A study on structural embeddedness of supply chain and firm performance-based on the moderation of integration mechanism

Abstract

Building industry, as the leading industry, presents great influence on economic and regional development. Past empirical research on the relationship among supply chain partners in building industry is short that resource dependence and network embeddedness theory are utilized in this study for exploring the effect of structural embeddedness between supply chain firms and partners in building industry on the business performance. To test the theories and hypotheses proposed in this study, firms in building industry in Taiwan are used as the empirical objects of a large sample survey for the empirical data collection. The empirical results reveal the directly positive effect of high structural embeddedness between supply chain firms and the partners on firm performance. It also finds out the directly positive contribution of the integration mechanism among supply chain partners to firm performance. Finally, the integration mechanism among supply chain partners actually presents the catalytic effect between structural embeddedness and firm performance. According to the empirical results, successive suggestions are proposed in this study for the practice of supply chain in building industry and the reference of successive research.

Keywords:

• Resource dependence
• Embeddedness
• Cooperative network
• Integration mechanism