The aim of this study is to examine the effect of supply chain integration on operational performance in case of Bahir Dar city natural water bottling factories. A cross-sectional quantitative research method was employed and stratified sampling was used to select 250 participants of the study. Moreover, explanatory research design was applied and primary data source was used. The Results of the study shows internal integration is the most significant factor affecting the effect of supply chain integration on operational performance of companies with a value of (0.553) followed by customer integration (0.199), supplier integration (0.178) and ICT integration (0.092). Internal integration is found the most determinant factor among supply chain dimensions in affecting company’s operational performance. It is recommended for natural water bottling factories that they should keep their performance in internal integration which is contributing the highest among supply chain integration dimensions.