Process supply chain integration: construct development and model testing

Purpose This research offers clarity regarding process supply chain integration through two deliverables: (1) developing six constructs (both integrative mechanisms and integrative practices for internal, customer, and supplier integration); and (2) empirically testing a theoretically grounded supply chain process model using three distinct datasets (internal, customer, and supplier integration). Design/methodology/approach The construct development procedure involved a continuous improvement cycle for identifying 1,450 items previously used to measure internal, customer, and/or supplier integration constructs; classifying the items into one of six categories; and refining the instruments based on pilot data and peer feedback. Three surveys (targeted key informants based on their specialized knowledge on internal, customer, or supplier integration) were disseminated for evaluating the measurement instruments and testing the theoretically grounded supply chain management process models, by performing the Covariance-Based Structural Equation Modeling (CB-SEM) analysis technique. Findings The findings revealed consistencies across all three dimensions of supply chain integration where integrative mechanisms and integrative practices are distinct constructs; integrative mechanisms make it possible for integrative practices and supply chain orientation to occur in a supply chain company; and integrative practices and supply chain orientation improve business performance. Originality/value Our study contributes to answering how process-oriented supply chain management occurs, responding to calls for research in the supply chain management discipline and advancing theory development around supply chain integration. The theoretical and managerial contributions of developing six constructs and testing three supply chain management process models relate to identifying the specific aspects of supply chain integration that improves business performance. The three tested models also reveal both direct and mediating effects of integrative practices and supply chain orientation, which contributes to the practical understanding of effective supply chain management implementation.