The association between organizational performance and supply chain management practices

Abstract

Firms' activities to govern their supply chains are defined as supply chain management practices. This research explores a model that describes the association between organizational performance and supply chain management practices. Based on existing research, a theoretical framework for the investigation was established. A standardized questionnaire was developed to gather data for the research, which was completed by 396 supply chain professionals from Saudi Arabian food companies. Partial least square (PLS)–structured equation modeling was used to examine the model and hypotheses. Four independent variables were chosen to scrutinize the impact of supply chain management strategies on organizational performance: customer relationship, strategic supplier partnership, level of information sharing, and postponement. According to the research, customer relationships, strategic supplier partnerships, and information sharing all have a major impact on organizational performance. On the other hand, the postponement has no significant impact on organizational performance.