The Impact of Supplier Integration Capability on Firm Performance with the Mediating Role of Organizational Agility

Abstract

Increasing competition and dynamic environment, impose firms to gainand maintain dynamic capabilities that enable them to adapt quickly to new needs and obtain superior performance. Since integration with suppliers considers as important way to achieve a competitive advantage and superior performance, hence in this paper, the impact of the supplier integration capability (a dynamic capability which consists of sensing, seizing and transformation) on the firm performance has been investigated. Furthermore, as supplier integration capabilities can impact on performance through other capabilities, this paper explores the mediating role of organizational agility. The study is descriptive and data has been gathered from a sample of 80 active companies installed in Rasht Industrial Zone by using questionnaire. For data analysis, structural equations modeling (SEM) and partial least squares (PLS) algorithm has been used. The results showed that the supplier integration capability has positive effect on firm performance.

Keywords

• supplier integration capability
• organizational agility
• firm performance
• dynamic capability