classic management problems of differentiation and integration (Lawrence & Lorsch, 1967). Lawrence and Lorsch originally
applied their concepts to an intra-organizational environment. In this paper, we extend their concepts to the inter-organizational
environment. Differentiation refers to the degree to which the various departments or subunits within the organization specialize
to perform different activities. In the supply chain context, differentiation refers to the degree to which various firms specialize to
perform different activities in the supply chain. Integration refers to mechanisms required to ensure effective coordination of
activities across, in our case, supply chain firms. The competing needs to differentiate and integrate give rise to pivotal supply
chain characteristics that, in turn, carry implications for effective HR systems and strategies