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

Year 2017, Volume: 9 Issue: 2, 151 - 166, 01.06.2017

Osayuwamen Omoruyi

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