ABSTRACT

Economic theory researchers were primarily concerned with consumer markets, and the main goal was to connect consumers to society using economic theory, social theory, and then organisational behaviour theory. Many business-to-business (B2B) managers believe that their customers act rationally and base decisions mostly on price; customer loyalty is not a consideration. Understanding the value sought by other members in a supply chain network is critical because better alignment of objectives across companies can lead to competitive advantage and superior operational and financial performance. Supply chain integration focuses also on inter-firm integration (i.e., a firm's relationships with its suppliers and its customers) as well as internal integration. This aspect is often referred to as 'cross-functional integration' and is usually dyadic in nature, referring to a process of interdepartmental interaction and collaboration in which multiple functions work together in a cooperative manner to arrive at mutually acceptable outcomes for their organisation.