LOGISTIC MANAGEMENT

REPORT WRITING

GROUP MEMBERS:
DUAA AMIR (2212054)
AHMED AMEER HAMZA (2212040)
ALI HAROON (2212
ALI ZARGAM AMJAD (2212016)
SUBMITTED TO:
MA'AM WARDAH GHAFOOR
DATE: 23-10-2024

NATIONAL UNIVERSITY OF MODERN LANGUAGES

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Table of Contents:
...................................................................................................................................................................... 1
1. Introduction ........................................................................................................................................... 3
2. Theoretical Development ...................................................................................................................... 3
2.1 Resource-Based View (RBV) ............................................................................................................ 3
2.2 Resource-Advantage Theory and Relational View .......................................................................... 4
2.3 Secondary Theories ......................................................................................................................... 4
3. Hypotheses Development ..................................................................................................................... 4
3.1 Dimensions of Supply Chain Integration ......................................................................................... 4
3.2 Dimensions of Firm Performance ................................................................................................... 5
3.3 Moderators and Controls ................................................................................................................ 5
4. Methodology ......................................................................................................................................... 6
4.1 Data Collection ................................................................................................................................ 6
4.2 Meta-Analytic Techniques .............................................................................................................. 6
4.3 Study Selection and Coding............................................................................................................. 6
5. Results and Findings ............................................................................................................................. 6
5.1 Overall Impact of SCI on Firm Performance.................................................................................... 6
5.2 Impact of SCI Dimensions on Firm Performance ............................................................................ 7
5.3 Performance Subgroups ................................................................................................................. 7
6. Discussion ............................................................................................................................................. 7
6.1 Interpretation of Key Findings ........................................................................................................ 7
6.2 Implications for Theory ................................................................................................................... 8
6.3 Implications for Managers .............................................................................................................. 8
7. Limitations and Future Research .......................................................................................................... 8
7.1 Methodological Limitations ............................................................................................................ 8
7.2 Suggestions for Future Research .................................................................................................... 8
8. Conclusion ............................................................................................................................................ 9

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 META-ANALYSIS OF SUPPLY CHAIN
INTEGRATION (SCI) AND FIRM PERFORMANCE

1. Introduction:

This report provides a detailed meta-analysis of the relationship between Supply Chain Integration
(SCI) and firm performance. SCI is a critical concept for modern businesses operating in
globalized, complex environments where closer coordination across the supply chain can be a key
driver of success. The study synthesizes findings from 86 peer-reviewed journal articles,
representing over 17,000 observations across various industries, to offer insights into how SCI
improves firm performance in financial, operational, and customer-oriented terms.

The research aims to answer the following key question: How does Supply Chain Integration (SCI)
impact firm performance across different dimensions and what are the specific performance
outcomes?

2. Theoretical Development:

2.1 Resource-Based View (RBV):

RBV argues that a firm’s resources are central to achieving competitive advantage. SCI can be
seen as a valuable resource that firms develop over time through closer collaboration with suppliers
and customers. These relationships are often rare, difficult to imitate, and not easily substitutable,
providing firms with a unique strategic advantage.

• Application of RBV in SCI: Firms that excel in SCI are more likely to integrate
knowledge, information, and operational processes in a way that creates value that
competitors cannot easily replicate.

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2.2 Resource-Advantage Theory and Relational View:

• Resource-Advantage Theory: Extending RBV, R-A theory highlights the role of valuable
resources that create competitive market advantages. In SCI, these resources can include
strong inter-firm ties and cooperative strategies that help firms outperform competitors by
creating more effective supply chain operations.
• Relational View (RV): RV emphasizes that partnerships and collaborative relationships
between firms are a key source of competitive advantage. Firms that build strong relational
ties with suppliers and customers can co-create value that is difficult for others to replicate,
enhancing performance.

2.3 Secondary Theories:

• Knowledge-Based View (KBV): KBV stresses the importance of knowledge sharing

across firm boundaries. SCI facilitates this sharing, making knowledge more accessible to
both the focal firm and its partners.
• Social Exchange Theory (SET): According to SET, firms collaborate with others to
maximize rewards and minimize risks. In the context of SCI, firms can improve
performance by fostering mutually beneficial relationships.
• Transaction Cost Economics (TCE): TCE explains that SCI helps reduce transaction
costs by streamlining coordination mechanisms and minimizing inefficiencies.
• Information Processing Theory (IPT): IPT links the ability to process and share
information with improved firm outcomes, particularly in complex and volatile
environments. SCI improves information processing, allowing firms to better respond to
market changes.

3. Hypotheses Development:

3.1 Dimensions of Supply Chain Integration:

The study categorizes SCI into three core dimensions:

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 • Information Integration: The sharing and coordination of data and communication across
the supply chain.

Hypothesis H2a: Information Integration is positively related to firm performance.

• Operational Integration: Collaborative activities and joint decision-making across firms.

Hypothesis H2b: Operational Integration is positively related to firm performance.

