The Effect of Supply Chain Integration on Firm Performance with the Mediating Role of Supply Chain Resilience during COVID-19 Pandemic (Firms in the Food Industry in Tehran Province)

Document Type : Original Article

Authors

1 Assistant Professor, Department of Business Administration, Faculty of Management, University of Tehran, Tehran, Iran.

2 MSc, Department of Business Administration, Faculty of Management, University of Tehran, Tehran, Iran.

Abstract

The coronavirus outbreak has highlighted the importance of supply chain integration in reducing disruption impacts and maintaining organizational sustainability. Previous studies showed that supply chain integration can directly improve corporate performance. Meanwhile, supply chain integration could improve performance by increasing the company's resilience in catastrophes like the Corona outbreak. In this way, supply chain resilience mediates the relationship between integration and performance. The purpose of this research was to examine how different aspects of supply chain integration affect an organization's performance and how supply chain resilience is a mediator during an outbreak. Based on a review of the literature, the research conceptual model was designed and tested using survey data collected from food sector enterprises in Tehran province during the coronavirus epidemic. To evaluate the data and test the hypotheses, structural equation modeling was employed. The study's findings indicate that process and product integration are critical in building supply chain resilience. The supply chain's resilience also has significant effects on the relationship between supply chain integrity and firm performance. The study's findings provide useful insights for Food industry supply chain managers on the relevance of integration and resilience in ensuring sustainability and company viability during times of disruption.

