Abstract

Supply chain management (SCM) aims to provide the coordination and execution of planning and decision-making in multi organization-wide production and distribution. The advancement of information technology and the globalization of market promote SCM integration. Information sharing has become a major driver of competitive advantage in SCM. In this research, we aim to analyze the influence of SCM integration on firm performance and the role of information sharing between SCM integration and firm performance. Of the 750 questionnaires posted, a total of 218 questionnaires were collected after one follow-up. A total of 199 questionnaires were analyzed after 19 questionnaires were eliminated due to largely missing values. We used structural equation modeling technique to validate the causal relationship between SCM integration, information sharing, and firm performance. The results suggest that improved SCM integration both within the focal company (intra-organization) and across companies (inter-organization) enhances firm performance positively. Information sharing acts as a mediator between the SCM integration and the firm performance. Intra-organization SCM integration is positively related to inter-organization SCM integration, namely, SCM integration with suppliers and customers. The results suggest that internal integration of SCM significantly influences external integration with customers and suppliers. The result also shows that supply chain integration has a positive influence on firm performance and information sharing positively impacts firm performance as well.

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