THE EFFECT OF SUPPLY CHAIN INTEGRATION AND EMPLOYEE

COMMITMENT ON ORGANIZATIONAL PERFORMANCE

The main purpose of this research study was to give a theoretical explanation in response
to an empirical approach for the idea that there exists a relationship between IT, employee
commitment and organizational performance. In addition to that, the current study attempts to
elaborate the relationship more deeply with the presence of mediating variables which are the
three dimensions of Supply Chain Integration (SCI), i.e. customer, supplier and internal
integration. This study also investigates the relationships among internal integration, external
integration (i.e. with customers and suppliers), customer satisfaction, and organizational
performance using survey data from different organizations.

The Organizational Learning Theory provided a conceptual framework for this research. This
study focuses on evaluating a causal relationship between different variables affecting overall
organizational performance. Therefore, this research is based on an organizational learning
model, which tends to postulate that different establishing a knowledge base among customers,
suppliers and employees by sharing information along the supply chain helps improve
organizational performance.

The study area for this research was the firms belonging to multiple sectors majorly
manufacturing industries from all over Pakistan. The required data for this study was collected
utilizing an online survey method. The sample population consisted of the employees associated
with supply chains of different firms in Pakistan. Out of 250 questionnaires, fortunately 244 were
usable. So, the data obtained from 244 responses was used for further analysis in statistical soft
wares. Relevant calculations like confirmatory factor loading, correlation analysis were carried
out to get the most precise results.

In this study, both IT and EC tend to have a positive effect on the overall Organizational
Performance. Also all the dimensions of SCI have a positive effect on OP and customer
satisfaction except for Supplier Integration which has a comparatively lower effect.

Reflecting the results of this study, several recommendations can be proposed to enhance firm
performance to help firms compete in this fast-paced world. Identifying which attribute
contributes the most or proves to be the most influential in affecting organizational performance
will help organizations focus on that specific attribute. The key entities associated with a firm,
i.e. employees, customers and suppliers will gain mutual benefit by establishing knowledge
bases throughout the supply chains.