1 SUPPLY CHAIN INTEGRATION AND SUSTAINABLE COMPETITIVE ADVANTAGE: COMPETING THROUGH PARTNERSHIP-BASED COORDINATION Lina Anatan Fakultas Ekonomi Universitas Kristen Maranatha Bandung Jln. Prof. Drg. Suria Sumantri, MPH no. 65 Bandung 40164, INDONESIA Email: lina.anatan@eco.maranatha.edu ; lina_anatan@yahoo.com ABSTRACT This paper discusses a literature review concerning the importance of supply chain integration through partnership based coordination to achieve sustainable competitive advantage. Today’s business environment characterized is by faster technological development, shorter product life cycle, and more intense global competition. To become more responsive to the needs of customer and market requirement, companies need more than speed delivery and good quality product. It is also required the integration in the supply chain. Supply chain integration links a firm with is customer, supplier, and other channel members by integrating their relationships, activities, functions, process, and locations. This integration supports the current movement from the conventional relationship to cooperative, long term business partnership and strategic alliance. Companies also need to focus on the investment of information technology as organization sought information technology intensive to enhance operating efficiency and productivity across functional areas of the organization. Supply chain integration competitiveness and competitive advantage seen as the adoption of specific solution than a continuing process of matching needs and means by learning. The importance of developing learning capabilities and embedding them within the organization is an important aspect to achieve competitiveness. Keyword: supply chain integration, partnership-based coordination, information technology, sustainable competitive advantage 1. INTRODUCTION Today’s business environment characterized is by faster technological development, shorter product life cycle, and more intense global competition. This new competitive landscape force organization to actively acquire new way to achieve competitive advantage since a firm competitive advantage is now more dependent on operating efficiency and productivity across functional areas of the organization. Global competitors operating in global market almost always tend to have world class performance. Having the right product available in the right place, at the right time, enable the company to compete in this volatile market place. However the resources competencies required are often difficult to mobilize and retain by single company. Therefore, it is imperative for companies to cooperative and leverage complementary core resource competencies through partnership-based coordination (Resse, 2005). A change in the way of serving and providing customer needs and wants emerge as a result of economy globalization. The role of manufacturing companies has changed from supplying domestic market to supply international market carried out in business network on supply chain. Williamson et al. (2004) defined supply chain management (SCM) as the management of interconnected of organization which relate to each other to upstream and downstream linkage between the different process that produce value in the form of product and service to the ultimate customer.