Supply chain integration for middle-market firms: a qualitative investigation

Abstract

PurposeThis research seeks to identify the motivations, means and outcomes of supply chain integration (SCI) among firms in the middle market (i.e. those with annual revenues between US$10m and US$1bn). These firms often interface with larger, more powerful firms in the supply chain – both suppliers and customers. Understanding how these firms are challenged and benefit from integrative mechanisms in supply chain relations can lead to better outcomes more often.Design/methodology/approachThe research utilizes an online focus group methodology featuring 39 participants. The participants were able to interact in written form with a professional moderator, as well as each other, over the course of three days.FindingsThe research presents evidence that firms in the middle market adopt SCI as a response to pressure from customers and suppliers. These firms also view technology as a primary means of achieving integration. Despite their disadvantageous size position relative to larger customers and suppliers, firms in the middle market achieved positive outcomes from integration.Research limitations/implicationsBecause of the specific context of middle-market firms, this research may lack generalizability. However, providing contextualization regarding firm size contributes specificity to the large number of studies detailing the challenges and benefits of SCI.Practical implicationsManagers of firms in the middle market should find value in this study as it explicates the possible benefits their firms may realize through integration with customers and suppliers. Moreover, this research outlines several of the possible means through which integration can be achieved. Further, managers in smaller and larger firms can better understand the motives and needs of middle-market companies with which they interact.Originality/valueDespite voluminous literature on SCI, this paper provides context-specific findings by isolating the implications of SCI to firms in the middle market.