THE MEDIATING ROLE EFFECT OF INTERNAL INTEGRATION BETWEEN LONG TERM RELATIONSHIP WITH SUPPLIERS AND CUSTOMERS AND BUSINESS PERFORMANCE IN TURKEY ICI 500 ENTERPRISES

Abstract

Goal: This paper aims to demonstrate the mediating effect of internal integration in the relationship between long-term connections with customers/suppliers and operating per-formance. Businesses that want to improve operating performance often try to establish long-term relationships with customers and suppliers. However, at this stage, they neglect the internal integration process. Design/Methodology/Approach: Exploratory and empirical data were collected from Tur-key’s largest 500 manufacturing firms. Factor analyses were performed to verify the valid-ity and reliability of the data set and scales. Then, the relationships between the variables were tested with a hierarchical regression model. Results: The findings show that the internal integration variable has a full mediating effect on the relationship between long-term relationships with customers/suppliers and the operating performance variable. Limitations of the investigation: This research is based only on large industrial enterpris-es, and the results can only be interpreted in the context of emerging economies. Practical implications: When businesses try to establish long-term relationships with customers and suppliers, they often neglect the internal integration process, making the long-term relationship processes ineffective. This research focuses on internal integration and emphasizes its impact on the relationship between variables. Originality/Value: This study on the integration of supply in the context of Turkey’s largest production company is the first and original research. These results for manufacturing enterprises in developing countries with a similar economic structure to Turkey are expected to provide practical benefits.