THE IMPACT OF SUPPLY CHAIN INTEGRATION ON FIRMS’ BUSINESS AND OPERATIONAL PERFORMANCE AT THE FOOD RETAIL SECTOR/INDUSTRY

Abstract

Purpose-This study researched into the impact of supply chain integration and firm performance of food retailers in Turkey. The main purpose of this study was to identify the impact of internal and external supply chain integration on firms’ business and operational performance in the food retail sector in Turkey.

Methodology-Two big cities in Turkey, namely, Istanbul and Eskişehir were selected for this study due to the availability of major food retailers in these cities. Stratified sampling method was used to select respondents. In total, 216 firms were selected out of which only 208 firms responded to the questionnaire distributed. Structural Equation Model specifically Amos was used to analyse the data.     

Findings-The study found a positive and significant relationship between internal and external integration, and the study also found a significant and a positive relationship between internal integration and firms’ operational and business performance. On the other hand, the study also found a significant and a positive relationship between external integration and firms’ operational and business performance. 

Conclusion- Consequently, retailers in Turkey were admonished to practice and uphold supply chain collaboration with their suppliers and customers. 

Keywords

• Supply chain management,supply chain integration,food retailers,operational performance and business performance

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