Supply chain integration, organizational performance and balanced scorecard: An empirical study of the banking sector in Jordan

Abstract

This paper examines the impact of supply chain integration on organizational performance in Jordanian banking sector. Supply chain integration is divided into two categories: Customer and internal integration. Organizational performance comprises of the following perspectives: Customers, internal processes, organizational capacity and stewardship. The results demonstrate that supply chain integration is significantly related to organizational performance. Evidence of the improved organisational performance is also provided in the feedback from some of the surveyed banks. Internal integration impacts all four organizational performance dimensions; however, customer integration has impact only on customer perspective. The results suggest that improved customer involvement could help develop the banks’ performance. Primary data was collected by using a questionnaire at Jordanian banks. The research model was tested using data from the sample (n=112) of nine banks in Jordan. The data was analysed by means of exploratory factor analysis. The results of the multiple regression analysis show that supply chain integration effects significantly organizational performance.