The effect of supply chain management practices on the operational performance of an organization has been extensively investigated in literature. Comparatively, few studies gave attention to the effect of these practices on the organization's financial performance. This apparent deficiency in literature and particularly for developing countries motivated the current study which aims at examining the effect of supply chain management practices on financial performance of the manufacturing and service organizations in the Kingdom of Bahrain. The comparison between these alternatives was designed by composing multi-criteria decision making of supply chain management practices in order to improve financial performance of the organization. To deal with the complexity of the intended comparison, the analytic hierarchy process has been implemented. The relevant data were collected from two manufacturing organizations and two service organizations using a self-administered questionnaire that has been specifically developed by the researchers to address study objectives along with a planned interview to gather more detailed information about the selected organizations. The corresponding results showed that accurate forecasting of demand management has the highest priority weight in both alternatives. Moreover, inventory management was found to be the second highest important practice with respect to manufacturing-supply chain while it was the least important practice when service-supply chain is concerned. Furthermore, collaboration seems to be more important than integration in both alternatives. An implication of these results is that manufacturing as well as service organizations can increase their financial performance by using identified supply chain practices.
This research examines the impact of the efficient working capital management on financial leverage of listed industrial companies in Bahrain Bourse, which is a non-tax charging country. Moreover, it is investigated the optimal capital structure by balancing from one hand, issuing debt as monitoring tool. It utilized the descriptive evaluative type of research. An organizationally based, descriptive portion of design was pursued using relevant data from both primary and secondary resources. The main findings of this research are as follows: Firstly, the Reliability Test shows that the Cronbach's Alpha is 0.936 and so there is very strong reliability in the data among all variables in this study. Secondly, the Means for all variables are more than 4 in the 5points-Likert-scale, which means that the respondents confirmed the effectiveness of these variables. Thirdly, the p-values of the independent variables: Days Inventory Outstanding, Days Sales Outstanding, and Days Payable Outstanding in association with the dependent variable: Debt-Equity Ratio is all 0.000, which is smaller than 0.01, level of significance, and there is extremely strong evidence of significant relationships between all independent variables and Debt-Equity Ratio. Fourthly, no significant difference among the four industrial companies means that there is high validity of the results. Finally, Days Inventory Outstanding is the most critical issue in attaining the optimal cash conversion cycle with 88.5%. The main findings of the study show that there are significant relationships between independent variables and dependent variables. In addition, there are no significant differences among the four listed industrial companies. Finally, the most critical issue to attain the optimal cash conversion cycle is ability to manage the Days Inventory Outstanding. The second critical issue is to manage the Days Sales Outstanding and the least one is the Days Payable Outstanding.
common supply chain management practices (supplier partnership, customer relationship, information sharing, and lean system), net trade cycle, and financial performance. It consists of nine hypotheses concerning the relationships of the aforementioned factors that have been verified throughout reviewed literature and examined via employing the structural equation modelling technique. This research used data taken from floated questionnaires at three manufacturing companies in the Kingdom of Bahrain. An inclusive review of the literature to retrieve the four most common supply chain management practices has been undertaken and has identified limitations in the research techniques applied. This research has discovered the significant influences of the supplier partnership, the information sharing, and the lean system of the three most common supply chain management practices and the net trade cycle on the financial performance. Although this is the first research that combines the critical relationships among those four most common supply chain management practices, the net trade cycle, and the financial performance in one model, it is important to note that this study was unsuccessful in demonstrating whether there is a significant influence between customer relationship of the most common supply chain management practices and the net trade cycle on the financial performance. Researchers can employ the outcomes of this research to discover several related hypotheses in more details and increase the accuracy of forthcoming empirical relationships among those factors. This research offers particular suggestions for such further research. The outcomes of this research can be utilized by managers to highlight the execution of those four most common supply chain management practices and the net trade cycle in their respective ventures. Moreover, almost all of those relationships are found to have significant influences on the financial performance. Furthermore, the outcomes can be recommended to production managers who may well assign resources to enhance these practices to achieve the greatest outcomes.
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