The influence of supply chain integration on firm performance through lean manufacturing, green supply chain management and risk management

Abstract

The rapid development of technology has enabled companies to integrate internal and external partners working together in the supply chain network. Supply chain integration allows fast information to facilitate real-time and reliable decision-making. This study investigates the role of supply chain integration on firm performance through adopting lean manufacturing, green supply chain management, and risk management. The study surveyed manufacturing companies implementing ISO 14000 to represent green supply chain management and integrated information technology as a form of integration. The questionnaires were distributed using a Google form, and 93 valid responses were obtained. Data analysis employed a partial least square approach with SmartPLS software 4.1 version. The data processing results found that supply chain integration increased lean manufacturing by 0.684, green supply chain management by 0.451, and supply chain risk management by 0.333. Lean manufacturing companies using a continuous process control system and process improvements significantly improve green supply chain management by a path coefficient of 0.477, supply chain risk management by 0.206, and firm performance by 0.370. Green supply chain management significantly impacts supply chain risk management by a coefficient of 0.416 and firm performance by 0.189. Supply chain risk management with a system for detecting operational process risks and emergency procedures in overcoming changes in customer orders affects the increase in firm performance by 0.354. The practical contribution of research provides insight for practitioners to invest in information technology and adopt ISO 14000 implementation. Theoretical contributions in developing resources-based view theory in adopting green supply chain management and lean manufacturing.