The Impact of Supply Chain Integration to Supply Chain Responsiveness in Chinese Electronics Manufacturing Companies

Abstract

The aim of the current research was to explore the relationship between supply chain integration and supply chain responsiveness in the electronics manufacturing industry in Guangdong, China. The research model conceptualized supply chain integration (comprising business process integration, system integration, and activity integration) as a key resource impacting the capability of firms to respond efficiently to changing consumer demands and market conditions. This research utilized the questionnaire to gathered data from 420 supply chain management professionals from electronics manufacturers in China. The gathered data was analyzed using PLS-SEM, which allowed us to examine the relationships between supply chain responsiveness, business process integration, activity integration and systems integration. The results obtained were interpreted and discussed in the context of previous literature and theories. The study findings reveal a positive correlation between the three aspects of supply chain integration and supply chain responsiveness. Respondents agreed that business process integration (mean = 4.822, standard deviation = 1.825), system integration (mean = 4.965, standard deviation = 1.809), and activity integration (mean = 5.243, standard deviation = 1.792) were essential determinants in developing supply chain responsiveness. This indicates that a higher level of integration in these areas can significantly enhance a firm’s ability to respond quickly and effectively to changes in the market. These findings are consistent with prior research, suggesting that these forms of integration are critical for supply chain performance. In the context of the electronics manufacturing industry in China, this research further validates the importance of these variables. Business process integration is first investigated as the determinant of supply chain responsiveness, especially in the electronics manufacturing companies of China. This study is, to the best of the authors’ knowledge, one of the first to investigate the link between business process integration and supply chain responsiveness. Meanwhile, it is also seen as the new test of examining the influence of system and activity integration on supply chain responsiveness in the current business environment. The truth from the data analysis illustrated that even in the new business environment, both integration constructs (system integration and system integration) could affect the supply chain’s responsiveness. The study’s results provide valuable insights for practitioners and policy-makers in the electronics manufacturing industry. By focusing on enhancing business process integration, system integration, and activity integration, firms can increase their responsiveness to the dynamic market environment, thus improving overall performance.