| The Internet has provided the technological platform to support real-time interaction and transparency across the demand and supply chain—enabling a shift from a fragmented demand and supply chain to an integrated one. For firms that are able to exploit this technological opportunity, the environment becomes one where business processes are intertwined and the velocity of trading increases. However, achieving real-time interaction and transparency in an integrated demand and supply chain has been an elusive goal for many firms. Firms are typically focused on perfecting their own internal systems to support their trading activities and retooling legacy systems to integrate with the systems of potential partners leading to fragmented configurations. Now, the focus is shifting toward digitally integrated demand and supply chain configurations that are built around establishing networks of relationships between the firm, its suppliers and customers.; The purpose of this research is to theoretically develop the concept of Demand & Supply Chain Integration as a process capability. A field study of logistics professionals was conducted to assess: (1) the Demand & Supply Chain Integration concept as a process capability that is defined by four constructs: Supplier Execution Integration, Customer Execution Integration, Physical Integration, and Financial Integration, (2) Interorganizational IT Coordination and Product Recombinability as structural capabilities that impact Demand & Supply Chain Integration, and (3) the Performance outcomes of Demand & Supply Chain Integration. The research design focuses on developing measures to evaluate the theoretically specified constructs, and collecting survey data to validate the measures and the structural model.; This research found strong support for the role of data and application integration in the integrated demand and supply chain suggesting that firms should focus on building a portfolio of IT capabilities. Modularity at the product level has the expected relationship with physical integration supporting the idea that a component-based inventory management strategy will allow firms to better manage demand. This theory development suggests that effecting changes in firm performance requires careful development of a set of process capabilities that defines the integrated demand and supply chain. |
