THE EFFECT OF SUPPLY CHAIN INTEGRATION ON RETURN OF INVESTMENT AND FINANCIAL LIQUIDITY

Abstract

This study was conducted to examine supply chain integration and its influence on financial liquidity and return on investment in Saudi Arabia. This study was conducted using a quantitative method. Survey method was used to collect data. The number of samples for this work was 52. The survey was distributed to a few companies that have a supply chain function in it. The data were analyzed using SPSS software. The variables of this study was Supply Chain Practical Capability (SCPC), Supply Chain Integration (SCI), Competitive Capability (CC),Financial Liquidity (FL) and Return on Investment (ROI). Thus 8 hypotheses were deduced for this work. The statistical analysis showed that there is a significant positive correlation between all variables. However, the regression analysis showed that there is no direct effect on ROI and FL for the SCPC and CC. Nevertheless, they have an effect on them through supply chain integration. As a result, four of the hypotheses were rejected and four of them were accepted. This study will help managers make supply chain decisions that will increase their firms ' profitability.