Design, building and validating a measuring scale for the supply chain management practices of industrial organizations by assessing their efficiency on SCM measures

Abstract

The aim of this study is to design, build and validate a scale for the measurement of Saudi industrial Organizations' SC Management Practices (SCMP), and also to evaluate its efficiency at various SCM measurements. The analysis identified 20 constructs of (SCMPs) based on a comprehensive literature review; namely Strategic Partnership of Suppliers (SPS), Customer Relationship (CR), Information Sharing (IS), Information Quality (IQ), Postponement (PST), Agreed Vision and Goals (AVG), Sharing of Risks and Rewards (SRR), Lean Manufacturing (LM), Total Quality Management (TQM), Organizational Culture (OC), Information and Communication Technology (ICT), Benchmarking and Performance Measurement (BPM), Agile Manufacturing (AM), Outsourcing (OUT), Just In Time Manufacturing (JIT), Green SC Management (GSCM), Reverse Logistics (RL), Vendor Managed Inventory (VMI), Radio Frequency Identification (RFID), and SC Integration (SCI), and four SCM performance structures in particular namely; Flexibility Perspective (FLP), Efficiency Perspective (EFP), Customer’s Perspective (CSP), Product Innovation Perspective (PIP). A survey tool based on the existing literature was developed and relevant data were collected from 351 Industrial Saudi organizations on this tool. In the data analysis the validation of the instrument is mainly carried out with confirmatory factor analysis in terms of unidimensionality, durability, convergent validity, discriminant validity, nomological validity, and the associated validity criteria. A parsimonious instrument that makes an important contribution to the SCM literature is generated by the results of this research. The instrument will allow an enterprise to incorporate various SCMPs, to keep track of the implementation status, and then to evaluate SCM performance to the SCM dimensions.