Introduction
Integration is frequently mentioned as a key characteristic of supply chainmanagement (SCM). Most SCM definitions relate to integration (Pagell, 2004; Stockand Boyer, 2009). Mentzer et al. (2001) discuss how integration is one of themanagement actions essential to implement SCM, while Lambert et al. (1998) state thatthe goal of integration is to enhance total process efficiency and effectiveness acrossmembers of the supply chain. Integration of supply chains can exist at both strategicand operational levels (Mentzer et al., 2000; Frohlich and Westbrook, 2001; Zailani andRajagopal, 2005). Globalization is one reason for organizations to integrate their supply chains.Globalization leads to increased demand for product variety as well as shorter productlife cycles and thus one can argue that competition is no longer between companies,but rather it is between supply chains. One stated benefit of SCM integration is theability to design products faster, with higher qualities and lower costs as compared to asingle company (Ajmera and Cook, 2009). Similar statements of the benefits ofintegration are made by a number of authors. External collaboration among supplychain partners leads to reduction of costs, stock-outs and lead-time (Gime´nez andVentura, 2005). Integrated supply chains result in lowered costs across the supplychain (Sundaram and Mehta, 2002). Costs can be minimized through establishingconsistent and predictable demand/-supply pattern (Sabath and Whipple, 2004).External (supply chain) integration leads to enhanced effectiveness and efficiency(Narasimhan and Kim, 2001). Integration contributes to significant improvementsin service effectiveness and cost efficiency (Richey et al., 2010). Finally, oneassumption seems to be that the more integration, the better (Stock et al., 1998;Gime´nez and Ventura, 2005).However, the concept ofSCMintegration does not come without problems. First of all,academic literature provide little, if any, empirical evidence of integration of supplychains beyond the dyadic level (Fawcett and Magnan, 2002; Vepsa¨la¨inen, 2003;Fabbe-Costes and Jahre, 2008). Lambert et al. (1998), for example, found no empiricalevidence of supply chains that were linked from the initial source of supply to theend-customer. In practice, there have been only minor integrated dyadic process links(Lambert et al., 1998).
