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African Journal of Business Management

     
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Afr. J. Bus. Manage.


 Vol. 4 No. 7



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Pai FY

Yeh TM


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African Journal of Business Management Vol. 4(7), pp. 1308-1319, 4 July, 2010     

ISSN 1993-8233 ©2010 Academic Journals

 

 

Full Length Research Paper

 

The effects of inter-firm power and supply partner assessment on supply chain integration

 

Fan-Yun Pai1* and Tsu-Ming Yeh2

 

1Department of Business Administration, National Changhua University of Education, Taiwan.

2Department of Industrial Engineering and Technology Management, Da-Yeh University, Taiwan.

 

*Corresponding author. E-mail: fypai@cc.ncue.edu.tw.

Tel: +886-4-7232105 #7415.

 

Accepted 31 May, 2010

 

 Abstract

 

With rapid changes in technology and globalization of markets, it has become very difficult for firms to “go it alone”. World-class companies, therefore, seek to enhance competitive performance by effectively linking them with the external operations of supply chain members. Several factors are critical to effective integration. Supplier’s power is one of the major factors influencing supply chain integration. Supplier’s characteristics determined its power. Inter-firm power affects buyers and suppliers' decision and subsequently the performance of the buyer. The relationships among supplier's assessment, power, cooperative attitude and supply chain integration are hypothesized and investigated based on empirical data collected from companies in semiconductor component manufacturing supply chain. The results demonstrate that both power structure and suppliers’ characteristic influence supply chain integration. Managerial insights are provided accordingly for companies to achieve better supply chain integration in nowadays highly competitive environments.

 

Key words: Supply chain integration, power, supplier assessment, cooperation.

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