IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i5p1248-d209352.html
   My bibliography  Save this article

The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector

Author

Listed:
  • Miklós Pakurár

    (Institute of Applied Informatics and Logistics, Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

  • Hossam Haddad

    (Károly Ihrig Doctoral School of Management and Business, University of Debrecen, 4032 Debrecen, Hungary)

  • János Nagy

    (Oncology Institute, UFaculty of Medicine, niversity of Debrecen, 4032 Debrecen, Hungary)

  • József Popp

    (Institute of Sectoral Economics and Methodology, Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

  • Judit Oláh

    (Institute of Applied Informatics and Logistics, Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

Abstract

The aim of this paper is to use a recently developed framework of supply chain integration (SCI) to examine the influence of a set of relationships between SCI and internal control on financial performance in the Jordanian banking sector. SCI consists of external integration and internal integration. External integration includes customer integration and supplier integration. This study utilizes survey data from 249 employees in the Jordanian banking sector and tests the research framework and hypotheses using exploratory factor analysis. The impact of supply chain internal and external integration and internal control significantly affected financial performance. The impact of the examined factors on financial performance is as follows, in decreasing order: internal integration, supplier integration, customer integration, and internal control. This study’s contribution to supply chain management is in its integration of SCI and internal control variables to propose a practical framework for the banks to use, and its development of a measurement tool for managers to determine the effects of internal and external integration and internal control on financial performance.

