Supply chain strategies and practices depend on not only the nature of the business, the competitive environment, technological intensity of the product, but also product and market characteristics. Consequently the effect of supply chain integration should be evaluated, in the light of a company’s market and product strategies. The premise of this paper is that coordination between marketing strategies (diversification) and manufacturing strategies (SCM) will lead to better performance than when the two strategies are pursued independently. The particular interface between marketing and manufacturing that this paper investigates is the interaction effect of diversification and SC integration strategies on SCM performance and firm performance. We further hypothesize that coordinated SCI and diversification strategies constitute matched strategy pairs that are associated with higher performance compared to unmatched strategy pairs. This paper, by ANOVA and moderated multiple regression, examines the effect of the interaction between supply chain integration and market/product diversification strategies on a firm’s competitive performance and supply chain performance. Specifically, by comparing the main effect of diversification and interaction effects of diversification and supply chain integration on performance, this paper shows that coordinated use of supply chain integration and diversification has a significant effect on both SCM performance and firm performance. Further, the results derived a typology of matching set of diversification strategies and SC integration types that could lead to beneficial impact on performance. The results of this study can be useful in integrating supply chain management (SCM) strategy into the overall corporate strategy. Results of this study make several theoretical contributions. First, strategy literature has not shown conclusively that there is a linkage between diversification and performance. Researchers have offered different reasons for the lack of this relationship. We started with the hypothesis that SCI strategies of a firm might influence this relationship. We have shown that it does. Second, having shown that the interaction effect between diversification and SC integration is statistically significant, we then derived a set of “compatible” diversification and SC integration strategies that could lead to beneficial impact on performance. This set can be construed to define a typology of matching set of strategies. Third, we were able to identify how these compatible strategies influence different competitive performance measures. This suggests that, depending on which competitive performance measures the firm is pursuing, there is a matched strategy pair that is most appropriate. Fourth, in order to analyze potential differences in hypothesized relationships in Korea and Japan, a separate analysis was done for the samples from the two countries. The separate analyses done on Korean and Japanese firms suggested that “size effect” might be a reason for the differences in the relationship between diversification and firm performance in the two samples. The results have some practical implications for managers. They suggest that contingent strategy combinations must be considered for enhancing performance. As can be seen in table 9, both Korean and Japanese results indicate that product diversification strategy leads to high performance in sales growth and market share growth, when it is combined with internal integration strategy (in the SC domain), whereas the results show that it leads to high performance in profitability and cost reduction when combined with supplier based integration strategy. Both these matched pairs of strategies can be used as contingent strategies by firms employing product diversification strategy. For firms employing market diversification strategy, it must be paired with either external integration or customer based integration strategies (in the SC domain) depending on firm level competitive priorities. The results also suggest that strategic cooperation between a buying firm and its supplier should recognize the synergies in using internal integration and supplier based integration strategies in order to increase the effect of product diversification strategy being pursued by the firm. Similarly, cooperation between firms using external integration and customer based integration strategies may leverage the effect of pursuing a market diversification strategy. However, it should be noted that strategic cooperation between a buyer and a supplier may not guarantee the beneficial effects of each diversification strategy. In the long run, firms should make an effort to improve the structure of the entire supply chain through continuous investments in enhancing integration and strategic cooperation. This interface between marketing and manufacturing strategies (i.e., diversification and SCI strategies) may make it possible for a firm to concurrently pursue different performance objectives having a trade off relationship.