ASSESSING THE EFFECTIVENESS OF INTRA-FIRM SUPPLY CHAIN INTEGRATION PRACTICES OF CONSTRUCTION FIRMS IN NIGERIA

Abstract

The ultimate aim of supply chain integration is to achieve effective external integration between firms in a supply chain, and the starting point for this broad integration is intra-firm integration. However, the extent to which functional units/departments integrate within and amongst them and the effectiveness of the integration is not fully understood. This paper reports the results of a study carried out in three purposively selected large construction organisations that operate at national level, with the aim of assessing the extent of, and the effectiveness of their intra-firm integration. Descriptive statistics was used to analyse the data collected across the three organisations. Findings indicated that every department engaged in internal integration practices (communication and information sharing, coordination and resource sharing, and organisational relationships) in varying proportions, and the effectiveness of the practices equally varied amongst the departments. 47% of the departments indicated that the extent of integration within and between them was high and effective, 22% indicated a moderate level and somewhat effective integration, while 31% indicated that the extent of their integration was low and ineffective. It is concluded that internal integration, when effectively done within and across functional units and departments, would enhance the internal operational efficiency and the external integrative capabilities that would increase competitive performance of organisations.