Impacts of strategic orientations on Saudi firm performance: is supply chain integration a missing link?

Abstract

PurposeLittle previous research has investigated the relationships among strategic orientations, supply chain integration and firm performance. The purpose of this study is to advance a research model that examines the direct and indirect effects of strategic orientations via supply chain integration on firm performance in the Saudi transitional context.Design/methodology/approachThis study is based on data collected from a survey using questionnaires completed by 187 top management members of Saudi firms from different sectors. To analyse the data and test the proposed hypotheses, confirmatory factor analysis and structural equation modelling were conducted using the AMOS statistical analysis package.FindingsResults show that both market orientation and supply chain integration have a significant positive direct effect on Saudi firm performance. They also reveal that supply chain integration fully mediates the effect of technology orientation on firm performance, while partially mediating the effect of market orientation on firm performance.Research limitations/implicationsThis study contributes to the literature by showing how SCI could serve as an organizational capability that links strategic resources to firm performance. The main limitation of this study is that it was not possible to generalize the findings. Future research perspectives were proposed to address this limitation and add new insights to the field.Practical implicationsThe results could help decision-makers in Saudi firms choose the right strategic orientations and aid them in integrating their supply chains by sharing the necessary information and coordinating operations with key partners to enhance their firms' performance.Originality/valueThis study is one of the first to conduct such an investigation in the Saudi context. The study simultaneously examines the role of supply chain integration in linking strategic orientations to firm performance and fills a current research gap in such a transitional context.