Exploring The Role of External Integration in Shaping Supply ‎Chain Capabilities

  • Authors

    https://doi.org/10.14419/pgxf7k95

    Received date: December 19, 2025

    Accepted date: January 22, 2026

    Published date: January 26, 2026

  • Supplier Integration; Customer Integration; Dynamic Capability View; Supply Chain Capabilities; Manufacturing Industry
  • Abstract

    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.

  • References

    1. Ali, A., Mahfouz, A., & Arisha, A. (2017). Supply Chain Management: An International Journal For Authors Analysing supply chain resilience: integrating the constructs in a concept mapping framework via a systematic literature review. Supply Chain Management: An International Journal, 22(1), 16–39. https://doi.org/10.1108/SCM-06-2016-0197.
    2. Andrina, A. A. P., & Sutrisno, T. F. C. W. (2024). The Role of Integration Processes on Supply Chain Flexibility and Supply Chain Agility in a Dynamic Environment : Evidence from the Food and Beverage Manufacturing in Indonesia. International Journal of Business and Technology Management, 6(4), 449–470. https://doi.org/https://myjms.mohe.gov.my/index.php/ijbtm/article/view/28497.
    3. Beske, P., Land, A., & Seuring, S. (2014). Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature. International Journal of Production Economics, 152, 131–143. https://doi.org/10.1016/j.ijpe.2013.12.026.
    4. Brusset, X., & Teller, C. (2016). Supply Chain Capabilities, Risks, and Resilience. International Journal of Production Economics, 184(1), 59–68. https://doi.org/10.1016/j.ijpe.2016.09.008.
    5. Chari, A., Niedenzu, D., Despeisse, M., Machado, C. G., Azevedo, J. D., Boavida-Dias, R., & Johansson, B. (2022). Dynamic capabilities for circular manufacturing supply chains—Exploring the role of Industry 4.0 and resilience. Business Strategy and the Environment, 31(5), 2500–2517. https://doi.org/10.1002/bse.3040.
    6. Dubey, R., Altay, N., Gunasekaran, A., Blome, C., Papadopoulos, T., & Childe, S. J. (2018). Supply chain agility, adaptability and alignment: Empirical evidence from the Indian auto components industry. International Journal of Operations and Production Management, 38(1), 129–148. https://doi.org/10.1108/IJOPM-04-2016-0173.
    7. Fianko, A. O., Essuman, D., Boso, N., & Muntaka, A. S. (2023). Customer integration and customer value: contingency roles of innovation capabilities and supply chain network complexity. Supply Chain Management, 28(2), 385–404. https://doi.org/10.1108/SCM-12-2020-0626.
    8. Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71. https://doi.org/10.1016/j.jom.2009.06.001.
    9. Grant, R. M. (2009). Prospering in dynamically- Competitive environments: Orginizational capability as knowledge integration. Knowledge and Strategy, August 2015, 133–154. https://doi.org/10.1016/B978-0-7506-7088-3.50011-5.
    10. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203.
    11. Isfianadewi, D., & Anindityo, M. H. (2022). The effect of supply chain agility in mediation of absorptive capacity and competitive advantage. International Journal of Research in Business and Social Science, 11(5), 545–555. https://doi.org/10.20525/ijrbs.v11i5.1836.
    12. Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining Supply Chain Management. Journal of Business Logistics, 22(2), 1–25. https://doi.org/10.1002/j.2158-1592.2001.tb00001.x.
    13. Miocevic, D., & Morgan, R. E. (2018). Operational capabilities and entrepreneurial opportunities in emerging market firms: Explaining exporting SME growth. International Marketing Review, 35(2), 320–341. https://doi.org/10.1108/IMR-12-2015-0270.
    14. Nikookar, E., & Yanadori, Y. (2022). Preparing supply chain for the next disruption beyond COVID-19: managerial antecedents of supply chain resilience. International Journal of Operations and Production Management, 42(1), 59–90. https://doi.org/10.1108/IJOPM-04-2021-0272.
    15. Raj, A., Mukherjee, A. A., de Sousa Jabbour, A. B. L., & Srivastava, S. K. (2022). Supply chain management during and post-COVID-19 pandemic: Mitigation strategies and practical lessons learned. Journal of Business Research, 142(January), 1125–1139. https://doi.org/10.1016/j.jbusres.2022.01.037.
    16. Ramlawati, Murniati, S., Haditomo, A. H. C., Mambuhu, N., Indriakati, A. J., & Fitriana. (2022). Analyzing Mediation Effect of Competitive Advantage on Firm Performance as Measured by Total Quality Management and Supply Chain Management. Journal of Applied Management (JAM), 20(1), 66–74. https://doi.org/10.21776/ub.jam.2022.020.01.07.
    17. Sarstedt, M., Ringle, C. M., & Hair, J. F. (2017). Partial Least Squares Structural Equation Modeling BT - Handbook of Market Research. In C. Homburg, M. Klarmann, & A. Vomberg (Eds.), Handbook of Market Research (pp. 1–40). Springer International Publishing. https://doi.org/10.1007/978-3-319-05542-8_15-1.
    18. Singh, R. K., & Modgil, S. (2024). Adapting to disruption: the impact of agility, absorptive capacity and ambidexterity on supply chain resilience. International Journal of Productivity and Performance Management, 74(2), 637–658. https://doi.org/10.1108/IJPPM-01-2024-0057.
    19. Tarigan, Z. J. H., Siagian, H., & Jie, F. (2021). Impact of internal integration, supply chain partnership, supply chain agility, and supply chain resilience on sustainable advantage. Sustainability (Switzerland), 13(10), 1–18. https://doi.org/10.3390/su13105460.
    20. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.4337/9781035334995.00014.
    21. Vanpoucke, E., Vereecke, A., & Wetzels, M. (2014). Developing supplier integration capabilities for sustainable competitive advantage: A dynamic capabilities approach. Journal of Operations Management, 32(7–8), 446–461. https://doi.org/10.1016/j.jom.2014.09.004.
    22. Wilden, R., Devinney, T. M., & Dowling, G. R. (2016). The Architecture of Dynamic Capability Research Identifying the Building Blocks of a Configurational Approach. Academy of Management Annals, 10(1), 997–1076. https://doi.org/10.1080/19416520.2016.1161966.
    23. Wu, T., Blackhurst, J., & Chidambaram, V. (2006). A model for inbound supply risk analysis. Computers in Industry, 57(4), 350–365. https://doi.org/10.1016/j.compind.2005.11.001.
    24. Zhao, L., Huo, B., Sun, L., & Zhao, X. (2013). The impact of supply chain risk on supply chain integration and company performance: a global investigation. Supply Chain Management: An International Journal, 18(2), 115–131. https://doi.org/10.1108/13598541311318773.
  • Downloads

  • How to Cite

    Wibisono, A. H., Sutrisno, T. F., & Murwani, F. D. (2026). Exploring The Role of External Integration in Shaping Supply ‎Chain Capabilities. International Journal of Accounting and Economics Studies, 13(1), 505-512. https://doi.org/10.14419/pgxf7k95