Supply Chain Integration and Operational Performance: Moderating role of Organizational Culture

In the current global market, competition is not between organizations but among their supply chain. We found a number of rationales from the global market that the well renowned global organizations (such as Wal-Mart, Procter & Gamble, Pfizer, Allied Business Intelligence Inc., Target Corp., etc.) that integrate with their suppliers and customers, and prevailed in the global market. By acknowledging the significance of supply chain integration, the study is aimed at exploring the relationship between supply chain integration and operational performance of organizations operating in Pakistan. Further study has explored the moderating impact of organizational culture on this relation, as the culture play a vital role in the supply chain integration of an organization and its performance. The paper is based on empirical study undertaken on textile-base firms operating in Pakistan.
A theoretical grounded conceptual model is developed to organize a mechanism through which supply chain integration influences on operational performance with the moderating effect of organizational culture. With the help of this model 2 hypotheses were developed. To analyze the hypothesized relationship, multiple statistical tools were applied with the help of SPSS. These hypotheses were tested with the help of data collected through questionnaires that were filled from a sample of 150 employees of 10 dominant firms prevailed in textile industry of Pakistan. Theory, and the data collected from employees verified the proposed hypotheses and suggested that if management of an organization wants to improve its operational performance it would have to develop strategic collaboration with its suppliers and customers, and there should be a cross functional integration within the organization. Findings also reveal that organizational culture moderate the relationship of supply chain integration and operational performance.