Abstract

This study aims to contribute to the current body of knowledge on Supply Chain Integration (SCI) in small and medium-sized enterprises (SMEs), focusing specifically on the Gulf Cooperation Council (GCC) countries. The Kingdom of Saudi Arabia (KSA) will be used as a case study to illustrate the concepts discussed. It is widely recognized that the primary objective of SCI is to optimize the seamless and productive movement of goods and services, information, financial resources, and decision-making processes to enhance customer value. This research investigates the relationship between three elements of SCI and their influence on business performance. The utilization of contingency approach was employed to evaluate the correlation between different levels of SCI, namely customer integration, supplier integration, and internal integration, and their collective impact on business performance. The researchers employed multiple regression analysis to assess the influence of these characteristics. The study utilized analysis of variance (ANOVA), t-test, and posthoc analysis to examine the relationship between the levels of SCI and their impact on business performance measures. The model elements exhibited strong internal consistency, with a coefficient alpha of 0.95. The study revealed a statistically significant correlation between all SCI levels and business performance. Furthermore, the comprehensive model encompassed all levels of the SCI and intra and inter-interactions, showing the strongest correlation.

Keywords

Supply, Chain, Integration, Performance, Saudi.