Customer integration in the supply chain: the role of market orientation and supply chain strategy in the age of digital revolution

Abstract

Ever increasing demand for customization and product diversity from the customers has made it important for firms to predict changes in the customer demand patterns and adopt accordingly. Customer integration allows firms to understand customers and respond to their particular needs in a better way. This study investigates the mechanisms through which customer integration is developed and affects supply chain performance. We develop a structural model underlining the role of market orientation and supply chain strategy as factors affecting the degree of customer integration. We also investigate the contingency role of marketing – supply chain integration in these relationships. We test the hypothesized model using data from Pakistani manufacturing organizations using structural equation modelling. Our results provide support for the study hypotheses except that marketing-supply chain alignment does not moderate the relationship between supply chain strategy and customer integration.