Suggested Citation

  • Miklós Pakurár & Hossam Haddad & János Nagy & József Popp & Judit Oláh, 2019. "The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector," Sustainability, MDPI, vol. 11(5), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1248-:d:209352
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/5/1248/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/5/1248/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sebastian Kot, 2018. "Sustainable Supply Chain Management in Small and Medium Enterprises," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    2. Qi, Yinan & Huo, Baofeng & Wang, Zhiqiang & Yeung, Hoi Yan Jeff, 2017. "The impact of operations and supply chain strategies on integration and performance," International Journal of Production Economics, Elsevier, vol. 185(C), pages 162-174.
    3. Kwaku Appiah-Adu & Satyendra Singh, 1998. "Market Orientation and Performance: An Empirical Study of British SMEs," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 7(1), pages 27-47, March.
    4. Ataseven, Cigdem & Nair, Anand, 2017. "Assessment of supply chain integration and performance relationships: A meta-analytic investigation of the literature," International Journal of Production Economics, Elsevier, vol. 185(C), pages 252-265.
    5. Włodzimierz Sroka & Richard Szántó, 2018. "Corporate Social Responsibility and Business Ethics in Controversial Sectors: Analysis of Research Results," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 14(3), pages 111-126.
    6. Lii, Peirchyi & Kuo, Fang-I, 2016. "Innovation-oriented supply chain integration for combined competitiveness and firm performance," International Journal of Production Economics, Elsevier, vol. 174(C), pages 142-155.
    7. Judit Oláh & Attila Bai & György Karmazin & Péter Balogh & József Popp, 2017. "The Role Played by Trust and Its Effect on the Competiveness of Logistics Service Providers in Hungary," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    8. Aapo Länsiluoto & Annukka Jokipii & Tomas Eklund, 2016. "Internal control effectiveness – a clustering approach," Managerial Auditing Journal, Emerald Group Publishing, vol. 31(1), pages 5-34, January.
    9. Demeter, Krisztina & Szász, Levente & Rácz, Béla-Gergely, 2016. "The impact of subsidiaries’ internal and external integration on operational performance," International Journal of Production Economics, Elsevier, vol. 182(C), pages 73-85.
    10. Danese, Pamela, 2013. "Supplier integration and company performance: A configurational view," Omega, Elsevier, vol. 41(6), pages 1029-1041.
    11. Wong, Christina W.Y. & Wong, Chee Yew & Boon-itt, Sakun, 2013. "The combined effects of internal and external supply chain integration on product innovation," International Journal of Production Economics, Elsevier, vol. 146(2), pages 566-574.
    12. Chang, Woojung & Ellinger, Alexander E. & Kim, Kyoungmi (Kate) & Franke, George R., 2016. "Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors," European Management Journal, Elsevier, vol. 34(3), pages 282-295.
    13. Yu, Wantao & Jacobs, Mark A. & Salisbury, W. David & Enns, Harvey, 2013. "The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 146(1), pages 346-358.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tae-Hwan Yoon & Saerom Wang, 2023. "How Important Is Stakeholder Collaboration in the MICE Industry: Antecedents and Outcomes of Supply Chain Integration," Sustainability, MDPI, vol. 15(20), pages 1-19, October.
    2. Xiao Guan & Chunli Yao & Weimin Zhang, 2023. "Sustainability of Entrepreneurship: An Empirical Study on the Impact Path of Corporate Social Responsibility Based on Internal Control," Sustainability, MDPI, vol. 15(16), pages 1-17, August.
    3. Qilun Li & Zhaoyi Xu & Xiaoqin Shen & Jiacheng Zhong, 2022. "Predicting Business Risks of Commercial Banks Based on BP-GA Optimized Model," Computational Economics, Springer;Society for Computational Economics, vol. 59(4), pages 1423-1441, April.
    4. Ammar Salah & Dilber Çağlar & Khaled Zoubi, 2023. "The Impact of Production and Operations Management Practices in Improving Organizational Performance: The Mediating Role of Supply Chain Integration," Sustainability, MDPI, vol. 15(20), pages 1-18, October.
    5. Hassan, Nadir Munir & Abbasi, Muhammad Nauman, 2021. "A review of supply chain integration extents, contingencies and performance : A post Covid-19 review," Operations Research Perspectives, Elsevier, vol. 8(C).
    6. Rini Mulyani Sari & Evan Nugraha, 2021. "Lean Supply Chain System in Indonesian Banking Industry," Technium Social Sciences Journal, Technium Science, vol. 25(1), pages 522-532, November.
    7. Sehar Zulfiqar & Rabeea Sadaf & József Popp & Jolita Vveinhardt & Domicián Máté, 2019. "An Examination of Corporate Social Responsibility and Employee Behavior: The Case of Pakistan," Sustainability, MDPI, vol. 11(13), pages 1-15, June.
    8. Katarina Valaskova & George Lazaroiu & Judit Olah & Anna Siekelova & Barbora Lancova, 2019. "How Capital Structure Affects Business Valuation: A Case Study of Slovakia," Central European Business Review, Prague University of Economics and Business, vol. 2019(3), pages 1-17.
    9. Imadeddine Oubrahim & Naoufal Sefiani & Ari Happonen, 2023. "The Influence of Digital Transformation and Supply Chain Integration on Overall Sustainable Supply Chain Performance: An Empirical Analysis from Manufacturing Companies in Morocco," Energies, MDPI, vol. 16(2), pages 1-24, January.
