Most organisations in different sectors are implementing Supply Chain Management Practices (SCMPs) to create faster, more effective, and cost-beneficial relationships between business partners, to increase their Operational Performances. Even though the firms use SCMPs, their knowledge regarding the effectiveness of these practices is questionable. The aim of this study was to identify the most influential SCMPs on the Operational Performances of the Sri Lankan manufacturing industry. As to the literature and due to the high level of applicability in the manufacturing sector, five factors; Supply Relationship Management, Customer Relationship Management, Information Sharing, Logistics, and Outsourcing of Services were selected to conceptualize the current study. The Operational Performance of a Manufacturing organization has defined as the performance related to the quality, cost, delivery, and flexibility to change the volume. This was a cross-sectional questionnaire based survey which is quantitative in nature and primarily concerned with the testing of hypotheses. A set of 37 close-ended questions used to collect data from 200 randomly selected organizations. However, due to the difficulties faced in the pandemic environment, the success rate was 58.5%. Results of the Correlation Analysis confirmed the relationships hypothesized according to the theoretical behaviour with positive relationships significant at a 1% level. The strongest relationship shows between Logistics and Operational Performances (0.832). Regression Analysis showed significant impacts of Supplier Relationship Management (β=0.276) and Logistics (β=0.261) on the Operational Performance. Customer Relationship Management, Information Sharing, and outsourcing were not showed a significant impact on the Operational Performance at the 5% level. The adequacy of the fitted model is 67% and the RMSE is 0.236. The residual analysis also ensured the accuracy of the model with normally distributed residuals, free of Multi-collinearity, and having homoscedasticity which emphasises the constant variance of the residuals. The findings emphasise that if the SCMPs is running at a righteous level, an organization can keep their Operational Performances at a higher level. However, only the Supplier Relationship and Logistic activities are the factors significantly influencing the Operational Performances of the Manufacturing sector in Sri Lanka. Similar to the facts highlighted in the literature, the responses of the current study also showed a poor level of handling and utilizing customer feedback for the development of Sri Lankan organizations. Information sharing also showed a poor focus on integrating and enhancing the IT systems. The uncontrollable circumstances due to outsourcing the services lead to a poor level of operational performance at the finale. This research contributes to the existing Supply Chain Management literature by providing empirical evidence from the Sri Lankan manufacturing industry.
Supply chain performance (SCP) can be determined through many factors such as technical factors and relationship factors. The relationship factors mainly focus on the supply chain linkages (SCLs) created with the upstream and downstream supply chain partners. Therefore, the SCLs such as Power, Benefits, and Risk Reduction are important to any industry to enhance their SCP. This paper examines the level of impact of the Power, Benefits, and Risk Reduction on the SCP. The SCLs and the SCP are analyzed and compared using two types of industries as Apparel (AI), and Food & Beverages (F&BI) that established in Free Trade Zones in Western Province Sri Lanka. A total of 138 Managers in the fields of Supply Chain (SC) related activities were surveyed (88-AI, 50-F&BI) through a self-administrative questionnaire. Risk Reduction and Power together demonstrate a significant influence on the SCP in manufacturing sector in Sri Lanka. Further, 'Industry type' moderates the relationships of Power to SCP and Risk Reduction to SCP but not the Benefits to SCP. In F&BI, the Power, Benefits, and Risk Reduction demonstrate significant (5% level) relationships with SCP but, the Power is not showing significant (5% level) relationship with SCP in AI. In F&BI, Risk Reduction and Benefits together demonstrate significant influence on SCP. But in AI, Benefits with the Power demonstrate significant influence on SCP. AI shows higher level of SCP than the F&BI, when the same level of Power and Risk Reduction apply to their own Supply Chain.
The manner by which a firm’s supply chain adapts to environment dynamics demands greater attention because the frequency and speed of change vary from industry-to-industry, business-to-business. Building on the relationship between manufacturing strategy and the environment, the purpose of this paper is to analyze the direct impact of environmental dynamism on supply chain flexibility, and the indirect impact of achieving supply chain flexibility the environment requires through organizational ambidexterity in the Sri Lankan textile and apparel industry, an industry under increased pressure to be more flexible and the highest export revenue contributor to the economy. A positivism paradigm provided the foundation for this explanatory research. A cross-sectional survey method was used to collect data from operations or supply chain managers across firms in the Sri Lankan textile and apparel industry. Eighty-seven responses were received and analyzed using the SmartPLS software. As a preliminary result, this study finds that there is a significant positive impact of environmental dynamism on supply chain flexibility and this relationship is partially mediated by organizational ambidexterity. Moreover, the results reveal a significant positive impact among the variables; environmental dynamism, organizational ambidexterity, and supply chain flexibility. In the practical context, managers need to be aware of environmental changes to identify areas that require investment in flexibility as it incurs both costs and risks for a firm. Practicing organizational ambidexterity helps managers to refine existing processes to maintain competitive advantage, and achieve the optimal degree of flexibility required by the firm and its environment.
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