Supply chain integration and its relationship with the business performance of metal-mechanics small and medium-sized enterprises

Abstract

Small and medium-sized enterprises (SMEs) in Latin America demonstrate productivity levels of 32% and 43%, respectively, when compared to large companies. This lower productivity places them at a disadvantage in accessing the global value chain. According to the OECD/ECLAC (2012), factors that help SMEs improve their business performance include access to knowledge and information (from customers and suppliers) and the implementation of managerial systems, such as supply chain integration (SCI). This research examines the relationship between SCI and the business performance of metal-mechanics manufacturing SMEs in the metropolitan zone of Guadalajara (ZMG), Jalisco, Mexico. The findings indicate that supplier integration, internal integration, and customer integration have a positive and significant impact on business performance.