International Journal of Strategic Decision Sciences, 4(4), 85-105, October-December 2013 85 Copyright © 2013, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. ABSTRACT One of the critical success factors in supply chain management is Internal Integration within the frms. In this study the authors have examined this construct in greater depth and have developed an improved measurement model grounded in systems and contingency theories. The authors have validated the model by conducting a large scale empirical study and by collecting data from 154 buyer-supplier dyads. The authors have established the construct validity by using refned Confrmatory Factor Analysis Multi-Trait Multi-Method Approach. The authors have used multiple perspectives from felds such as operations management, information systems management, and inter-organizational relationship management to present a richer construct. An Improved Measurement Model for Internal Integration: A Systems and Contingency Approach Abirami Radhakrishnan, Department of Information Science & Systems, Morgan State University, Baltimore, MD, USA Sheela Thiruvadi, Department of Accounting & Finance, Morgan State University, Baltimore MD, USA Dessa David, Department of Information Science & Systems, Morgan State University, Baltimore, MD, USA Keywords: Confrmatory Factor Analysis (CFA) Multi-Trait Multi-Method Approach, Construct Validity, Empirical Research, Internal Integration, Supply Chain Management INTRODUCTION Supply Chain Integration (SCI) has received increasing attention among academicians and practitioners alike in recent years (Frohlich & Westbrook, 2001; Vickery et al., 2003; Rozen- weig et al., 2003; Droge et al., 2004; Swink et al., 2007; Flynn et al., 2010; Lin et al., 2010; Zhao et al., 2011; Schoenherr & Swink, 2012). The literature broadly defines SCI as the extent to which a firm is strategically interconnected and aligned to its supply chain partners (Jayaram et al., 2010; Schoenherr & Swink, 2012). SCI consists of the integration of internal functions, as well as the integration with customers and suppliers (Zhao et al., 2011). Despite the increas- ing research interests in SCI, our understanding of the individual dimensions is very limited. While some studies focuses on dimensions such as customer and supplier integration (Cousins & Menguc, 2006; Homburg & Stock, 2004; Koufteros et al., 2007), others use omnibus DOI: 10.4018/ijsds.2013100106