CONSTRUCTION OF RESEARCH VARIABLES
Integration Level of Tourism Supply Chain
Typically, there are three levels in implementation
of supply chain practices namely direct supply
chain, extended supply chain and an ultimate
supply chain (Mentzer et al., 2001). A direct supply
chain consists of a company, a supplier and a
customer involved in both upstream and/or
downstream of products, services, finances and/
or information. Nevertheless, an actual supply
chain process is broader consisting of company’s
suppliers (first tier) and their suppliers (second
tier) as well as company’s customers and their
customers. This is known as an extended supply
chain which has more chain members compared
to the direct supply chain. Beside these, an
ultimate supply chain includes all the
organizations involved in all the upstream and
downstream flows of products, services, finances
and information from the ultimate supplier to the
ultimate customer. In this level, there are also third
parties whom further facilitate the supply chain
operations through their services or assistances
in logistic, marketing, financial and so on. At this
level, all chain members including third parties
should be well integrated in order to improve the
overall effectiveness of supply chain.