The Impact of Supply Chain Integration on Operational Performance: An Empirical Study

Abstract

Manufacturing companies nowadays are under constant pressure to deliver high-quality products at the lowest possible prices within the shortest possible time even under the most unpredictable economic situations. Supply chain integration has a critical impact on operational performance. Nevertheless, this impact has not been consistent and showed mixed results throughout the literature. This study aimed to examine the impact of technology management in terms of supply chain integration on operational performance. The research model was empirically validated using 317 valid survey responses from the Jordanian food and beverage industry, which were subjected to quantitative research design and regression analysis. Results showed that supply chain integration had a direct significant impact on operational performance, and all three dimensions of the theoretical model contributed significantly to operational performance. This study suggests the critical need to create and implement proper supply chain integration strategies and technologies, both internally and externally, to enhance their performance and competitive advantage. Moreover, future research needs to extend this work to other industries, cultures, and nations, while investigating the moderating or mediating effects of other key variables along with using alternative sampling strategies.

How Do Supply Chain Integration and Product Innovation Capability Drive Sustainable Operational Performance?

“…Flynn, Huo [7], Gimenez and Ventura [63], Simbarashe, Charumbira [64], and Srinivasan and Swink [38] found a positive affiliation between II and OP. These scholars propose that to optimize process and product design, II assists the alliance of various departments, thus improving quality and reducing cost [39,65]. Furthermore, to improve production capacity and delivery performance, II enables knowledge sharing across functions by breaking down functional obstacles [7,37,66].…”

“…Actively involving customers in product development, service design, decisionmaking processes, forecasting, and planning activities allows organizations to tailor their operations accordingly [71]. It results in more efficient operations, reduced inventory costs, and minimized stockouts [65]. Organizations can identify potential issues and make necessary adjustments by engaging customers in pilot programs and feedback sessions.…”

“…Organizations can streamline procurement, production scheduling, and inventory management by integrating suppliers into their supply chain processes. Such value-added coordination leads to reduced lead times and increased overall supply chain efficiency [65]. Also, to ensure consistent product quality and adherence to specifications, organizations implement supplier quality management programs and integrate suppliers into quality control processes.…”

Influence of Supply Chain Integration, Information Sharing, and Supplier Relationships on Operational Efficiency of Manufacturing Companies

“…In today's globalized market, the competitiveness of organizations is heavily influenced by their supply chain strategies (Masa'deh et al,2022). Supply chain integration, which involves the seamless coordination of activities across the supply chain, has become critical in ensuring the timely delivery of products and services (Ali et al,2023).…”