Relationship between downstream integration, performance measurement systems and supply network efficiency

Downstream integration is a key managerial area to improve performance in supply networks. Though most studies agree that downstream integration positively influences performances, the literature also reports cases of failures in achieving significant improvements. This evidence suggests that some factors may act as moderators on the downstream integration-performance relationship. This paper analyses the impact of downstream integration on supply network efficiency and the moderating effect on this relationship of supply network performance measurement systems. Data from a sample of 200 manufacturing plants settled in several countries around the world demonstrate that this moderating effect exists. Therefore, in order to strengthen the impact of downstream integration on supply network efficiency, managers should combine interventions on downstream integration and supply network performance measurement systems, rather than investing and focusing on downstream integration only.