Examining supply market scanning and internal communication climate as facilitators of supply chain integration

This paper aims to examine if supply market scanning and an organization’s internal communication climate are related to greater internal integration of supply management within the organization, and its subsequent effects on supplier integration and supplier performance.

A conceptual model, using information processing theory as a theoretical lens, is proposed and tested utilizing survey data gathered from supply management professionals from five European countries.

Supply market scanning and the organization’s internal communication climate are positively related to internal integration of supply management. Internal integration subsequently is positively related to supplier integration, which partially mediates the relationship with supplier performance. Internal integration is also positively and directly related to supplier performance.

Supply management fulfills a key role by being a conduit of information from the supply market to other internal functions and to ultimately improve supplier performance. Data were gathered from a single respondent in each firm and represents predominately manufacturing firms. Future research should use case studies to understand the process of how supply market information is conveyed internally, interpreted and used to improve supplier performance.

This paper provides evidence supporting the importance of supply management in integrating supply market information within the firm and with suppliers, which subsequently improves supplier performance.