Exploring The Role of External Integration in Shaping Supply Chain Capabilities
DOI:
https://doi.org/10.14419/pgxf7k95Keywords:
Supplier Integration; Customer Integration; Dynamic Capability View; Supply Chain Capabilities; Manufacturing IndustryAbstract
Purpose: This study investigates how external integration, supplier and customer integration, shape supply chain capabilities in Indonesian manufacturing firms, using the Dynamic Capability View as the theoretical foundation.
Methodology: A quantitative approach was applied using survey data collected from 115 supply chain professionals. The proposed model was analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM).
Findings: Supplier integration significantly enhances sensing and seizing capabilities, while customer integration shows no significant effect. Neither integration type influences reconfiguration capability, highlighting the role of internal organizational mechanisms in capability development.
Originality: This study clarifies how upstream and downstream integration contribute differently to the formation of dynamic capability. It extends theoretical understanding of supply chain capability development in emerging economies and offers practical guidance for strengthening cross-boundary collaboration.
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