The Impact of Supply Chain Management Integration on Operational Performance

Abstract

The purpose of this study is to confirm the research model related to the impact of supply chain management (SCM) integration on the operational performance based on the previous researches. These studies suggest that SCM integration plays a critical role in generating performance gains for firms. In the study, three constructs are extended, i.e. the information technology infrastructure integration, SCM process integration, and operational performance. A number of 146 large manufacturing companies in Indonesia were selected purposively as the samples. Questionnaires were distributed through email survey, while data were analyzed by structural equation modelling with Partial Least Square software to analyze the causal relationship among variables.  The study found that information technology infrastructure integration does not influence significantly to supply chain process integration. Furthermore, supply chain process integration influences significantly to operational firm performance.