Does high supply chain integration enhance customer response speed?

Abstract

The capability of customer response speed is commonly employed by firms that wish to strengthen their relationship with customers in order to maintain a high level of service in a hypercompetitive environment of rapidly changing technology. Improved customer response speed also helps manufacturers respond more rapidly to satisfy customer needs. However, does high level of supply chain integration with customers have positive impact on customer response speed? This study proposes a conceptual model to examine antecedents to better firm performance, with customer response speed as a mediator. The conceptual model was empirically tested using data collected from 809 manufacturing companies in the Greater China Region. The results show that the nature of the relationship between customer integration and customer response speed may vary substantially from one area to another. Also, customer response speed mediates between customer integration and firm performance in China and Taiwan.

Keywords:

• customer integration
• customer response
• supply chain
• firm performance
• service business

Acknowledgements

This work was supported by the Ministry of Science and Technology of Taiwan [grant number: NSC 98-2410-H-002-065-MY2]. We appreciate the helpful feedback from both the editor and referees on the earlier drafts of the manuscript.