The Mediating Effect of Customer Loyalty in the Relationship Between Supply Chain Performance, Inventory Management and Quality Management

Abstract

Supply chain management is the systematic, strategic coordination of business tasks engaged in a supply chain to enhance a company’s and a supplier chain’s overall long-term performance. It is also a set of approaches used effectively to integrate suppliers, manufacturers, distributors, or customers to improve the long-term performance of the companies involved and the supply chain itself as a whole. A lack of financial resources is the main obstacle to supply chain management development. This study intends to investigate the mediating effect of customer loyalty on the relationships among supply chain performance, inventory management, and quality management. An electronic manufacturing facility in Penang, Malaysia, served as the site of this investigation. Consequently, 700 individuals were working at this industrial company. This industrial company’s employees were given the questionnaire, which was created. An analysis of the relationship and effects of quality management, inventory management, supply chain management, and customer loyalty on the performance of the product market was performed via nonprobability sampling on a population of 700 employees to generate a sample of 65 respondents based on the PLS-SEM. Several statistical methods were employed in this study, and SMART PLS3 was utilised to analyse the data. The effectiveness of a product in the market was found to be significantly influenced by variables such as customer loyalty, inventory management, supply chain management, and product market performance. The results showed that seven hypotheses had significant connections for all variables. Business owners and other relevant stakeholders are suggested to improve the supply chain, inventory management, and quality management systems in their organisation’s business operations to promote customer loyalty and product market performance for long-term viability. The effort continued during the RMK-9 period by implementing comprehensive policy because more intense competition had to be faced by the industry, including SMEs, due to the existence of globalisation and trade liberalisation