An investigation of the moderating effects on the downstream integration-supply network performance relationship

Downstream integration (DI) is a key managerial area to improve performance in supply networks. Though most studies agree that DI positively influences performances, literature also reports cases of failures in achieving significant improvements. This evidence suggests that some factors may act as moderators on the DI-performance relationship. This paper analyzes the impact of DI on supply network efficiency and the moderating effects on this relationship of upstream integration, supply network structure, and supply network performance measurement systems. Data from a sample of 266 manufacturing firms settled in several countries around the world demonstrates that all the three investigated moderating effects exist. Therefore managers should launch an appropriate mix of interventions on DI, upstream integration, supply network structure, and supply network performance measurement systems, rather than investing and focusing on DI only. This paper provides some hints on how to structure these SCM initiatives’ mix to strengthen the impact of DI on supply network efficiency.