Business Administration, Business Process & Supply Chain Management, Degree Project (master), 15 higher education credits, 4FE06E, Spring 2013 Authors: Doruntina Pacarizi and Ya-Hui Hsu Tutor: Petra Andersson Title: Conflicting Goal and its Impact on the Level of Supply Chain Integration between Supply Chain Partners in the Automotive Industry – From Manufacturing SME’s Perspective Background: Supply chain integration assists SMEs to improve their operational performance, however the existing theories in supply chain integration are mostly from the LEs perspective. Therefore this thesis chose to focus on the level of supply chain integration from manufacturing SMEs perspective. Nevertheless supply chain integration is not simple due to conflicting goal, which exists between supply chain partners. Based on previous knowledge, the level of supply chain integration is affected by conflicting goal, which exits between supply chain partners. We believe that this is based on how the conflicting goal has been managed. Purpose: The purpose of this thesis is to obtain an understanding if the level of integration in the automotive industry between the manufacturing SME and its customer is affected by how the conflicting has been managed. Method: This thesis is a multiple case study and was conducted with a deductive approach. The empirical findings were gathered through qualitative interviews with semi-structured interview guides. Conclusions: The conclusions of this thesis are that the level of supply chain integration, which exists between manufacturing SME and its customer, is low/medium. Furthermore, the conflicting goal, which exists between these partners, are that the demand of delivery and volume flexibility, storage flexibility, demand of quality level and the relatively high manufacturing complexity as well as downstream complexity. Finally, the result of this thesis shows that the level of supply chain integration is affected by how the conflicting goal has been managed.