The impact of organisational culture on supply chain integration (case study: industrial parks of Qazvin province)

Abstract

The increasing emphasis on integration among members of a supply chain has led to new mechanisms to help firms coordinate the flow of products, services, and information through the supply chain. Based on organisational culture theory measured by the competing values framework (CVF), this study developed a theoretical model to explore the effect of organisational culture on three types of supply chain integration efforts: 1) internal; 2) customer; 3) supplier integration and firm performance. However, the supply chain integration has positive effect on performance, organisational culture will be able to reduce or increase this effect. This research performed based on structural equation modelling (SEM), in 134 manufacturing firms in Qazvin province industrial parks. Collected data were analysed by partial least square (PLS) method in order to evaluate the relationship between variables and their impact on each other. Empirical results confirm that flexibility-stability orientation of culture does not significant impact on supply chain integration. Organisational performance is positively and significantly affected by supply chain integration especially among internal integration and business performance. We expect that the results of this study help better understand supply chain integration practices and managers take advantages of it.