Impact of Supply Chain Integration on Supply Chain Performance: Moderating Role of Supply Chain Flexibility.

Abstract

Modern world is more uncertain than ever before. Organizations need to identify the capabilities needed to gain competitive advantage under these uncertain conditions. Supply chain integration is such a capability that may help a firm achieve competitive advantage under uncertain market conditions. The current study evaluated the multidimensional role of supply chain integration in supply chain performance. The moderating role of supply chain flexibility between different dimensions of supply chain integration and supply chain performance was also considered. Based on the data gathered from Pakistani manufacturing firms, structural equation modeling (SEM) was used to test the hypothesized model. The results showed that internal integration and supplier integration represented a positive impact on supply chain performance. However, the moderating role of supply chain flexibility was determined to be significant only in the case of customer integration – supply chain performance relationship.