The mediating role of supply chain integration and agility on SMEs performance

Abstract

Supply chain management (SCM) is a major component of competitive strategy to enhance a firm’s performance. Effective firm performance through supply chain antecedents such as supply chain integration (SCI), supply chain agility (SCA), information technology (IT) infrastructure and trust has become a potentially valuable way of securing competitive advantage and improving the firm’s performance. Despite the fact that determining the performance through antecedents of SCM is considered a unique methodology especially in small and medium sized enterprises (SMEs), theoretical and comprehensive studies on a firm’s performance through the methodology are very limited. This study addressed the lack of empirical studies by developing a comprehensive model to examine relationships between some antecedents of SCM such as trust and IT infrastructure, and SCI and SCA on a firm’s performance. Quantitative methodology using questionnaires was adopted to collect data for the constructs proposed in the theoretical model. Using a cross-sectional survey method, data were collected from 265 suppliers in the Iranian automotive industry identified through the stratified sampling method. Hypothesized relationships in the study were examined using partial least squares structural equation modelling (PLS-SEM) technique. The results highlighted the positive effects of antecedents of SCM on a firm’s performance, and SCI and SCA have a mediating role between IT infrastructure and a firm’s performance. In addition, the results of the study have adhered to the resource-based theory (RBV) and resource dependence theory (RDT) underlining the role of trust as an intangible resource of a firm’s performance. Moreover, findings of this study have contributed theoretically to SCM by exhibiting additional evidence of the different effects of SCI and SCA on a firm’s performance. Finally, the study could be used as guide to encourage managers to focus on supply chain antecedents and intangible resources in organizations such as the Iranian automotive industry.