Abstract:

Purpose: The purpose of this study is to investigate on how supply chain integration can influence performance gains for firms in a supply chain management context primarily in the manufacturing industry in a developing country, Malaysia.
Design/Methodology/Approach: The study applies survey method and data is collected through questionnaire composed of dimensions of supply chain integration, firm performance and firm characteristics. Data is collected from 50 respondents, from manufacturing firms across Malaysia. The collected responses were analysed using descriptive analysis and multiple regressions.
Findings: Based on the firm-level data, the study found that supply chain integration generates significant and sustainable performance gains. This implies that due to the limited capability of manufacturers in developing countries in practicing higher order supply chain capability, these lower order supply chain integration played an important role. Interestingly, among the three different types of integration, the informational integration has a greater impact on performance.