Study On The Relationship Between Supply Chain Integration And Financial Performance Of The Core Enterprise

The theory of financial performance is an important research area in the field of financial management theory,the perspective of research is diversify.At present,our country’s academia on the supply chain integration is less, and has not formed a consistent conclusion. Under the background of global economic integration, supply chain management has already become the enterprises to improve the core competitiveness, then the study on supply chain integration and the financial performance of the core enterprise effect has important practical significance.This paper based on the theory of industrial organization and the theoretical framework of the relationship between the degree of supply chain integration and the financial performance, selected China’s Shanghai manufacturing enterprises in 948 samples, with the "top 5 suppliers accounted for purchase" and "top 5 customers accounted for sales" as a measure of the degree of the supply chain integration, in accordance with the size of the supply chain integration to build the complete competition, monopolistic competition, oligopoly supply chain model. The empirical analysis draw the following conclusions: within the critical point,supply chain integration on the financial performance of the core enterprise has a positive effect,but more than a certain critical point, the core enterprise financial performance has negative effect, overall, the upstream and downstream supply chain integration and core financial performance was " inverted U relationship".The results show that there is a critical point in the effect of supply chain integration on the financial performance. This paper attempts to determine the supply chain integration of reasonable control range: the upstream supply chain integration should remain within 20%,or leading to a decline in financial performance of the enterprise core; downstream supply chain integration should control in 15%- 29%,which has a certain reference value to our manufacturing industry enterprise’s supply chain integration management.Based on this, this paper put forward some recommendations from changing the core enterprise supply chain management concept,promoting the supply chain integration level, taking into account the integrated supply chain and supply chain risk, in order to provide some ideas for core enterprises to optimize the financial preference from the perspective of supply chain,and open a new research field for the theory of supply chain management andfinancial performance.