Supply chain integration: an empirical study on manufacturing industry in Malaysia

Abstract

Purpose The purpose of this paper is to attempt to identify the relationship between supply chain process integration and firm performance. Design/methodology/approach The dimension classification and measurement instrument of the framework adapted from the previous research focus on firm performance impacts of digitally enabled supply chain integration (SCI) capabilities. The study employed the quantitative method where convenience sampling and self‐administered survey questionnaires were sent to 98 conference participants in Malaysia. The research framework was pre‐tested using multivariate analysis. Findings The findings reveal that all three dimensions of supply chain process integration were statistically significant to firm performance. Furthermore, information flow integration shows a greater influence than physical and financial flow integration. Research limitations/implications This study focused on the manufacturing sector with respondents who were participants of a conference. Practical implications The results offer insights to supply chain management practitioners and policy makers on the importance of SCI and information technology (IT) infrastructure to improve the competitiveness of manufacturing industry in terms of operational excellence, revenue growth and customer relationship. Originality/value This study adds to the body of knowledge by providing new data and empirical insight on the relationship between SCI and firm performance specifically for the manufacturing industry in Malaysia. In addition, the findings may invite opportunities for comparative studies mainly with other industries as well as other developing and developed economies.