SUPPLIER INTEGRATION AND TIME-BASED CAPABILITIES: AN EMPIRICAL STUDY

ABSTRACT

Supplier integration is touted as an imperative strategy to improve firm performance and enhance a firm's competitive advantage in the marketplace. This study investigates the relationship between several supplier integration practices and time-based capabilities. We posit that both supplier integration and time-based capability are multi-dimensional constructs and not all collaborative activities are equally important to all aspects of time-based competition. Based on the literature, several supplier integration activities, including supplier involvement, design integration, supplier base reduction, supplier commitment, and information sharing practices are examined regarding their effect on time-based competition, measured as delivery speed, new product development time, delivery reliability, and manufacturing cycle time. The statistical findings indicate while supplier integration contributes to the performance of a firm's time-based competition, some integration practices are more effective than others. The results provide specific guidelines for firms to develop and implement different supplier integration practices for enhancing specific kinds of time-based capabilities. Finally, research propositions are presented and several managerial implications are discussed.

Keywords:

• supplier integration
• time-based capabilities
• supply chain management