The impact of supply chain integration on firm performance in the pork processing industry in China

Supply chain integration (SCI) is one of the most distinctive dimensions in achieving long‐term competitive advantage in the business world. Although considerable state‐of‐the‐art studies regarding the SCI concept and its dimensions have been conducted, empirical research by using the data from agri‐food firms in China to examine the relationship between SCI and firm performance attract little attention. The purpose of this paper is to investigate the effects of SCI on firm performance in pork supply chains in China.

The study follows a causal research approach and survey methodology to collect data from 229 pork processors. The SCI‐firm performance link is examined in two relationships: the pork processors with their upstream pig (meat) suppliers and with their downstream customers. Partial least squares method was used to test the causal relationships.

The results suggest that internal integration and buyer‐supplier relationship coordination are significantly related to firm performance in both relationships. Information technology integration is not significantly related to both upstream and downstream relationships. Logistics integration significantly contributes to pork processors' performance in relationships with downstream customers.

The extension of the SCI construct contributes to supply chain management theory in the context of China.