The Impact of Supply Chain Integration on Operational Performance of Saudi SMEs

This study investigates the effect of supply chain integration (SCI) on the operational performance of small and medium-sized enterprises (SMEs) in Saudi Arabia, with a focus on the Asir region. Analyzing data from 118 SMEs, it examines how internal integration, alongside customer and supplier integration, influences operational and business outcomes. The research reveals that internal integration is pivotal for enhancing both operational and business performance, while supplier integration significantly boosts operational efficiency, underlining the importance of strategic supplier relations. Conversely, customer integration is found to improve business performance, stressing the value of meeting customer demands for competitive advantage. The study challenges existing assumptions regarding the comprehensive benefits of multi-faceted SCI approaches, suggesting a need for strategies that are more finely tuned to the context of Saudi SMEs. It advocates for a phased SCI strategy, emphasizing initial internal integration before extending to external partnerships, and suggests targeted resource distribution reflecting the distinct impact of each integration aspect on performance. The findings provide valuable insights for both practitioners and researchers, indicating directions for future studies on SCI's role in emerging markets and its variable effects based on different environmental factors