Supply chain management practices as a contemporary source of securing competitive advantage and organisational performance: evidence from the FMCGs of Pakistan

Abstract

The main objectives of the present study are to explore the underlying dimensions of supply chain management practices (SCMP) and to investigate the casual relationship among supply chain management practices (upstream, downstream and internal lean supply chain practices), competitive advantage and organisational performance with specific emphasis on fast moving consumer goods (FMCG) industry of Pakistan. The data were collected from 210 (n = 210) white-collars of FMCG companies operating in Pakistan. Exploratory factory analysis and standardised multiple regression analysis techniques were performed to address research questions. Based on exploratory factor analysis, the 16 SCM practices were grouped into three factors: upstream supply chain practices (USCP), downstream supply chain practices (DSCP) and internal lean supply chain practices (ILSCP). The results of the regression analysis indicate that all three dimensions of the SCM practices have statistically significant effect on competitive advantage and organisational performance. The managerial implications for the effect of SCM practices on competitive advantage and organisational performance are discussed.