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What determines the range of supply chain integration? Comparison of Korean and Japanese steel firms
Abstract
Supply chain strategies depend on competitive environments as well as the nature of the particular business. Consequently, supply chain integration (SCI) strategies should also be evaluated under the conditions a firm is facing. This paper examines the determinants of range of supply chain integration. By comparing the SCI strategies of Korean and Japanese steel firms, the paper shows that SCI should be evaluated in light of supply chain flexibility and uncertainty. Additionally, it is argued that although SCI with customers helps diminish demand uncertainty, it can also bring inflexibility, which is a customer 'lock-in' phenomenon.
