The Impact Of Supply Chain Integration On The Financial Performance Of The Computer Communications Industry

With the continuous deepening of economic globalization,market competition is becoming more and more fierce,and the competition mode shifts from the competition among enterprises to the competition among supply chains.Integrating of the supply chain is a new field derived from supply chain management in recent years.Enterprises can cross the organizational boundaries through the integrating of supply chain,which transfers the relationship between core enterprises,suppliers and customers from competition to cooperation.Integrating of the supply chain has become an effective way for enterprises to improve financial performance,as the enterprises can integrate resources and improve competitive advantages in the process of supply chain integrating.As the first pillar industry of China’s economic development,the computer,telecom and other electronic equipment industry is a combination of traditional manufacturing and high-tech industry.With the further deepening of economic globalization,the problem of high cost and low profit margins has become increasingly prominent,and the competitive pressure from foreign excellent brands has further squeezed the company’s living space.Therefore,in the current situation where the computer,telecom and other electronic equipment industry is facing internal and external problems,it is of vital importance to explore the use of supply chain integration in this industry.This dissertation aims to research the relationship between supply chain integration and corporate financial performance based on 135 listed companies in computer,telecom and other electronic equipment industry in China during the five years from 2012 to 2015.The author uses the method of factor analysis to calculate the overall financial performance scores,and validate unilaterally integration of supply chain with upstream suppliers and downstream customers of enterprise financial performance and the influence of supply chain integration effects on corporate financial performance.The dissertation finds that in the computer,telecom and other electronic equipment industry supply chain integration helps improve corporate financial performance,and the integration of core companies with upstream suppliers has a significant positive impact on financial performance while while the integration of core companies with downstream distributors does not have a significant positive impact on financial performanceBased on the above findings,this dissertation believes that improving the supply chain integration is an effective way for the computer,telecom and other electronic equipment industry to improve financial performance.In order to realize the economic benefits of integrated supply chain,enterprises should carry out strategic cooperation with upstream suppliers and downstream distributors to realize the sharing of information and resources.Enterprises should also deepen the cooperation with upstream suppliers and downstream distributors in the process of procurement and R&D and create an overall supply chain competition.Secondly,the current management situation of supply chain management and supply chain cooperation relationship have a certain reference value for investors.A good supply chain management model reflects the company’s good financial performance and operating efficiency,therefore companies should strengthen the relevant information disclosure of the supply chain.Investors should also pay attention to the stability and continuity of the companies’ cooperative relationship between suppliers and vendors,and accordingly make a reasonable estimate of the company’s growth capability.Finally,the government should encourage companies to take the path of supply chain integration,and improve competitiveness in China’s computer communications industry and the entire manufacturing industry.