The Relationship between Supply Chain Integration and Operational Performances: A Study of Priorities and Synergies

Since the past decades, supply chain integration (SCI) has been a phenomenon of interest in the shipping industry. This article examines and ranks the effects of internal and external SCI on operational performances. Pairwise interactions among components of SCI were also studied. Expert interviews followed by a survey on 172 shipping companies in Singapore were conducted. Based on the results from regression analysis, it was found that external SCI contributes more positively to operational performances. Positive interactions between similar internal and external SCI components were also noted. The result indicates that firm performances can be maximized from establishing closer relationships with supply chain partners. Additional performances can also be realized from synergies that are generated from performing similar internal and external SCI activities. The current article has provided explanations for the sources of synergies in SCI and their role in driving firms’ performances.