Abstract: In today-s competitive global business environment,
the concept of supply chain management (SCM) continues to become
increasingly market-oriented, shifting the primary driver of the value
chain from supply to demand. Recent recommendations encourage
researchers to focus investigations on the supply chain process
integration (SCPI) capabilities that integrate a focal firm with its
network of suppliers and business customers to create value for it.
However, theoretical and empirical researches pertaining to the
antecedents and consequences of a focal firm-s SCPI capabilities have
been limited and piecemeal. The purpose of this study is to investigate
the critical determinants and consequences of a focal firm-s SCPI
capabilities. We test our proposed research framework using a sample
of 139 sales managers of manufacturing industries in Taiwan, our
research findings show that (1) both perceived business customer-s
power and focal firm-s market-oriented culture positively influences a
focal firm-s SCPI capabilities, and (2) SCPI capabilities positively
influence a focal firm-s SCM performance, both operational and
strategic benefits. Implications for practitioners and researchers and
suggestions for future research are also addressed in this study.