External Integration in Demand Networks: Does it Always Work?

External integration (EI) is recognized as a key performance driver in supply networks. This paper analyzes the impact of EI on supply network efficiency and the moderating effect on this relationship of supply network performance measurement systems. Data from a sample of 200 manufacturing plants settled in different countries demonstrates that the moderating effect exists. Therefore to strengthen the impact of EI on supply network efficiency managers should modulate interventions on EI and supply network performance measurement systems, rather than invest and focus on EI only