Impact of Innovativeness in Supply Chain Integration on Supply Chain Performance: A Moderating Role of Information System Capability

Abstract

This study aims to investigate how innovativeness in supply chain (SC) integration improves the SC performance of manufacturing small and medium enterprises (SMEs) in Pakistan. Moreover, the research addresses the significance of information system capabilities as the mediating factor. The data was obtained from 251 SMEs in Pakistan's manufacturing sector, and the companies' managers, CEOs, and proprietors. The measurements of different nature, such as normality tests, reliability evaluation, and ANOVA, were used along with an interrelationship study via correlation and factor analysis.  Also, linear regression was applied. Data analysis shows a close relationship between innovations, SC integration improvements, and operation efficiency. The ability to use and manage information systems data efficiently is crucial for the operational success of SMEs in Pakistan and for integrating innovative practices into their SC. On the one hand, innovative SC integration is vital for companies – they should focus on strategic SC integration. For diverse SMEs immersed in changing environments, internal and external integration is one of the critical factors in ensuring proper innovation chain processes.