Exploring linkages among external integration, supply chain risk reduction and performance outcomes: a study with Brazilian companies

Abstract

This paper explores practical linkages among external integration, supply chain risk reduction, and performance outcomes. Based on a survey questionnaire with 96 participants from industrial context of Brazil, we analyzed the total sample and we used the Wilcoxon-Mann-Whitney Test to comparing two sets of companies, that is, large companies (annual sales > US$ 5 millions), and non-large companies (annual sales US$ 1-5 millions). The findings indicate that companies with satisfactory levels of external integration have related lower supply chain risks. Our results also show that a higher level of external integration and risk reduction may lead to improved firm performance. Besides, we found that levels higher of external integration, risk reduction, and firm performance are perceived in large companies more than non-large companies. Finally, an important contribution of this paper lies in new avenues opened to research regarding benefits from supply chain integration on supply chain risks.