• Relational Integration: Trust-based, strategic relationships built on long-term

commitment between supply chain partners.

Hypothesis H2c: Relational Integration is positively related to firm performance.

3.2 Dimensions of Firm Performance:

The impact of SCI is evaluated across three primary performance dimensions:

• Financial Performance: Includes profitability, return on assets, and revenue growth.

Hypothesis H3a: SCI is positively related to financial performance.

• Customer-Oriented Performance: Measures customer satisfaction, loyalty, and

retention.

Hypothesis H3b: SCI is positively related to customer-oriented performance.

• Operational Performance: Includes metrics such as cost reduction, quality

improvements, delivery speed, flexibility, and innovation.

Hypothesis H3c: SCI is positively related to operational performance.

3.3 Moderators and Controls:

The study explores the moderating effects of several factors, including:

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 • Type of SCI: Internal vs. external integration.
• Scope of Integration: Supplier integration, customer integration, external integration, and
internal integration.
• Industry Context: Different industries may experience other benefits from SCI.

Moderator analysis helps explain why some dimensions of SCI may have stronger effects on firm
performance than others.

4. Methodology:

4.1 Data Collection:

The researchers systematically reviewed 86 peer-reviewed journal articles related to SCI and firm
performance. These studies covered various industries, firm sizes, and geographical locations,
resulting in 17,467 observations.

4.2 Meta-Analytic Techniques:

The analysis followed the meta-analytic procedures outlined by Hunter and Schmidt (2004). The
correlation coefficients were adjusted for measurement error, sample size, and reliability.

4.3 Study Selection and Coding:

Each article was coded for SCI dimensions, firm performance measures, and study characteristics.
The effect sizes (correlation coefficients) were extracted, and the weighted averages were
calculated to provide an overall measure of the SCI-performance relationship.

5. Results and Findings:

5.1 Overall Impact of SCI on Firm Performance:

The meta-analysis revealed a strong overall positive relationship between SCI and firm
performance, with a corrected correlation of 0.36. This confirms that SCI significantly improves
firm outcomes across various performance dimensions.

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5.2 Impact of SCI Dimensions on Firm Performance:

• Information Integration (H2a): Showed a strong positive correlation with firm

performance, suggesting that sharing data across supply chain partners enhances
operational efficiency and customer satisfaction.
• Operational Integration (H2b): The correlation was positive but weaker than expected.
This indicates that operational benefits from integration, such as cost reductions and
improved decision-making, may take longer to materialize.
• Relational Integration (H2c): Had the strongest positive impact on firm performance,
especially in the areas of customer retention and long-term financial gains. Strong, trust-
based relationships with supply chain partners appear to drive long-term success.

5.3 Performance Subgroups:

The analysis also identified differences in how SCI affects various aspects of firm performance:

• Financial Performance (H3a): SCI's impact on financial performance was significant but
varied by industry and firm size. Stronger effects were seen in industries where
collaboration and coordination were more critical to success.
• Customer-Oriented Performance (H3b): SCI had a significant positive impact on
customer satisfaction and loyalty, reflecting the importance of integration for customer
retention strategies.
• Operational Performance (H3c): The strongest correlations were found for delivery
speed and innovation. Improvements in cost and quality, however, were not as strongly
correlated with SCI.

6. Discussion:

6.1 Interpretation of Key Findings:

The findings support the hypothesis that SCI positively influences firm performance across
multiple dimensions. Notably, relational integration is the most critical component, while
operational integration takes longer to yield results.

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6.2 Implications for Theory:

The study extends the Resource-Based View (RBV) and Relational View (RV) by demonstrating
that SCI is a strategic resource that contributes to firm performance, especially when firms focus
on building strong, trust-based relationships.

6.3 Implications for Managers:

Managers should prioritize building relational integration by investing in long-term partnerships

with suppliers and customers. Additionally, while operational integration may not yield immediate
cost savings, it is critical for long-term innovation and delivery performance.

7. Limitations and Future Research:

7.1 Methodological Limitations:

• The meta-analysis may have missed some relevant studies due to publication bias or
unavailable data.
• The study also focuses on correlation rather than causation, limiting the ability to determine
direct causal relationships between SCI and performance.

7.2 Suggestions for Future Research:

Future research should:

• Focus on industry-specific analyses to better understand how SCI impacts different sectors.
• Investigate the long-term effects of SCI, particularly operational performance.
• Explore the role of technological advancements in SCI, such as the impact of digital
transformation on supply chain coordination.

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8. Conclusion:

This meta-analysis confirms that Supply Chain Integration (SCI) positively impacts firm
performance across various dimensions, including financial, operational, and customer-oriented
outcomes. The study highlights the importance of relational integration and long-term partnerships
as key drivers of firm success. As businesses continue to operate in increasingly complex and
dispersed supply chains, managers should focus on enhancing all dimensions of SCI to secure
sustainable competitive advantages and improve overall performance.

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