Empirical Relationships of Perceived Environmental Uncertainty, Supply Chain Collaboration and Operational Performance: Analyses of Direct, Indirect and Total Effects

There are two aims of this study: one is to analyze the relationship among perceived environmental uncertainty, supply chain integration and operational performance and the other is to test direct, indirect and total effects among the variables. To achieve the aims of this study, various research methods were used. The population is Korean firms in China. Questionnaires were sent to the sample firms, and 208 data were used in the analysis. Validity and reliability of measuring items were verified by a confirmatory factor analysis, and the causal links among the variables were verified by a structural equation modeling analysis. The results are as follows. First, the relationship between perceived environmental uncertainty and supply chain integration is the causal link. Environmental uncertainty is an antecedent of supply chain integration and this is explained by information processing theory. Second, supply chain integration has a positive effect on operational performance. To improve performance, managers have need of interaction with suppliers and customers as well as inter-departments. Third, there is no direct effect between environment and performance but there are direct, indirect and total effects among the variables. The negative effect of perceived environmental uncertainty on performance (direct effect) is changed with positive effect (indirect and total effects). This is explained by fit as mediation by Venkatraman (1989).