Studying the effect of integrated supply chain on the financial performance of Bandar Imam Petrochemical Company

Author Name(s): Hassan Feisalymehr, Mahmoud Nematian*, Abbas Talebbeydokhti
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Abstract

The aim of this study is to study the effect of integrated supply chain on the financial performance of Bandar Imam Petrochemical Company). The study is applied in terms of purpose, and regarding its nature, it is descriptive-survey of field type. Data was obtained using the supply chain and financial performance questionnaires with the overall reliability of 0.90. The study population consisted of managers and employees of Bandar Imam Petrochemical Company (BIPC). The sample consists of 201 people from among managers and employees who were selected randomly. The main research question is whether the integrated supply chain has a positive effect on the financial performance of BIPC. Descriptive and inferential statistics with SPSS and Lisrel software were used to analyze the collected data. Descriptive statistics and analysis of variance were used to study demographic characteristics of the population. Due to the simultaneous study of several variables and the relationships between them, structural equation modeling is used. According to the results, all hypotheses were confirmed at 95% level of confidence. In addition, the results showed that the study model fits with data collected from the target population. The values of the indices of goodness of fit in the final model show the suitability of the model. Thus, data analysis showed that the integrated supply chain has a significant positive effect on the financial performance of BIPC. It was suggested that integration at the operation level be created between suppliers, customers, and internal affairs of the company. Moreover, it is suggested that financial performance be considered as a value and get credibility and importance to reduce costs and balance the state of payment, it should be trained practically to the employees, and financial performance software be trained to the employees as well.

Keywords

integrated supply chain, financial performance, Bandar Imam Petrochemical Company

Introduction

Today, companies inevitably need to design and adopt strategies that would help them to improve their performance. The supply chain is considered as one of the strategies in the growing trend of companies and organizations. Today, organizations adjust to organizational changes, so that they could respond to changes in the product, market, and the needs of customers and provide opportunities to be recognized among competitors as the top organization (Raad, 2011).

Conclusion

The main hypothesis:
Integrated supply chain has a significant positive effect on financial performance of BIPC. The path coefficient between integrated supply chain and financial performance is 0.68. According to t test, 4.57>1.96 at the significance level of 0.05, and null hypothesis is rejected, so researcher’s claim has been backed with reliability 0.95. At a 5% error rate, it can be argued that integrated supply chain has a significant positive effect on financial performance of BIPC. To justify this, it can be stated that there is integration between suppliers, customers, and internal affairs of BIPC. Thus, financial performance is seen as a value and has importance and credit that will reduce costs and balance the payments status.

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