The impact of supply‐chain management capabilities on business performance

Abstract

PurposeThe purpose of this article is to empirically test the impact of supply‐chain management (SCM) capabilities on business performance so as to determine to what degree customer‐oriented SCM issues influence competitive position and organizational performance.Design/methodology/approachA rigorous methodology is employed to generate a reliable and valid measurement instrument. Responses from 474 manufacturing managers are then utilized to test a causal model using LISREL®.FindingsThe results indicate significant positive relationships exist among three types of SCM capabilities (outside‐in, inside‐out, and spanning) and business performance (perceived customer value, customer loyalty, market performance, and financial performance).Practical implicationsThe article demonstrates that strategically developing SCM capabilities such as efficient inbound and outbound transportation, warehousing, and inventory control, production support, packaging, purchasing, order processing, and information dissemination enable a manufacturing firm to identify and take advantage of opportunities in the global marketplace.Research limitations/implicationsThe sample was drawn from manufacturing firms in the USA across four SIC codes. Future studies could collect more extensive data to confirm, refine, and expand upon the model presented and the associated construct measures utilizing confirmatory factor analysis. Extending the research to include additional industries and firms from outside of the USA would enhance the generalizability and usefulness of the findings.Originality/valueThe paper statistically validates that managers should regard the cultivation of SCM capabilities as a proprietary resource that facilitates competitive advantage. It also contributes a concise instrument that may be used by academics interested in the areas of supply‐chain management processes and firm performance.

Customer integration and operational performance: The mediating role of information quality

“…Curkovic et al, 2000;Fawcett et al, 2000;Rosenzweig et al, 2003;Swink et al, 2005;Tracey, 2005;Jacobs et al, 2007;Lau Antonio et al, 2007;Swink et al, 2007). In fact, it has even been indicated that it is now conventional wisdom that superior manufacturing capabilities in dimensions of quality, delivery, flexibility, and cost enhance organizational performance as measured by market and financial performance (Rosenzweig et al, 2003).…”

“…Li, 2000;Fawcett et al, 2000;Tracey, 2005;Yu et al, 2014); however, results are mixed (e.g. Lau Antonio et al, 2007;Rosenzweig et al, 2003;Swink et al, 2007).…”

A survey based analysis of IT adoption and 3PLs' performance

“…The general body of literature on logistics services (Bradley, 1994;Sum and Teo, 1999, Panayides, 2004, Gopal and Cline, 2007 confirms our assumption. Moreover, the few studies focused on this specific issue explicitly draw a clear connection between services and capabilities both in the logistics (Lynch et al, 2000) and supply chain management field (Tracey et al, 2005). Although logistics tasks may not be limited to the logistics services offered by 3PLs to the market, this connection allows us to measure logistics capabilities in an objective way.…”

Examining sustainability performance in the supply chain: The case of the Greek dairy sector

“…Good quality packaging with enhanced labelling could positively impact the economic performance of SC members (Tracey, et al 2005) through cost savings due to reduced packaging waste (Carter & Rogers 2008). Packaging of good quality is likely to become increasingly important as regulatory and/or consumer demands for returnable or recyclable packaging increase (Angell & Klassen 1999).…”