THE INTERACTION OF INTERNAL AND DOWNSTREAM INTEGRATION AND ITS ASSOCIATION WITH PERFORMANCE

Authors

  • Richard Germain Ph.D.,

    1. University of Louisville
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    • Richard Germain (Ph.D., Michigan State University) is the Challenge for Excellence Chair in Supply Chain Management at the University of Louisville. He research has been published in the Journal of Marketing Research, Strategic Management Journal, Decision Sciences, Journal of Business Logistics, the Journal of Operations Management, and the Journal of International Business Studies.

  • Karthik N. S. Iyer Ph.D.

    1. University of Northern Iowa
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    • Karthik N.S. Iyer (Ph.D., Oklahoma State University) is an Assistant Professor in the Department of Marketing at the University of Northern Iowa. His research interests include supply chain management, interorganizational relationships, and organizational learning. He has published in the Academy of Marketing Science Review, International Journal of Physical Distribution and Logistics Management, and Industrial Marketing Management.


Abstract

The authors study how internal and downstream integration and their interaction affect logistical and financial performance within the firm. The results indicate that internal and downstream integration and their interaction affect logistical performance — that is, the higher the internal integration, the stronger the relationship of downstream integration with logistical performance. The results also suggest that logistical performance directly predicts financial performance. The results suggest that superior performance derives from the firm simultaneously integrating functions, decision-making, and processes both within the firm and across the supply chain.

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