The Effect Of Supply Chain Integration On Financial Performance

Cooperation and competition between enterprises is the eternal theme of dynamic co competition relationship and supply chain is reflected most vividly.On the one hand,enterprises and downstream suppliers cooperation can to some extent reduce the cost,information sharing,risk sharing,and thus enhance the competitiveness of enterprises;on the other hand,upstream and downstream suppliers as a relatively independent subject still exists in the supply chain competition,bargaining ability may lead to tilt the distribution of benefits,thereby affecting the financial performance of enterprises.First of all,this paper will supply chain integration is divided into two directions,respectively,from the core manufacturing industry,upstream suppliers,the core manufacturing industry——a study of supply chain integration from the perspective of downstream customers will be on the company's financial performance has a significant impact?Secondly,on this basis,this paper further study and analysis,the competitive intensity of different industries the enterprise,whether the impact of supply chain integration on inancial performance is heterogeneous?If have heterogeneity,so in the fierce market competition environment,the overall interests of the chain of internal supply is more to the upstream and downstream suppliers,or more in the core manufacturing enterprise?This paper collected 2013-2016 years of China's manufacturing industry listed company related data,and draw lessons from the existing literature practice,from nearly three years ago,five major suppliers and the proportion of the mean and variance of the natural logarithm of the ratio,to measure the degree of supplier integration and customer integration,influence of supplier integration and customer integration on the financial performance of enterprises.On this basis,this paper take the reciprocal of the Geffen Dahl index to evaluate the intensity of industry competition,to further study the moderating effect of industry competition on supply chain integration and enterprise financial performance relationship.In the control of the company and other characteristics,industry and year dummy variables,according to the research results,this paper draws the following conclusions:Overall,the supply chain integration of core manufacturing industry financial performance has a significant role in promoting.Specifically:(1)the upstream supplier integration can significantly promote the core manufacturing enterprise's total asset turnover and the rate of return on assets,but during the period of the enterprise cost has no significant effect;(2)the downstream customer integration can significantly reduce the rate of cost during the core manufacturing enterprise,improve the turnover rate of total assets and return on assets.In addition the degree of competition in the industry adjustment variables,the results show that:(3)the relationship between upstream suppliers,the relationship between the degree of competition in the industry of supplier integration and financial performance have no significant effect;(4)to the downstream customer relationship,the fierce external competition will weaken the customer concentration of positive impact on corporate financial performance.External competition is more intense,the integration of enterprise customers during the lower cost rate is smaller;more fierce external competition,customer integration of enterprise assets yield effect is smaller,but the relationship between the degree of competition in the industry of customer integration and total asset turnover rate has no obvious effect.The possible innovations and contributions are as follows:(1)the results of this study further enriches the research results of financial performance and supply chain integration in related fields,from the theoretical and empirical analysis,in order to improve financial performance and provides support for enterprises to strengthen supply chain management;(2)the degree of competition in the industry as a moderator join,from two angles to explore the relationship between supply and marketing,the competition of different industry,the impact of financial performance index provider integration to cost ratio,total asset turnover,return of assets is heterogeneity difference.