The Interactive Effect of Supply Chain Integration on Performance of International Freight Forwarders

Abstract

There are two aims of this research: one is to prove the interactive effect of supply chain integration (SCI) on performance and the other is to ascertain gaps in performance among levels of SCI. The population of this research is international freight forwarders and the collected data is used in testing hypotheses through various analytical methods such as factor analysis, Cronbach’s alpha, cluster analysis, ANOVA, MANOVA, ANCOVA, post hoc analysis and regression analysis. First, the interaction between internal integration and external integration improves customer performance and financial performance. The forwarders improve internal processes following information acquired from customers and the information is shared with logistics service providers, followed by high performance. Second, gaps in performance among levels of SCI are verified. Managers of the forwarders make strategic decision making on the basis of their recognition of environment and, as a result, the forwarders enjoy different performance.

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