Absorptive capacity as a confounder of the process of supply chain integration

TLDR: The results confirm that HPHRP are a crucial element when trying to increase the level of AC and show that AC has a moderating effect on the relationship between SCI and supply chain performance (both economic and financial).

Abstract: Purpose The purpose of this paper is to explore and advance on existing knowledge regarding supply chain integration (SCI) and absorptive capacity (AC). On the one hand, new elements, such as high-performance human resource practices (HPHRP) and internal integration (II) are proposed to foster AC within the supply chain. On the other hand, the study proposes a model and hypotheses to analyze the moderating effect of AC on the relationship between external SCI and supply chain performance. Design/methodology/approach Four hypotheses are formulated based on relevant literature. Data were collected from the horticultural marketing sector, using two different sources, a survey and archival data. A total of 99 responses were analyzed. Hierarchical multiple regressions were carried out to test the proposed hypotheses. Findings The results confirm that HPHRP are a crucial element when trying to increase the level of AC. In addition, the results show that AC has a moderating effect on the relationship between SCI and supply chain performance (both economic and financial). AC moderates the relationship between customer integration and economic performance. Originality/value This study examines the potential causes for the differences that exist in a firm’s ability to develop AC. Thus, on the one hand, HPHRP and II are proposed as triggers of AC, and on the other, AC is proposed as a moderator in the relationship between SCI and performance.