Keywords

Main Subjects


  1. Abawi, K. (2017). Data Collection methods Questionnaire & Interview. Training in Sexual and Reproductive Health Research, Geneva Workshop.
  2. Aday, S., & Aday, M. S. (2020). Impact of COVID-19 on the food supply chain. Food Quality and Safety, 4(4), 167-180.
  3. Al-Hyari, K. (2020). Initial empirical evidence on how Jordanian manufacturing SMEs cope with the covid-19 pandemic. Academy of Strategic Management Journal, 19(1), 1-12.
  4. Ambulkar, S., Blackhurst, J., & Grawe, S. (2015). Firm's resilience to supply chain disruptions: Scale development and empirical examination. Journal of Operations Management, 33-34, 111-122.
  5. Araz, O. M., Choi, T.-M., Olson, D. L., & Salman, F. S. (2020). Data Analytics for Operational Risk Management. Decis. Sci., 51(6), 1316-1319.
  6. Baloch, N., & Rashid, A. (2022). Supply Chain Networks, Complexity, and Optimization in Developing Economies: A Systematic Literature Review and Meta-Analysis: Supply Chain Networks and Complexity: A Meta-Analysis. South Asian Journal of Operations and Logistics (ISSN: 2958-2504), 1(1), 14-19.
  7. Barclay, D., Higgins, C., & Thompson, R. (1995). The partial least squares (PLS) approach to casual modeling: personal computer adoption ans use as an Illustration.
  8. Beheshti, H. M., Oghazi, P., Mostaghel, R., & Hultman, M. (2014). Supply chain integration and firm performance: an empirical study of Swedish manufacturing firms. Competitiveness Review, 24(1), 20-31.
  9. Biggs, R., Westley, F. R., & Carpenter, S. R. (2010). Navigating the back loop: fostering social innovation and transformation in ecosystem management. Ecology and Society, 15(2), 1-25.
  10. Butt, A. S. (2022). Understanding the implications of pandemic outbreaks on supply chains: an exploratory study of the effects caused by the COVID-19 across four South Asian countries and steps taken by firms to address the disruptions. International Journal of Physical Distribution & Logistics Management, 52(4), 370-392.
  11. Cahyono, Y., Purwoko, D., Koho, I., Setiani, A., Supendi, S., Setyoko, P., Sosiady, M., & Wijoyo, H. (2023). The role of supply chain management practices on competitive advantage and performance of halal agroindustry SMEs. Uncertain Supply Chain Management, 11(1), 153-160.
  12. Caniato, F. F. A., & Rice, J. (2003). Building a secure and resilient supply chain.
  13. Cao, M., & Zhang, Q. (2011). Supply chain collaboration: Impact on collaborative advantage and firm performance. Journal of operations Management, 29(3), 163-180.
  14. Carbone, A. (2017). Food supply chains: coordination governance and other shaping forces. Agricultural and Food Economics, 5(3), 1-23.
  15. Carvalho, H., Azevedo, S. G., & Cruz-Machado, V. (2012). Agile and resilient approaches to supply chain management: influence on performance and competitiveness. Logistics Research, 4, 49-62.
  16. Carvalho, H., Maleki, M., & Cruz-Machado, V. (2012). The links between supply chain disturbances and resilience strategies. International Journal of Agile Systems and Management, 5(3), 203-234.
  17. Chunsheng, L., Wong, C. W., Yang, C.-C., Shang, K.-C., & Lirn, T.-c. (2020). Value of supply chain resilience: roles of culture, flexibility, and integration. International Journal of Physical Distribution & Logistics Management, 50(1), 80-100.
  18. Co-operation, O. f. E., & Development. (2021). Building Resilience: New Strategies for Strengthening Infrastructure Resilience and Maintenance. OECD Publishing.
  19. Daud, K. A. M., Khidzir, N. Z., Ismail, A. R., & Abdullah, F. A. (2018). Validity and reliability of instrument to measure social media skills among small and medium entrepreneurs at Pengkalan Datu River. International Journal of Development and Sustainability, 7(3), 1026-1037.
  20. Devaraj, S., Krajewski, L., & Wei, J. C. (2007). Impact of eBusiness technologies on operational performance: the role of production information integration in the supply chain. Journal of Operations Management, 25(6), 1199-1216.
  21. Droge, C., Jayaram, J., & Vickery, S. K. (2004). The effects of internal versus external integration practices on time-based performance and overall firm performance. Journal of Operations Management, 22(6), 557-573.
  22. Durski, K. N., Osterholm, M., Majumdar, S. S., Nilles, E., Bausch, D. G., & Atun, R. (2020). Shifting the paradigm: using disease outbreaks to build resilient health systems. BMJ Global Health, 5(5), e002499.
  23. El Baz, J., & Ruel, S. (2021). Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era. International Journal of Production Economics, 233, 107972.
  24. Eldem, B., Kluczek, A., & Bagiński, J. (2022). The COVID-19 impact on supply chain operations of automotive industry: A case study of sustainability 4.0 based on Sense–Adapt–Transform framework. Sustainability, 14(10), 5855.
  25. Fan, S., Teng, P., Chew, P., Smith, G., & Copeland, L. (2021). Food system resilience and COVID-19–Lessons from the Asian experience. Global Food Security, 28, 100501.
