The factors affecting the supply chain integration in the fishery industry – Research in Ben Tre province

etween risk, supply chain linkage and business 
performance 
STT Correlations between factors β P
1 SI <--- SR -.494 ***
2 CI <--- SR -.041 .580
3 CI <--- MR -.893 ***
4 SI <--- MR -.177 .027
5 SI <--- IR -.206 .031
6 CI <--- IR .067 .442
7 SI <--- ER .089 .244
8 CI <--- ER .085 .229
9 BP <--- SI .704 ***
10 BP <--- CI .362 ***
After eliminating the statistically insignificant relationships and rerun the model, the results 
show that the remaining relationships are statistically significant (see Table 3 and Table 4). 
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Table 3: The indicators of the relationship model between risk, supply chain integration 
and business performance (Revised model) 
χ2 P GFI ≥.90 TLI ≥.90 CFI ≥.95 RMSEA ≤.08
428.353 .000 .845 .977 .979 .033
Table 4: Estimates of the relationship between risk, supply chain linkage and business 
performance (Revised model) 
STT Correlations between factors β P
1 SI <--- SR -.469 ***
2 SI <--- MR -.155 .041
3 SI <--- IR -.180 .045
4 CI <--- MR -.826 ***
5 BP <--- SI .704 ***
6 BP <--- CI .363 ***
Therefore, hypotheses consisting of H1, H2, H3a, H4a, H4b, H5a are supported. However, 
H3b, H5b, H6a và H6b are rejected. 
Analyze the relationship between strategy, supply chain integration and business 
performance 
This section will test two models. The first model only includes the impact of two types of 
business strategic orientations: low cost strategy and customer strategy. Then, the combined 
variables of the two strategies will be included in the model for validation. The first step will 
be to assess the suitability of the model. 
Table 5: Estimates of the relationship between strategy, supply chain integration and 
business performance 
STT Correlations between factors β P
1 SI <--- CBS .851 ***
2 SI <--- DBS .081 .307
3 CI <--- DBS .623 ***
4 CI <--- CBS .222 .022
5 BP <--- SI .604 ***
6 BP <--- CI .471 ***
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Most relationships are statistically significant, with the exception of the relationship between 
the customer strategy and the association with the supplier (see Table 5). Thus, the 
Hypotheses H7a, H7b and H8b are accepted. Hypotheses H1 and H2 continue to be 
supported. However, the H8a hypothesis is not accepted. 
The next step is to incorporate the variable into the model for testing. Most relationships are 
not statistically significant when introducing a customer and low cost strategic orientations 
(see Table 6). 
Table 6: Estimates of the relationship between business strategy, mix strategy, supply 
chain integration, and business performance 
STT Correlations between factors β P
1 SI <--- CBS -.034 .873
2 SI <--- DBS -1.135 ***
3 CI <--- DBS .229 .207
4 SI <--- CBS.DBS .205 ***
5 CI <--- CBS.DBS .056 .071
6 CI <--- CBS -.044 .775
7 BP <--- SI .624 ***
8 BP <--- CI .460 ***
CONCLUSIONS AND RECOMENDATIONS
This section will focus on evaluating and analyzing the results of this study compared with the 
past studies. The next section will focus on solutions and recommendations to promote the 
integration among members in the fishery supply chain in Ben Tre.
The relationship between risks, supply chain integration and business performance
The study results showed that the variables of risk in the supply chain that affect the 
supply chain integration, including supply risks and market risks, risks from information sources.
Particularly, the risks from supply related inversely to link with suppliers. This was proved by 
past studies in this field (Frohlich, 2002; Zsidisin, 2003; Zhao et al., 2013); however, it is contrary 
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to the theory of the relationship between the environment and the organization. While this theory 
suggests that the more unstable the environment, the more demanding the business is in order to 
limit that instability. The results of this study also indicate that the risk from the supply does not 
have an impact on customer integration. This is in contrast to previous studies (Frohlich, 2002; 
Zsidisin, 2003; Zhao et al., 2013). Market risk impacts the forms of association with both the 
customer and the supplier. This is in line with the research done by Jaffee et al. (2010). Risk from 
information sources only affects the degree of linkage between firms and suppliers (Christopher 
and Lee, 2004). However, this risk does not affect the association with customers, as opposed to 
the results of studies by Lee et al. (1997). In addition, the risk from the environment is quite 
surprising when there is no impact on supply chain integration. This is absolutely contrast to 
previous studies (Khan and Burnes, 2007). Finally, supply chain integration in turn has a positive 
impact on business performance. The results in this case study are consistent with previous 
studies, which suggest that the relationships with suppliers and customers affect business 
outcomes ( Rosenzweig et al., 2003; Paulraj and Chen, 2007; Li et al., 2006). The above results 
show that managers need to pay more attention to risk management in the supply chain, 
especially the risks from supply, market risk and risk from the information. Effective risk 
management improves the relationships between actors in the supply chain and hence improves 
sustainable competition and business efficiency.
