Strategic integration in industrial distribution channels: Managing the interfirm relationship as a strategic asset

This study investigates the strategic role of interfirm relationships through the concept of strategic integration. Following the conceptual development of strategic integration, the author reports a study of its antecedents and performance outcomes. Uncertainty was expected to have contextual effects in the development and outcomes of strategic integration in industrial distribution channels. A survey of industrial equipment distributors revealed that dependence, flexibility, continuity expectations, and relationship age encouraged the distributor's strategic integration of its supplier relationship. In addition, strategic integration enhanced distributor financial performance. However, uncertainty did not play a role in the distributors' strategic integration of their supplier relationships nor its effect on performance. Jean L. Johnson is an associate professor in the Department of Marketing, Washington State University