  26. Farooq, M. U., Hussain, A., Masood, T., & Habib, M. S. (2021). Supply chain operations management in pandemics: a state-of-the-art review inspired by COVID-19. Sustainability, 13(5), 2504.
  27. Fazli, S., & Amin Afshar, Z. (2016). Investigating the Direct Role of Supply Chain Drivers and Moderating Role of Organizational Culture on Improving Supply Chain Performance (The Case: Manufacturing Companies of Qazvin Province). Journal of Industrial Management Studies, 14(41), 109-136. (In Persian)
  28. Fiksel, J. (2015). Resilient by design: Creating businesses that adapt and flourish in a changing world. Island Press.
  29. Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58-71.
  30. Gligor, D. M., & Holcomb, M. C. (2012). Antecedents and consequences of supply chain agility: establishing the link to firm performance. Journal of Business Logistics, 33(4), 295-308.
  31. Grinberga-Zalite, G., Pilvere, I., Muska, A., & Kruzmetra, Z. (2021). Resilience of meat supply chains during and after COVID-19 crisis. Emerging Science Journal, 5(1), 57-66.
  32. Gružauskas, V., & Vilkas, M. (2017). Managing capabilities for supply chain resilience through it integration. Econ. Bus, 31, 30-43.
  33. Gunasekaran, A., Subramanian, N., & Rahman, S. (2015). Supply chain resilience: role of complexities and strategies. In: Taylor & Francis.
  34. Hajian Heidary, M., & Mirzaaliyan, M. (2022). Supply Chain Resilience Analysis Considering Disruption in the Natural Stone Industry Using a Discrete-Event Simulation Approach. Journal of Industrial Management Perspective, 12(4, Winter 2023), 97-129.
  35. Hendijani, R., & Saeidi Saei, R. (2020). Supply chain integration and firm performance: the moderating role of demand uncertainty. Cogent Business & Management, 7(1), 1760477.
  36. Hobbs, J. E. (2021). The Covid-19 pandemic and meat supply chains. Meat Science, 181, 108459.
  37. Hobbs, J. E. (2021). Food supply chain resilience and the COVID‐19 pandemic: What have we learned? Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 69(2), 189-196.
  38. Hohenstein, N.-O., Feisel, E., Hartmann, E., & Giunipero, L. (2015). Research on the phenomenon of supply chain resilience: a systematic review and paths for further investigation. International Journal of Physical Distribution & Logistics Management, 45(1/2), 90-117.
  39. Hosseini, S., Ivanov, D., & Dolgui, A. (2019). Review of quantitative methods for supply chain resilience analysis. Transportation Research Part E: Logistics and Transportation Review, 125, 285-307.
  40. Hosseini, S. M., & Sheikh, N. (2013). Supply Chain Integration and Firm Performance in Iranian Food Industry. Journal of Business Management, 12(3), 99. (In Persian)
  41. Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal, 20(2), 195-204.
  42. Huo, B., Qi, Y., Wang, Z., & Zhao, X. (2014). The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management: An International Journal,19(4), 369-384.
  43. Hyman, L., Lamb, J., & Bulmer, M. (2006). The use of pre-existing survey questions: Implications for data quality. Proceedings of the European Conference on Quality in Survey Statistics.
  44. Ivanov, D. (2020). Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic. Annals of Operations Research, 319(1), 1411-1431.
  45. Ivanov, D., & Dolgui, A. (2020). Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak. International journal of production research, 58(10), 2904-2915.
  46. Iyer, K. N., Germain, R., & Claycomb, C. (2009). B2B e-commerce supply chain integration and performance: A contingency fit perspective on the role ofenvironment. Information & Management, 46(6), 313-322.
  47. Jafari, T., Zarei, A., Azar, A., & Moghaddam, A. (2022). Designing a model for the impact of business intelligence on supply chain performance with an emphasis on integration and agility. The Journal of Industrial Management Perspective, 12 (3), 279-315. (In Persian)
  48. Jahani, M., Abbas Moghbel Baarz, A., & Azar, A. (2017). Designing a Model for the Measurement of Supply Chain Resilience through SEM Approach. The Journal of Industrial Management Perspective, 7(1), 91-114. (In Persian)
  49. Kähkönen, A.-K., Evangelista, P., Hallikas, J., Immonen, M., & Lintukangas, K. (2021). COVID-19 as a trigger for dynamic capability development and supply chain resilience improvement. International Journal of Production Research, 61(8), 2696-2715.
  50. Kochan, C. G., & Nowicki, D. R. (2018). Supply chain resilience: a systematic literature review and typological framework. International Journal of Physical Distribution & Logistics Management, 48(8), 842-865.
  51. Kumar, R., & Mishra, R. (2020). COVID-19 global pandemic: impact on management of supply chain. International Journal of Emerging Technology and Advanced Engineering, 10(4), 132-139.
  52. Kumar, V., Chibuzo, E. N., Garza-Reyes, J. A., Kumari, A., Rocha-Lona, L., & Lopez-Torres, G. C. (2017). The impact of supply chain integration on performance: Evidence from the UK food sector. Procedia Manufacturing, 11, 814-821.
