Abstract:
In the current competitive environment firms are not only working on managing their
internal affairs but also they are working on identification of other relevant factors out of
the organization in order to have appropriate reaction while facing them. Supply Chain
Management (SCM) has been primarily concerned with the integration of processes and
activities both within and between organizations. The concept of Supply Chain
Integration (SCI) is based on documented evidence that suggests that much of the waste
throughout businesses is a consequence of fragmented supply chain configurations.
However, there is also evidence to suggest that the achievement of higher levels of intra
and inter-firm integration leads to better and improved performance. The main objective
of this study is to investigate the impact of supply chain integration on performance. This
study conceptualizes and develops three dimensions of SCI i.e. supplier integration,
internal integration, customer integration and tests the relationship between SCI and
performance. Although financial performance has been used as a key factor to measure
business performance, however, numerous studies have pinpointed the limitations of
financial performance which may not adequately describe firm’s performance. Whereas
in operational performance factors like flexibility, speed, quality, costs and competitive
advantage are used to measure business performance. In this study operational
performance is examined through service quality and competitive advantage, which
shows other factors to measure performance of a business. In Pakistan being a
developing country, retail industry can help our economy to grow further as it has much
potential but the industry is not as mature as it should be. This is due to lack of effective
integration between all the participants of supply chain which leads to poor performance.
For this purpose quantitative research was conducted in retail firms of Islamabad and
Rawalpindi with the sample size of 200. The results so obtained and compiled show that
supply chain integration has positive and direct influence over performance.
