Supply chain integration as the implementation of strategic management in improving business performance

Abstract

Abstract This study explores how supply chain integration (SCI)—encompassing internal, supplier, and customer integration—enhances operational and financial performance. Using data from 90 companies listed on the Indonesian Stock Exchange, the findings reveal that SCI drives operational efficiency and innovation through cross-departmental collaboration, strategic supplier partnerships, and advanced customer engagement. Internal integration aligns processes and improves decision-making, supplier integration optimizes resource use and fosters innovation, while customer integration enhances responsiveness and personalization. Collectively, SCI explains 84.7% of operational performance variance and 80.4% of financial performance. This research underscores the strategic importance of tailored integration efforts supported by digital technologies to address organizational challenges and sustain competitive advantage. The findings provide actionable insights for companies aiming to optimize their supply chains and achieve long-term business resilience in dynamic markets.

Keywords

• Supply chain integration
• Business performance
• Strategic management
• Operational efficiency
• Financial performance