Effect of Supply Chain Integration on the Business Performance and Competitiveness of the Philippine Small and Medium Enterprises

Abstract

This study aims to determine the effect of supply chain integration on the business performance and competitiveness of small and medium enterprises in the Philippines. A survey of 384 small and medium enterprises was done and structural equation modeling was used to test the hypothesis. Results show that internal integration strongly influences (p<0.001) both business performance (growth) and competitiveness of small and medium enterprises. Moreover, customer integration influences business performance (growth) and internal integration mediates the effect of supplier and customer integration in business performance (growth) and competitiveness of small and medium enterprises.