  53. Kumar, V., Verma, P., Sharma, R., & Khan, A. F. (2017). Conquering in emerging markets: critical success factors to enhance supply chain performance. Benchmarking: An International Journal, 24(3), 570-593.
  54. Li, C., Coates, G., McGuinness, M., & Johnson, N. (2015). Designing an agent-based model of SMEs to assess flood response strategies and resilience.
  55. Liu, C.-L., & Lee, M.-Y. (2018). Integration, supply chain resilience, and service performance in third-party logistics providers. The International Journal of Logistics Management, 29(1), 5-21.
  56. Mashaikhi Nizamabadi, E. (2021). The effect of supply chain integration and supply chain resilience on company performance (case study: Alborz province food companies)
  57. Mattera, M., Alba Ruiz-Morales, C., Gava, L., & Soto, F. (2022). Sustainable business models to create sustainable competitive advantages: strategic approach to overcoming COVID-19 crisis and improve financial performance. Competitiveness Review: An International Business Journal, 32(3), 455-474.
  58. McLeod, S. (2018). Questionnaire: Definition, examples, design and types. Retrieved online from https://www. simplypsychology. org/questionnaires. html.
  59. Meyer, A., Walter, W., & Seuring, S. (2021). The impact of the coronavirus pandemic on supply chains and their sustainability: a text mining approach. Frontiers in sustainability, 2, 631182.
  60. Mirhabibi, S. d., Frsijani, H., Modiri, M., & Kahlili-Damghani, K. (2020). Improving the Integration of Supply Chain for Successful Implementation of World Class Manufacturing by using IPA: Evidence from Electronic Home Appliance. Journal of Industrial Management Studies, 18(57), 275-306. (In Persian)
  61. Mitropoulos, P., & Tatum, C. (2000). Management-driven integration. Journal of Management in Engineering, 16(1), 48-58.
  62. Mojaverian, S. M., Eshghi, F., & Sedigheh Ahangari, S. (2022). The effect of Covid-19 pandemic on the value of stocks of registered food companies in Tehran Stock Exchange. Journal of Agricultural Economics & Development, 36(4). (In Persian)
  63. Mwaniki, A. (2006). Achieving food security in Africa: Challenges and issues. UN Office of the Special Advisor on Africa (OSAA).
  64. Namdar, J., Li, X., Sawhney, R., & Pradhan, N. (2018). Supply chain resilience for single and multiple sourcing in the presence of disruption risks. International journal of production research, 56(6), 2339-2360.
  65. Nazemi, S., & Kharidar, F. (2012). Impact of Supply chain integration on competitive capabilities in Food and Beverages Industries. Journal of Industrial Management Studies, 9(25), 1-26. (In Persian)
  66. Nguyen, X., Le, T., Nguyen, A., Pham, T., & Tran, T. (2021). Supply chain risk, integration, risk resilience and firm performance in global supply chain: Evidence from Vietnam pharmaceutical industry. Uncertain Supply Chain Management, 9(4), 779-796.
  67. Ozdemir, D., Sharma, M., Dhir, A., & Daim, T. (2022). Supply chain resilience during the COVID-19 pandemic. Technology in Society, 68, 101847.
  68. Panwar, R., Pinkse, J., & De Marchi, V. (2022). The future of global supply chains in a post-COVID-19 world. California Management Review, 64(2), 5-23.
  69. Petersen, K. J., Handfield, R. B., & Ragatz, G. L. (2005). Supplier integration into new product development: coordinating product, process and supply chain design. Journal of operations management, 23(3-4), 371-388.
  70. Piprani, A. Z., Mohezar, S., & Jaafar, N. I. (2020). Supply chain integration and supply chain performance: The mediating role of supply chain resilience. International Jourbal of Supply Chain Management, 9(3), 58-73.
  71. Ponomarov, S. Y., & Holcomb, M. C. (2009). Understanding the concept of supply chain resilience. The international journal of logistics management, 20(1), 124-143.
  72. Rahimi, A., Boshehri, A., & Jafarian, A. (2021). Providing a Resilience Supply Chain Model in PANHA Company. Journal of Industrial Management Studies, 19(63), 85-124. (In Persian)
  73. Rahmani, M., Romsdal, A., Sgarbossa, F., Strandhagen, J. O., & Holm, M. (2022). Towards smart production planning and control; a conceptual framework linking planning environment characteristics with the need for smart production planning and control. Annual Reviews in Control, 53, 370-381.
  74. Rashid, A. H. M., & Loke, S.-P. (2016). Supply chain robustness and resilience for firm’s sustainability: case studies on electronics industry. Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014).
  75. Remko, V. H. (2020). Research opportunities for a more resilient post-COVID-19 supply chain–closing the gap between research findings and industry practice. International Journal of Operations & Production Management, 40(4), 341-355.
  76. Russell, D. M., & Swanson, D. (2018). Transforming information into supply chain agility: an agility adaptation typology. The International Journal of Logistics Management, 30(1), 329-355.
  77. Safiih, L. M., & Azreen, N. (2016). Confirmatory factor analysis approach: A case study of mathematics students’ achievement in timss. Malaysian Journal of Mathematical Sciences, 10, 41-51.
