Industry-specific competition exists between supply chain networks. Gomes-Casseres (1994) referred to this phenomenon as group vs. group competition. Supply chain integration does not occur in a vacuum. Based on transaction cost theory and social network approach, this study explains how a supply chain can become a well-integrated spider-web network through governance mechanisms. The results of a linear regression analysis of 55 central firms' surveys which are listed in Taiwanese Central-Satellite Production System indicate that selecting partners, managing rent appropriation, creating shared value and relational norms have positive effects on supply chain integration and further in transforming into a spider-web network, whereas monitoring the partner's contributions and behavior has no significant effect.