Impact of Supply Chain Integration on Operational Performance in Bandung Fashion Industry
Raden Marsha Aulia Hakim, Ria Arifianti

Universitas Padjadjaran

Abstract

The fashion industry has been one of the most dominant sectors compared to other industries, with an increasingly competitive market requiring effective information flow across its supply chains. The implementation of supply chain integration enabled businesses to collaborate across all components of their supply networks. Furthermore, achieving strong operational performance was essential for businesses to maintain a competitive advantage. This study examined the effect of supply chain integration on operational performance in the fashion industry of Bandung. A quantitative research method was applied using Structural Equation Modeling with LISREL 8.80. The sample consisted of 200 respondents who met the criteria of selling ready-made clothing, employing staff, and operating as small-scale enterprises with an annual turnover of 300 million rupiah. The results indicated that supply chain integration had a significant influence on entrepreneurial orientation, and entrepreneurial orientation, in turn, significantly affected operational performance. Additionally, supply chain integration directly influenced operational performance and also had an indirect effect through the mediating role of entrepreneurial orientation. Moreover, environmental uncertainty moderated the relationship between supply chain integration and operational performance. These findings provided valuable insights into how integrating supply chains and fostering entrepreneurial orientation could enhance operational performance in the competitive fashion sector, particularly under varying environmental conditions.

Keywords: Supply Chain Integration, Operational Performance, Entrepreneurial Orientation, Environmental Uncertainty, Fashion Industry

Topic: Business Transformation in the Digital Era