  78. Sanders, N. R. (2020). Supply chain management: A global perspective. John Wiley & Sons.
  79. Sedighpour, A., Zandieh, M., Alem Tabriz, A., & Dori, b. (2018). Resilient Supply Chain Model in Iran Pharmaceutical Industries. Journal of Industrial Management Studies, 16(51), 55-106. (In Persian)
  80. Shah, M. A., Asim, M., & Manzoor, S. (2020). The Role of Integration and Resilience For Improving Resource Efficiency. European Journal of Business and Management Research, 5(1), 1-7.
  81. Shi, M., & Yu, W. (2013). Supply chain management and financial performance: literature review and future directions. International Journal of Operations & Production Management, 33(10), 1283-1317.
  82. Siagian, H., Tarigan, Z. J. H., & Jie, F. (2021). Supply chain integration enables resilience, flexibility, and innovation to improve business performance in COVID-19 era. Sustainability, 13(9), 4669.
  83. Singh, S., Kumar, R., Panchal, R., & Tiwari, M. K. (2021). Impact of COVID-19 on logistics systems and disruptions in food supply chain. International journal of production research, 59(7), 1993-2008.
  84. Sofyalıoğlu, Ç., & Öztürk, Ş. (2012). Meta analysis of the relationship between supply chain integration dimensions and firm performance. European Journal of Economics, Finance and Administrative Sciences, 52(September), 99-119.
  85. Stevens, G. C., & Johnson, M. (2016). Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), 19-42.
  86. Tarigan, Z. J. H., Siagian, H., & Jie, F. (2021). Impact of internal integration, supply chain partnership, supply chain agility, and supply chain resilience on sustainable advantage. Sustainability, 13(10), 5460.
  87. Tejani, S., & Fukuda‐Parr, S. (2021). Gender and COVID‐19: Workers in global value chains. International labour review, 160(4), 649-667.
  88. Trienekens, J. H., Wognum, P., Beulens, A. J., & van der Vorst, J. G. (2012). Transparency in complex dynamic food supply chains. Advanced Engineering Informatics, 26(1), 55-65.
  89. Tseng, M.-L., Bui, T.-D., Lim, M. K., Fujii, M., & Mishra, U. (2022). Assessing data-driven sustainable supply chain management indicators for the textile industry under industrial disruption and ambidexterity. International Journal of Production Economics, 245, 108401.
  90. Vahabpour, N. S., Hossein. (2018). Investigating the effect of supply chain integration on company performance using mediating variables of competitive capabilities and supply chain management. 2(4), 301-314. (In Persian)
  91. Vargas-Hernández, J. G. (2023). Relocation Strategy of Global Supply Chain and Value Chain Under Deglobalization. In Managing Inflation and Supply Chain Disruptions in the Global Economy (pp. 62-80). IGI Global.
  92. Vickery, S. K., Jayaram, J., Droge, C., & Calantone, R. (2003). The effects of an integrative supply chain strategy on customer service and financial performance: an analysis of direct versus indirect relationships. Journal of operations management, 21(5), 523-539.
  93. Vo, T. D., & Tran, M. D. (2021). The impact of covid-19 pandemic on the global trade. International Journal of Social Science and Economics Invention, 7(1), 1-7.
  94. Wieland, A., & Wallenburg, C. M. (2013). The influence of relational competencies on supply chain resilience: a relational view. International Journal of Physical Distribution & Logistics Management, 43(4), 300-320.
  95. Wong, C. W., Lirn, T.-C., Yang, C.-C., & Shang, K.-C. (2020). Supply chain and external conditions under which supply chain resilience pays: An organizational information processing theorization. International Journal of Production Economics, 226, 107610.
  96. Yang, C.-S. (2016). The antecedents and consequences of supply chain service capabilities in the context of container shipping. The International Journal of Logistics Management, 27(2), 236-262.
  97. Yu, W., Jacobs, M. A., Chavez, R., & Yang, J. (2019). Dynamism, disruption orientation, and resilience in the supply chain and the impacts on financial performance: A dynamic capabilities perspective. International Journal of Production Economics, 218, 352-362.
  98. Zamanzadeh, V., Ghahramanian, A., Rassouli, M., Abbaszadeh, A., Alavi-Majd, H., & Nikanfar, A.-R. (2015). Design and implementation content validity study: development of an instrument for measuring patient-centered communication. Journal of caring sciences, 4(2), 165-178.
  99. Zhao, G., Feng, T., & Wang, D. (2015). Is more supply chain integration always beneficial to financial performance? Industrial Marketing Management, 45, 162-172.
  100. Zhao, K., Zuo, Z., & Blackhurst, J. V. (2019). Modelling supply chain adaptation for disruptions: An empirically grounded complex adaptive systems approach. Journal of operations Management, 65(2), 190-212.
  101. Zhao, X., Huo, B., Selen, W., & Yeung, J. H. Y. (2011). The impact of internal integration and relationship commitment on external integration. Journal of operations management, 29(1-2), 17-32.
  102. https://www.mimt.gov.ir