Influence of Customer Relationship on Supply Chain Performance in Telecommunication Industry

The telecommunications industry in Malaysia, a key player in the service sector, significantly influences the country's economic activities. With intensifying competition and growing customer demand for cost-effective, high-quality services, telecommunications companies are compelled to enhance operational efficiency in their supply chain management. Recognizing the importance of knowledge in meeting these demands, this study aimed to explore the relationship between customer relationships and supply chain performance, with a focus on the potential mediating role of logistics integration as well as whether this relationship is mediated by logistics integration. The study was conducted among 361 respondents from 21 Malaysian telecommunication firms in Malaysia by applying a structural equation modeling with SmartPLS. Findings revealed customer relationship associated with supply chain performance and supported. The results indicate that sustaining good customer relationships will increase the likelihood of success. The results were similar to that of past studies which found customer relationship influences supply chain performance and close customer relationship expands the values it supplies to its customers and maintain their allegiance through customer satisfaction.  However, the study found that the mediating effect of logistics integration in the relationship between customer relationships and supply chain performance was not statistically significant. This suggests that while customer relationships directly impact supply chain performance, the role of logistics integration as a mediator was not pronounced in this context. The telecommunications industry, grappling with challenges posed by new technologies and the need for continuous innovation, particularly in value-added services, is also confronted with the churn phenomenon. Customer turnover is particularly acute in this sector, necessitating a careful evaluation of relationships with customers. Despite these challenges, the study underscores the importance of customer relationship management in positively influencing performance outcomes. The implications of this research extend to practitioners in the field, providing valuable insights for decision-making in supply chain management procedures, specifically within the telecommunications industry. Telecommunications managers can benefit from a better understanding of the significance of sustainable customer relationships in achieving positive performance outcomes. However, the study's scope is limited to the telecommunications industry and involves a specific number of respondents