Does national culture matter? Understanding the impact of supply chain integration in multiple countries

Abstract

Purpose With increasing globalization, supply chain management in various national cultures requires understanding. This study aims to examine the moderating effects of individualistic and uncertainty avoidance cultures on the relationship between supply chain integration (SCI) and different dimensions of firm performance (i.e. flexibility and financial). Design/methodology/approach This study collected 124 pairwise survey data from supply chain and senior managers of retail firms in 35 countries. Hofstede’s national culture index was used to examine the moderating effects. Structural equation modeling and regression analysis were used to test the model. Findings Results corroborate that in a higher uncertainty avoidance culture, the positive influence of SCI on flexibility performance is stronger, but that on financial performance is weaker. By contrast, individualism reduces the positive influence of SCI on financial performance, but does not moderate that on flexibility performance. Originality/value This paper proposes a contingent model for SCI-performance relationships by integrating the relational view and the national cultural perspective. Critical national cultural dimensions moderate the effects of SCI on flexibility and financial performance. Therefore, operational managers should design differential SCI strategies in various cultural settings.