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In this study, the effect of supply chain integration on the SME's (Small and Medium Sized Enterprises) competition capability and performance is attempted to be investigated. The data is gathered from the conducted surveys with 181 SMEs. Regression models have been built between supply chain integration and competition capability and by building hierarchical regression models between competition ability, supply chain integration and performance, the effects are attempted to be determined. As a result, it is found that supply chain integration affects competition capability positively and competition capability partially affects performance positively. It is also found that supply chain integration has very little effect on business performance; affects only market performance positively.
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