How do Supply Chain Strategies and Supply Chain Integration Affect Operational Performance

The importance of supply chain strategies and integrative practices in addressing complex supply chain issues is well acknowledged by both academia and industry professionals. Companies are also focused on risk management, handling unexpected disruptions, and enhancing performance in an uncertain business environment. This study empirically investigates the impact of supply chain strategy on supply chain integration, the effect of supply chain integration on operational performance, and the mediating role of supply chain risk management (SCRM) in these relationships. Covariance-based structural equation modelling was used to test hypotheses with data from 343 SMEs. Findings indicate that supply chain strategy positively influences supply chain integration, which is measured by internal integration, supplier integration and customer integration. Additionally, supply chain integration directly affects operational performance. The study also confirms the mediating role of SCRM in supply chain integration and operational performance. These findings contribute to a more comprehensive understanding of the interplay between supply chain strategy, S.C. integration, S.C. risk management, and operational performance, offering insights for organizations to enhance their supply chain management practices and gain competitive advantage.