DETERMINING THE MEDIATING ROLE OF SUPPLIER AND CUSTOMER INTEGRATION TOWARDS ENHANCING RETURN ON INVESTMENT OF SMALL AND MEDIUM ENTERPRISES

Abstract

It is no use having organisational vision, goals and objectives without the careful strategic alignment of how to integrate the different functional activities to achieve set goals and objectives. A healthy organisation requires an integration strategy to contribute to the continuous success of the organisation. The ability of small to medium enterprises (SMEs) to integrate business activities across the supply chain and with customers will no doubt achieve competitive advantage over competitors. The purpose of this study is to determine supply chain influence on the mediating role of supplier and customer integration toward enhancing SMEs return on investment within the southern Gauteng region. A quantitative method of data collection was adopted and SMART-PLS (3.0) software for structural equation modelling (SEM) was used to analyse statistically the measurement and structural model. Based on the theoretical review, a research framework detailing the hypothesis relationship between the research constructs was developed. From the research findings, the results provide support for the proposed positive relationships between the constructs with the evidence that supply chain relationship among SMEs is a connecting thread with the potential of integrating both suppliers and customers for the purpose of reducing operating cost and improvement of final product to customers

Keywords

• Supply chain relationship, Supplier, Customer, Integration, SMEs, Return on investment