The Relationship Between Supply Chain Integration and Organizational Productivity: The Mediating Role of Supply Chain Agility in Small and Medium-Sized Food Enterprises in the Industrial Estates of Kerman

Abstract

Objective: This study aimed to examine the relationship between supply chain integration and organizational productivity and to determine the mediating role of supply chain agility among small and medium-sized food enterprises in the industrial estates of Kerman.

Methods and Materials: This applied, descriptive-correlational study was conducted among employees of small and medium-sized food enterprises located in the industrial estates of Kerman, Iran. The statistical population consisted of 500 employees, from whom 217 participants were selected using proportionate stratified random sampling based on Cochran’s formula. Data were collected using three standardized instruments: a 30-item supply chain integration questionnaire assessing supplier, customer, and internal integration; a 10-item supply chain agility questionnaire assessing market sensing and responsiveness; and a 42-item organizational productivity questionnaire covering organizational culture, environmental conditions, motivation, empowerment, and leadership style. Internal consistency was evaluated using Cronbach’s alpha, while convergent and discriminant validity were assessed through composite reliability, average variance extracted, and the Fornell–Larcker criterion. Data were analyzed using SPSS 19 and SmartPLS 2. Partial least squares structural equation modeling was employed to evaluate the measurement and structural models, with statistical significance set at p < .05.

Findings: The measurement model demonstrated high internal consistency, with Cronbach’s alpha coefficients of .957 for organizational productivity, .941 for supply chain integration, and .933 for supply chain agility, and composite reliability values of .955, .946, and .938, respectively. AVE values ranged from .438 to .467, and the Fornell–Larcker criterion supported discriminant validity. All relevant structural relationships were statistically significant at the 95% confidence level. The model explained 38.7% of the variance in supply chain agility (R² = .387). Effect sizes were moderate (f² = .156 and .295), predictive relevance was positive (Q² = .113), and the overall GOF index was .411. The structural results supported meaningful relationships among supply chain integration, supply chain agility, and organizational productivity, consistent with the proposed mediating role of supply chain agility.

Conclusion: The findings indicate that stronger supply chain integration is associated with greater organizational productivity and that supply chain agility serves as an important mechanism through which integrated supply chain practices can be translated into improved organizational outcomes in food-sector SMEs.