Supply Chain Integration: Does Organizational Culture Matter?

The purpose of this quantitative correlational study was to identify relationships between organizational culture types, supply chain integration, and firm performance. The study process included obtaining data from 201 supply chain professionals and procurement specialists working in various companies throughout the United States. Supply chain integration data and firm performance derived from results obtained from participants completing a 5-point Likert-type scale survey. The Organizational Culture Assessment Instrument was used to determine organizational culture types. Results indicated a significant correlation between supply chain integration and firm performance. All three integration variables, customer, supplier, and internal were significantly and positively correlated with total integration and firm performance. Results also indicated that supply chain integration increased when organizational flexibility was present. Unexpectedly, both clan and adhocracy cultures were significantly correlated to supply chain integration and firm performance. The results from this study added to literature and provided supply chain managers practical knowledge of the significant influence organizational culture can have on supply chain integration performance. Results of this study substantiate that a flexible organizational structure, as shown in the clan and adhocracy cultures, increases supply chain integration and firm performance. As competitive forces intensify, the need for firms to develop a flexible organizational structure to leverage supply chain integration practices will increase. The results of this research could provide organizational leaders more insights into increasing supply chain integration efforts and improved firm performance through flexible culture alignment.