Absorptive capacity as a confounder of the process of supply chain integration

Purpose – The purpose of this research is to explore and advance on existing knowledge regarding supply chain integration and absorptive capacity. On the one hand, new elements, such as high-performance human resource practices and internal integration are proposed to foster absorptive capacity within the supply chain. On the other hand, the study proposes a model and hypotheses to analyze the moderating effect of absorptive capacity on the relationship between external supply chain integration and performance. Design/methodology/approach – Four hypotheses are formulated based on relevant literature. Data was collected from the horticultural marketing sector, using two different sources, a survey, and archival data. A total of 99 responses were analysed. Hierarchical multiple regressions were carried out to test the proposed hypotheses. Findings – The results confirm that high-performance human resource practices are a crucial element when trying to increase the level of absorptive capacity. In addition, the results show that absorptive capacity has a moderating effect on the relationship between supply chain integration and performance (both economic and financial). Absorptive capacity moderates the relationship between customer integration and economic performance. Originality/value – This study examines the potential causes for the differences that exist in a firm’s ability to develop absorptive capacity. Thus, on the one hand, high-performance human resource practices and internal integration are proposed as triggers of absorptive capacity, and on the other, absorptive capacity is proposed as a moderator in the relationship between supply chain integration and performance.