Empirical analysis of the effects of supplier selection and integration on customer satisfaction and business performance

There has been an increased focus on supplier selection and integration in the field of international operation management in recent years, which are the core of supply strategies. Based on the database of International Manufacturing Strategy Survey (IMSS) 2003, an empirical study is carried out to examine whether different supplier selection criteria and integration mechanisms can improve customer satisfaction (CS) and business performance (BP). The data analysis shows that supplier selection based on performance and collaboration have direct or indirect positive effects on CS and BP; the effect of supplier selection based on unit price on CS and BP is not statistically significant; information sharing and system coupling, as the major mechanisms of supplier integration, have positive effect on CS and BP significantly. The findings of this research have theoretical and practical implications for enterprises to choose and adjust supply selection criteria and supply integration practice.