Can systems integration lead to improved performance? The role of strategic alliances

• DOI: 10.1016/j.indmarman.2021.03.002
• Publication Date: 2021-03-27T02:36:17Z
• Authors: José-Mauricio Gal...; Ronaldo C. Parente; M. Berk Talay
• Keywords: 9. Industry and infrastructure; 0502 economics and business; 05 social sciences; 8. Economic growth

Abstract Despite growing research attention to systemic products and systems integration, there is still a dearth of research on the performance benefits that firms can attain from increased systems integration capabilities. We address this research gap using a longitudinal sample of 245 first-tier automotive suppliers and find that an increased systems integration capability positively affects financial performance. By considering the crucial role of manufacturing alliances, we also find evidence that vertical alliances with buyers positively moderate the relationship between systems integration capabilities and performance, while horizontal alliances have a negative moderating effect. These results contribute to the dynamic capabilities literature by providing empirical evidence that systems integration capability is a relevant predictor of firm performance, and expands the current understanding of how system manufacturers should manage their business-to-business (B2B) relationships.