Effects of supply chain integration and innovation dimensions on business performance of Jordanian manufacturing firms
AuthorsBwaliez, Omar Mohammad
supply chain integration
Subject Categories::N120 International Business studies
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AbstractThe purpose of the current research is to examine the effect of supply chain integration (SCI) in terms of internal integration, supplier integration, and customer integration on business performance (BP) directly, and indirectly through the mediating effect of innovation in terms of product innovation, process innovation, marketing innovation, and management innovation in the context of Jordanian manufacturing firms. Based on the resource-based view (RBV) and relational view (RV), a research model was developed representing the proposed hypotheses about SCI dimensions, innovation dimensions, and BP. To test this model, survey data were gathered from 292 Jordanian manufacturing firms belonging to different industry types. SmartPLS 4 software was used to test the validity and reliability of the research constructs, and to conduct partial least squares structural equation modeling (PLS-SEM) to test the proposed research hypotheses. Regarding the direct relationships between SCI and BP, the results indicated that internal integration and supplier integration directly and positively affect BP, while customer integration does not. For the innovation-BP relationships, the results indicated that only product innovation and management innovation directly and positively affect BP. For the SCI-innovation relationships, the results indicated that internal integration positively affects all innovation dimensions. However, supplier integration positively affects all innovation dimensions except process innovation, and customer integration positively affects all innovation dimensions except management innovation. Regarding the indirect relationships, the results showed that internal integration indirectly affects BP through both product innovation and management innovation, and customer integration indirectly affects BP through product innovation only, while supplier integration does not have an indirect effect on BP through any one of the innovation dimensions. This research addresses an evident gap in the available literature regarding the effects of SCI dimensions on innovation dimensions and BP. This research extends the current literature by contributing the discussion of a comprehensive model underlining the different mediating roles of innovation dimensions on the relationships between SCI dimensions and BP. This research also acquires additional value as a result of conducting it in a developing country, Jordan. In general, manufacturing firms in developing countries face more difficulties related to the supply chain than those in developed ones; these challenges can limit the innovation and subsequently BP of manufacturers in developing countries. This research informs manufacturers interested in improving their BP to focus on establishing both internal and supplier integrations. This research also provides theory-driven and empirically proven explanations for manufacturers to differentiate the effects of internal and external integration efforts on different innovation dimensions and subsequently BP. In developing countries in particular, manufacturers need to pay substantial attention to internal integration, as it is the key antecedent of product and management innovations and subsequently BP. Moreover, manufacturers should be aware of the essential role of customer integration in improving product innovation and subsequently BP. Thus, they should make long-term plans to integrate their internal units and functions, incorporate their key external customers, and reconsider their current relationships with their suppliers.
CitationBwaliez, O.M. (2023) 'Effects of Supply Chain Integration and Innovation Dimensions on Business Performance of Jordanian Manufacturing Firms'. PhD thesis. University of Bedfordshire.
PublisherUniversity of Bedfordshire
TypeThesis or dissertation
DescriptionA thesis submitted to the University of Bedfordshire, in partial fulfilment of the requirements for the degree of Doctor of Philosophy.
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