The Mediating Role Effect of Internal Integration Between Long Term Relationship with Suppliers and Customers and Business Performance in Turkey ICI 500 Enterprises

Abstract

Goal: This paper aims to demonstrate the mediating effect of internal integration in the relationship between long-term connections with customers/suppliers and operating performance. Businesses that want to improve operating performance often try to establish long-term relationships with customers and suppliers. However, at this stage, they neglect the internal integration process. Design/Methodology/Approach: Exploratory and empirical data were collected from Turkey's largest 500 manufacturing firms. Factor analyses were performed to verify the validity and reliability of the data set and scales. Then, the relationships between the variables were tested with a hierarchical regression model. Results: The findings show that the internal integration variable has a full mediating effect on the relationship between long-term relationships with customers/suppliers and the operating performance variable. Limitations of the investigation: This research is based only on large industrial enterprises, and the results can only be interpreted in the context of emerging economies. Practical implications: When businesses try to establish long-term relationships with customers and suppliers, they often neglect the internal integration process, making the long-term relationship processes ineffective. This research focuses on internal integration and emphasizes its impact on the relationship between variables. Originality/Value: This study on the integration of supply in the context of Turkey's largest production company is the first and original research. These results for manufacturing enterprises in developing countries with a similar economic structure to Turkey are expected to provide practical benefits.