Modeling The Effects of Supplier and Customer Integrationon Business Performance and ‎Competitiveness: The Mediating Role of Internal Integration among Coffee and Tea Shops in ‎Batangas City

  • Authors

    • Jenny D. Alvarez Batangas State University- The National Engineering University
    • Ronnel Z. Cabael Batangas State University- The National Engineering University
    • Michelle R. Candelario Batangas State University- The National Engineering University
    • Mary Rose E. Digno Batangas State University- The National Engineering University
    • Joanna Marie P. Parala Batangas State University- The National Engineering University
    • Dr. ‎Nickie Boy A. Manalo Batangas State University- The National Engineering University
    • Dr. Gemar G. Perez Batangas State University- The National Engineering University
    • Dr. Gregoria J. Doble Batangas State University- The National Engineering University
    https://doi.org/10.14419/yyk4pp72

    Received date: November 9, 2025

    Accepted date: December 6, 2025

    Published date: December 17, 2025

  • Business Competitiveness; Business Performance; Customer Integration; Internal Integration; Supplier Integration

  • Abstract

    This study modeled the effects of supplier and customer integration on the business performance and competitiveness of coffee and tea ‎shops in Batangas City, with internal integration examined as a mediating factor. Anchored in the Resource-Based View, supply chain ‎integration was treated as a strategic capability that supports operational efficiency and competitive advantage. The study aimed to assess the ‎extent of supplier, customer, and internal integration; measure business performance and competitiveness; test direct and mediated effects; ‎determine group differences; and propose strategies for improvement. A quantitative descriptive–correlational design was employed. Using ‎Raosoft sampling, 102 respondents were drawn from 138 registered shops. Data was gathered through a researcher-developed Likert-scale ‎questionnaire and analyzed using descriptive statistics, multiple regression, ANOVA, and Structural Equation Modeling. Results showed high ‎levels of supplier, customer, and internal integration, and business performance and competitiveness were rated to a great extent. Customer ‎integration significantly influenced internal integration and competitiveness, while internal integration predicted business performance. ‎Internal integration partially mediated the effect of customer integration on performance, while supplier integration showed no direct ‎significant effect. ANOVA results indicated significant differences based on firm size and organizational position. Several recommendations ‎are proposed. Coffee and tea shops should develop long-term supplier partnerships supporting joint product development, quality ‎improvement, and sustainability. To strengthen customer retention, loyalty programs must shift toward data-driven, membership-based ‎approaches with personalized rewards. Continued adoption of POS analytics, CRM platforms, and innovative service models can improve ‎efficiency and customer engagement. Since organizational position shapes perceptions of competitiveness, targeted staff training and ‎employee engagement are essential. SMEs may consider forming alliances or cooperatives for collective sourcing and shared logistics. ‎Sustainability and ethical sourcing should be embedded into operations, as ESG-driven practices enhance competitiveness and customer ‎loyalty. Future research may explore mediators such as digital transformation or knowledge sharing and examine moderating effects of ‎changing market and technological conditions‎.

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  • How to Cite

    Alvarez, J. D. ., Cabael, R. Z. ., Candelario , M. R. ., Digno, M. R. E. ., Parala, J. M. P. ., Manalo, D. ‎Nickie B. A. ., Perez, D. G. G. ., & Doble, D. G. J. (2025). Modeling The Effects of Supplier and Customer Integrationon Business Performance and ‎Competitiveness: The Mediating Role of Internal Integration among Coffee and Tea Shops in ‎Batangas City. International Journal of Basic and Applied Sciences, 14(8), 351-361. https://doi.org/10.14419/yyk4pp72