Relationship Stability and Supply Chain Performance for SMEs: From Internal, Supplier, and Customer Integration Perspectives

TLDR: In this paper, the authors examined the relationship between supply integration and relationship stability and the relationship of relationship stability to supply chain performance and the moderation effect of environmental uncertainty on supply chain integration.

Abstract: This study examined the relationship between supply integration and relationship stability and the relationship between relationship stability and performance; furthermore, the moderation effect of environmental uncertainty on supply chain integration and relationship stability was analyzed. The subjects are typical small and medium-sized enterprises (SMEs) in developing countries that focus on niche markets to compete with large-scale manufacturers. Questionnaires were distributed to manufacturers to collect empirical data; in total, 566 valid samples were gathered. The results indicate that supply chain integration has positive effects on relational stability and that relational stability has positive effects on supply chain performance. Relational stability is a mediator between supply chain integration and supply chain performance. The contingency effects of environmental uncertainty on the relationships between internal integration and relational stability were determined in this research. This research framework extended past research on supply chain management; part of the research explored the relationship between supply chain integration and different measures of supply chain performance, as well as whether uncertainty affects supply chain integration and supply chain performance.