Optimizing manufacturing firms' operational performance through supply chain integration: Moderating effect of supply chain complexity

Abstract

This study investigates the relationship between integration, complexity, and operational performance in the industrial sector of Saudi Arabia. The sample comprised manufacturing firms in Saudi Arabia, and data were collected through the distribution of questionnaires. Supplier integration, customer integration and internal integration were examined as factors influencing operational performance, with supply chain complexity considered as a moderating variable. The findings highlight the positive impact of integration on operational performance in the Saudi Arabian industrial sector. The measurement scales used in the study demonstrated high reliability and internal consistency. Discriminant validity analysis confirmed the distinctiveness of the constructs. Structural model analysis revealed significant positive relationships between customer integration, internal integration, supplier integration, supply chain complexity and operational performance. The results emphasize the importance of fostering integration within and outside the organization to enhance operational performance. Furthermore, the moderating effect of supply chain complexity suggests that the relationship between integration and operational performance varies according to the complexity of the supply chain. Overall, this study contributes to the understanding of integration, complexity, and operational performance in the context of the Saudi Arabian industrial sector. The findings have practical implications for industrial companies, providing insights into strategies for improving operational performance through integration initiatives and consideration of the unique characteristics of the supply chain.