The effect of supply chain management practices on supply chain and manufacturing firms’ performance

Abstract

Purpose – This paper theorises and develops seven dimensions (strategic supplier partnership, level of information sharing, quality of information sharing, customer service management, internal lean practices, postponement and total quality management) into a SCM practices (SCMPs) construct and studies its causal relationship with the conceptualised constructs of supply chain performance (SCP) and manufacturing firms’ performance (MFP). The study also explores the causal relationship between SCP and MFP. \ud Design/Methodology/Approach – Data was collected through a survey questionnaire responded by 249 Jordanian manufacturing firms. The relationships proposed in the developed theoretical framework were represented through three hypotheses: H1: there is a significant relationship between SCMPs and SCP; H2: there is a significant relationship between SCMPs and MFP; and H3: there is a significant relationship between SCP and MFP. Linear regression, ANOVA and Pearson correlation were used to test the hypotheses. The results were further validated using structural equation modelling (SEM). \ud Findings – The results indicate that SCMPs have a positive effect on SCP (H1), which in turn also positively affect MFP (H3). Despite this intermediary positive effect of SCMP on MFP through SCP, the study also suggests that SCMPs have a direct and positive effect on MFP (H2). \ud Practical Implications – This study provides hard evidence indicating that higher levels of SCM practices can lead to enhanced supply chain and firms’ performance. It also provides SC managers of manufacturing firms with a multi-dimensional operational measure of the construct of SCMPs for assessing the comprehensiveness of the SCM practices of their firms.\ud Originality/Value – This study is among the very first SCM researches conducted on the Jordanian manufacturing sector, particularly, in relation to the practices that manufacturing firms in this country need to adopt to make their supply chains a solid competitive vehicle for their development. The results have broader implications for all manufacturing companies, particularly in developing economies where the growth of manufacturing and the development of integrated supply chains are key stages in economic development

The Sustainable Effect of Operational Performance on Financial Benefits: Evidence from Chinese Quality Awards Winners

“…The coefficients of lead time were negative −0.2269 (Table 5, Model 7). These results suggest that customer responsiveness generates better market share and financial performance by shorter order-to-delivery time and faster customer response time [26]. These findings are also aligned with Droge et al [69], who showed that time-to-product and responsiveness benefit ROA and ROS by minimizing the delivery speed and providing customer service.…”

“…Previous studies had two shortcomings considering these four operational dimensions (delivery, flexibility, cost, and inventory). First, the measurement of these dimensions was proposed in a set of question items [26]. Although the effects of operational performance on financial performance can be found in these studies, we consider that measurable variables are more suitable rather than subjective feelings in the questionnaire.…”

The Effect of Middle Manager Engagement on SCM Performance through ERP System and SCM Practices

“…Effect of SCM practice positive to the SCM performance [6]. Another research by Al-Shboul et al, [11] also confirms that the SC practice brings influences on the SC performance in the manufacturing companies.…”

“…The implemented supply chain practice to reach the optimal SC performance needs some integration across internal functions within the company and external parties as suppliers and customers [10]. SC practice is with indicators such as supplier collaboration, flexibility partners, connected and usage of internet, customer focus with satisfaction, lean production system, with internal integration, and quality management system [11]. The SCM practice in retail companies in India as customer relationship management, supplier relationship management, goal congruence, and information sharing [2].…”

“…Company's performance that is measured from SCM includes market performance, financial performance, and customer satisfaction [10]. The research conducted by Al-Shboul et al, [11] reveals that measuring SC performance includes the SC flexibility, SC integration, customer responsiveness, and supplier performance. The indicators used to measure the SC performance in the manufacturing companies for this research are integrated information, perfect order fulfillment, flexibility, responsiveness, and cost reduction.…”