Supply chain integration and economic performance: empirical evidence from a developing country

Abstract

PurposeThis study seeks to investigate the impact of supply chain integration (SCI) practices on economic performance in Vietnamese enterprises.Design/methodology/approachBased on data collected from 144 Vietnamese enterprises, this study employs partial least squares path modeling to analyze the direct and indirect relationships among external integration, information integration, process integration and economic performance.FindingsAnalytical results indicate that of the three SCI practices, external integration has a significant and positive impact on economic performance. Process integration and information integration, on the one hand, reveal insignificant direct impact on economic performance, and on the other, show significant indirect effect on economic performance through external integration.Originality/valueThis study sheds new light on the contribution of SCI to economic performance in developing economies and offers suggestions for not only local management but also foreign investors on the efficient allocation of resources to achieve higher economic performance.