turkey were selected as the case-supply chains. A total of 41 face-to-face, semi-structured interviews were carried out. The findings of the present study suggest that while formalisation and communication are positively related to the supply chain integration, centralisation in which a focal firm designs and manages the whole network negatively affects the supply chain integration. Hence decentralised, formalised supply chains facilitated by the means of communication are proposed in today’s global economy in order for supply chains to achieve integration, hence considered to attain supply chain quality.