Exploring the Nexus between Supply Chain Integration, Integrative Value-Creation, and Firm’s Performance: Mediating Roles of Entrepreneurial Self-Efficacy and Innovation Capability

Abstract

Purpose – This research aims to examine the impact of supply chain integration and Integrative value creation on Small & Medium Enterprises (SMEs)' performance in Pakistan. We also examined the mediating impact of Entrepreneurial Self-Efficacy and Innovation Capability in these correlations.

Design/methodology/approach:

Innovative Capabilities, Integrative Value-Creation, entrepreneurial self-efficacy, and supply chain integrations in Pakistani SMEs, as well as their impact on company performance, were identified and briefly contested. Hypotheses were investigated using Structural Equation Modelling (SEM) on research data from 394 SMEs registered with the SMEDA (Small and Medium Enterprises Regulatory Authority of Pakistan). The quantitative analysis was completed last, followed by a discussion of the findings.

Findings

The study's findings revealed that there are positive and significant connections between the factors. The beneficial association between supply chain integration and business success is mediated by innovation capability. Entrepreneurial Self-Efficacy and Firm Performance also played a beneficial mediation influence.

Research limitations/implications

The findings are limited to SMEs in Pakistan. Future research could look into the impact of foreign investments on value creation amongst firms as of the growing figure of Internationally-owned SMEs in Pakistan, as well as the perception of unfair competition from these enterprises, this is useful. The findings of these research could have implications with regards to policy implementaion on how to encourage domestic and foreign-owned enterprises to collaborate.

Originality / Value

The current study is considered the first to explore the nexus of Supply Chain Integration (SCI) and Integrative Value Creation with Firm Performance in SMEs of Pakistan embedding the mediating roles of Entrepreneurial Self-efficacy and Innovation Capability. It enriches the literature by exploring the ways to foster the firm performance through integrative value-creation and supply chain integration and validating the importance of Entrepreneurial Self-Efficacy and Innovation Capability of firms in development and enhancement of firms’ performance compared to previous studies. Moreover, it also offers various theoretical and managerial ramifications, as well as future possibilities.