    10. Zhao, Xiaofei & Wang, Ping & Pal, Raktim, 2021. "The effects of agro-food supply chain integration on product quality and financial performance: Evidence from Chinese agro-food processing business," International Journal of Production Economics, Elsevier, vol. 231(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Siyu & Huo, Baofeng & Han, Zhaojun, 2022. "A literature review towards theories and conceptual models of empirical studies on supply chain integration and performance," International Journal of Production Economics, Elsevier, vol. 250(C).
    2. Zhao, Xiaofei & Wang, Ping & Pal, Raktim, 2021. "The effects of agro-food supply chain integration on product quality and financial performance: Evidence from Chinese agro-food processing business," International Journal of Production Economics, Elsevier, vol. 231(C).
    3. Chen, Meng & Tang, Xinlin & Liu, Hefu & Gu, Jibao, 2023. "The impact of supply chain concentration on integration and business performance," International Journal of Production Economics, Elsevier, vol. 257(C).
    4. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    5. Tanveer Ahsan & Sultan Sikandar Mirza & Ammar Ali Gull & Muhammad Ansar Majeed, 2023. "How to deal with customer and supplier concentration to attain sustainable financial growth? The role of business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4600-4619, November.
    6. Chai Bin Feng & Muhammad Usman Khurram & Raheel Safdar & Sultan Sikandar Mirza & Amjad Iqbal, 2023. "Corporate strategic responses, supplier concentration and sustainable growth of chinese listed firms," Operations Management Research, Springer, vol. 16(3), pages 1413-1427, September.
    7. Sener, Abdurrezzak & Barut, Mehmet & Oztekin, Asil & Avcilar, Mutlu Yuksel & Yildirim, Mehmet Bayram, 2019. "The role of information usage in a retail supply chain: A causal data mining and analytical modeling approach," Journal of Business Research, Elsevier, vol. 99(C), pages 87-104.
    8. Lin, Jiabao & Fan, Yuchen, 2024. "Seeking sustainable performance through organizational resilience: Examining the role of supply chain integration and digital technology usage," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    9. Tarifa Fernández, Jorge & de Burgos Jiménez, Jerónimo & Céspedes Lorente, José Joaquín, 2018. "Absorptive capacity as a confounder of the process of supply chain integration," MPRA Paper 120125, University Library of Munich, Germany, revised 2018.
    10. Franck Brulhart & Uche Okongwu & Btissam Moncef, 2015. "Causal linkages between supply chain management practices and performance: a balanced scorecard strategy map perspective," Post-Print halshs-01239670, HAL.
    11. Muhammad Irfan & Mingzheng Wang & Naeem Akhtar, 2019. "Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view," Operations Management Research, Springer, vol. 12(3), pages 113-128, December.
    12. V.Yu. Chernova & Z.G. Golodova & E.A. Degtereva & A.M. Zobov & V.S. Starostin, 2018. "Russian Industry in Global Value-Added Chains," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 165-178.
    13. Muhammad Usman Ahmed & Mark Pagell & Mehmet Murat Kristal & Thomas F. Gattiker, 2019. "Micro-Foundations of Supply Chain Integration: An Activity-Based Analysis," Logistics, MDPI, vol. 3(2), pages 1-17, March.
    14. Abreu-Ledón, René & Luján-García, Darkys E. & Garrido-Vega, Pedro & Escobar-Pérez, Bernabé, 2018. "A meta-analytic study of the impact of Lean Production on business performance," International Journal of Production Economics, Elsevier, vol. 200(C), pages 83-102.
    15. Chavez, Roberto & Malik, Mohsin & Ghaderi, Hadi & Yu, Wantao, 2021. "Environmental orientation, external environmental information exchange and environmental performance: Examining mediation and moderation effects," International Journal of Production Economics, Elsevier, vol. 240(C).
    16. Asif Arshad Ali & Asif Mahmood, 2023. "How Do Supply Chain Integration and Product Innovation Capability Drive Sustainable Operational Performance?," Sustainability, MDPI, vol. 16(1), pages 1-20, December.
    17. Xiaoyan Zhang & Rita Yi Man Li & Zhizhong Sun & Xin Li & Sarminah Samad & Ubaldo Comite & Liviu Marian Matac, 2022. "Supply Chain Integration and Its Impact on Operating Performance: Evidence from Chinese Online Companies," Sustainability, MDPI, vol. 14(21), pages 1-16, November.
    18. Abdurrezzak Sener & Mehmet Barut & Ali Dag & Mehmet Bayram Yildirim, 2021. "Impact of commitment, information sharing, and information usage on supplier performance: a Bayesian belief network approach," Annals of Operations Research, Springer, vol. 303(1), pages 125-158, August.
    19. Benzidia, Smaïl & Makaoui, Naouel & Subramanian, Nachiappan, 2021. "Impact of ambidexterity of blockchain technology and social factors on new product development: A supply chain and Industry 4.0 perspective," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    20. Adam P. Balcerzak & Radka MacGregor Pelikánová, 2020. "Projection of SDGs in Codes of Ethics—Case Study about Lost in Translation," Administrative Sciences, MDPI, vol. 10(4), pages 1-18, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1248-:d:209352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.