Supply chain integration and firm performance:

Abstract

The main objective of this study is to explore the nexus between supply chain integration (SCI) and firm performance within the manufacturing sector in Sri Lanka. Although the literature mainly highlights external integration dimensions (supplier, customer), the empirical research pointed out three internal dimensions: internal, process, and product integration, which are more consistent with realities in Sri Lankan manufacturing firms. Survey responses of 100 managers of medium- and large-sized manufacturing. organizations were taken for data analysis by a quantitative research design in this study, from a convenience sample to overcome the practical hurdles (Azim, 2016). Validation part of an ongoing study on Building Corporate Reputation in Sri Lanka, the survey items were adapted from validated international scales and contextualized for the local market, while secondary data from firms like Brandix, MAS Holdings, Unilever Sri Lanka, Dilmah, CBL, and Tokyo Cement were also used to triangulate findings. To examine associations and unique contributions of SCI dimensions to performance, data were aggregated into construct indices and analyzed using correlation and regression models. The conceptual model, including outcomes, financial (ROCE, Sales Growth), operational, market, and customer satisfaction, also considered capabilities (responsiveness) as a dimension of firm performance within the context of international best practice and Sri Lankan industry conditions. These results supported a positive relationship between internal, process, and product integration levels with firm performance, which under different conditions regarding the inclusion of control variables (firm size and export orientation) led to comparable outcomes. It contributes beyond providing theoretical clarification by elucidation of SCI constructs and contributing to practical implications for Sri Lankan manufacturers, as it establishes that operational- and product-level integrations are imperative for competitiveness in domestic and export markets.