The relationship between strategy, supply chain integration and business performance
The relationship between strategic orientations and form of integration will influence 
the business performance supported in this study. This result reinforces the relevance of the 
theory of the relationship between strategy, organizational structure and business performance
(SSP). The low cost strategy affects the degree of integration among business organizations, 
suppliers and customers. This has also been confirmed in previous studies (Grant, 
1991). However, customer-oriented strategies only affect customer integration, in line 
with Lambert's (2004) and Lee (2004) studies. This is also understandable because customer-
oriented strategies also mean doing more to satisfy customers. One of the important activities is 
to understand and stick with the customer, so that the strategy and action is appropriate through 
the production and delivery of the right products and services that customers need. The results 
are not only true for organizations that follow by a single business strategy but also for 
enterprises which use the combined strategy have impact on supply chain integration which in 
turn affect business performance. 
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Contribution and limitations of the study
Theoretical contribution
This study validated and clarified the impact of supply chain integration on business 
outcome. Although there is quite a lot of research on this relationship, validating a 
relationship that has not yet yielded consistent results is still necessary to clarify the nature 
and the theoretical system (Fabbe-Costes and Jahre, 2008). Further evidence from a particular 
industry in a developing country would provide a meaningful comparison to previous studies 
primarily conducted in developed countries.
Testing the relationship between risk, supply chain integration and business 
performance confirms the theory of the relationship between the environment and 
organizational structure in supply chain management (Aldrich and Pfefer, 1976). This also 
confirms that the environment has an impact on organizations and organizations need to change 
in organizational structure in order to adapt new environment. At the root of the supply chain, 
organizations need to change in the direction of supply chain integration to match changing 
trends in the current environment. In particular, due to competitive pressure and high global 
specialization, businesses have to change their structure in the direction of linking and
developing their relationship in order to increase efficiency and sustainable competitiveness.
Clarifying the relationship between strategy, supply chain integration and business 
performance also contributes to determine the correctness of the theory of strategic 
relationships, organizational structure and business outcomes (Chandler, 1962). William,
1975) in the supply chain. Thus, organizational change is not only due to environmental 
change, external volatility and risk but also to internal demand. Business strategy is one of 
the most important thing. This research has contributed to explaining the impact of combined 
strategies on the level of integration as well as the improvement of business performance of 
organizations.
Practical contribution
This research provides managers insight view about the impact of supply chain 
integration on business outcomes. To improve business performance, organizations need to 
strengthen the integration not only with suppliers but also with customers; as both types of 
integration have a positive impact on business performance.
This research also helps managers understand the important role of identifying and 
mitigating the impact of risk on supply chain integration. Measures must be taken to identify 
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the types of risks that occur from the supplier, market, information and environment. The 
next step is measuring the magnitude of the impact on supply chain integration. Finally, 
possible solutions will be introduced to limit the impact of these risks.
Lastly, the thesis also shows the influence of business strategy on supply chain 
integration. Managers need to identify the organization's business strategy in line with the 
current supply chain context in order to determine the form and degree of integration that can 
deliver optimum business performance. 
Some limitations of the study
The first limitation of the study is to conduct data surveys in short-term. While the 
impact of supply chain integration on business performance generally takes place over a 
period of time. Therefore, future studies should test this relationship over a period of time 
large enough to produce more accurate results.
The second limitation of the study is to measure the performance of the enterprise by 
qualitative indicators. In addition, the scales depend heavily on the perception of the 
respondents to fill in the questionnaire. Therefore, future research should use quantitative and 
objective data that will give better results. 
Finally, this study was conducted in Ben Tre province and the results of the research 
can only be applied to some provinces in the Mekong Delta, where the context is similar to 
Ben Tre province. This study is difficult to apply to provinces in other parts of 
Vietnam. Therefore, further studies should be conducted in other regions to provide a more 
comprehensive overview of the study of the fishery sector in Vietnam.
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