This study identifies the factors that influence supply chain integration between manufacturer and suppliers and develop the measurement instruments for them. The factors influencing supplier integration include mediated power, non-mediated power, normative relationship commitment, and instrumental relationship commitment among the trading partners. This study empirically investigates the relationships between the factors that influence supplier integration, the degree to which the suppliers are integrated, and supplier and manufacturer’s performance within the supply chain using data collected from manufacturing companies within the supply chains from Mainland China and Hong Kong. This study also empirically tests the reliability and validity of the instruments. The results show that two types of power impact relationship commitment significantly. Relationship commitment has a positive influence on supplier integration and supplier’s performance. Supplier integration leads to manufacturer’s financial performance. This study provides important insights for future researchers to understand power, relationship commitment and supplier integration from various perspectives. Findings from the study can help companies enhance their global competitiveness by developing and managing relationships with their trading partners that will enable them to have effective integration of key processes within the supply chain.
Huo, Baofeng; Zhao, Xiande; and Yeung, Jeff Hoi Yan, "Power, Relationship Commitment and Supply Chain Integration Between Manufacturer and Supplier" (2005). ICEB 2005 Proceedings. 160.