MEDIATING EFFECT OF CUSTOMER INTEGRATION ON THE RELATIONSHIP BETWEEN CUSTOMER ORIENTATION AND SUPPLY CHAIN PERFORMANCE

Abstract

Marketers are encouraged to be customer-centric and delight the customers. How well petroleum marketers live up to this commitment remains a debatable area of research. The aim of this study is to examine the mediating effect of customer integration (CI) on the relationship between customer orientation (CO) and the supply chain performance (SCP) in the downstream petroleum sector. This study employed the descriptive survey design through a cross-sectional strategy. A total of 253 copies of questionnaires were distributed to managers of filling stations located in Abuja metropolis and the surrounding local government councils in Nigeria. A total of 211 copies were returned and 192 were found usable. The sampling method adopted was the simple random sampling. Descriptive statistics using mean and standard deviation, exploratory factor analysis (reliability and factor loading) as well as structural equation modelling were the techniques of data analysis. The study found that CI has full mediating effect on the relationship between CO and SCP. CO → CI (β = .91, p < .001), Ci → SCP (β = .82, p < .001), CO → SCP (β = .15, p > .005). The study concluded that CI is the mechanism through which CO influences SCP. Practically, it is expected that the best practices identified will utilized by managers and marketers to achieve competitive advantage. The study will also help to find a sustainable solution to the recurring fuel scarcity in Nigeria. Theoretically, the transaction cost theory was used to explain how customer orientation and customer integration will be combined to enhance supply chain performance.