Knowledge Based View of Supply Chain Integration

The aims of this paper are to empirically test the relationship between knowledge sharing practices within and between trading partners as a framework for integration, and to test for the effect of these practices on firm performance. Data was collected from 418 organizations in the manufacturing industry in Australia. Structural equation modelling approach to data analysis was used. It was found that the three knowledge related constructs (internal knowledge integration, knowledge integration with customers, knowledge integration with suppliers) were strongly inter-related, providing a case for knowledge based integration of firms with their trading partners. Further, these three exogenous constructs collectively explained about a third of the variance in the endogenous construct (firm performance). The relationships identified provide support for the efficacy of knowledge based collaboration. Managers can use this as a way to conceptualize how their firms can develop internal integration and collaborative relationships with their trading partners. Category of paper: Research paper.