Exploring The Role of External Integration in Shaping Supply Chain Capabilities

Purpose: This study investigates how external integration, supplier and customer integration, shape supply chain capabilities in Indonesian ‎manufacturing firms, using the Dynamic Capability View as the theoretical foundation.‎ Methodology: A quantitative approach was applied using survey data collected from 115 supply chain professionals. The proposed model ‎was analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM).‎ Findings: Supplier integration significantly enhances sensing and seizing capabilities, while customer integration shows no significant effect. Neither integration type influences reconfiguration capability, highlighting the role of internal organizational mechanisms in capability ‎development.‎ Originality: This study clarifies how upstream and downstream integration contribute differently to the formation of dynamic capability. It ‎extends theoretical understanding of supply chain capability development in emerging economies and offers practical guidance for strengthening cross-boundary collaboration.