Customer‐supplier integration forms in the air‐conditioning industry

Purpose This paper explores what suppliers and customers do in order to integrate their operations across the supply chain. It also identifies on what contextual factors these specific CSI practices are contingent. Design/methodology/approach The paper uses the multiple case study methodology as a basis for theory formulation. Insights from nine cases of OEM‐supplier relationships in the Italian high precision air conditioning industry are used to address the research questions and formulate theoretical propositions. Findings The paper develops four theoretical propositions derived from a framework that identifies four CSI forms contingent on two contextual variables – the value impact of goods purchased from each supplier and the degree of purchasing goods customization. Research limitations/implications This paper provides a framework that advances the understanding of effective supplier relations management in two ways. Firstly, it gets over the traditional dichotomy between arm's length relationships and strategic partnerships by identifying a more articulated typology of CSI forms. Secondly, it characterizes each of the four CSI forms in terms of the practices buyers and suppliers apply to manage four key business processes. Practical implications The paper provides a template to configure integration in customer‐supplier relations and suggests the different mix of integrative practices business partners should use in diverse supply chain environments. Originality/value The proposed framework improves existing theory that either considers one single aspect of customer‐supplier relations (i.e. pricing, logistics, or new product development) or interprets interfirm collaboration as a single dimension phenomenon.