A Study on the Effect of Important SCI Factors on Supply Chain Performance

Supply Chain Integration (SCI) is increasingly recognized as a strategic way to innovate a company’s entire business and it has become an interesting topic for both the research and the corporate practice. The purpose of this paper is to propose a model on the relationship between important SCI factors and supply chain performance and to investigate the relationship. In this paper, SCI was divided into three factors with particular emphasis on information integration, collaborative support activities, and workflow collaboration. An empirical study of the Korean manufacturing companies in the supply chain was conducted and the theoretical model was analyzed by using Structural Equation Models (SEM). The results derived from this study are as following: Information integration and collaborative support activities influence supply chain performance indirectly via workflow collaboration. This implies that workflow collaboration is very important when implementing Supply Chain Management (SCM) and that a company’s performance can be improved considerably through collaboration with supply chain members. This paper will be useful to researchers and managers in the SCM field. This paper will provide new lines of research such as Supplier Relationship Management (SRM) and it will show that there is a positive relationship between SCI and a supply chain performance. Hence, this paper encourages the collaboration among supply chain members.