The effect of supply chain capabilities on performance of food companies.

Abstract

Given the changing realities of the business environment, supply chain issues have become one of the top priorities of CEOs in different firms. Growing attention to supply chain networks also highlights the importance of using efficient supply chain management practices. The belief that supply chain management can lead to continuous improvement of corporate performance has led CEOs to focus on upgrading the supply chain management process. The main objective of this research is to evaluate the impact of supply chain capabilities on operational and financial performance of food companies. The study population consists of 76 companies operating in the food industry in Ardabil as one of the metropolises of Iran. Given the limited number of population, no sampling method was used and all companies went under scrutiny. A standard questionnaire was used as the data collection tool which was given to the managers of the companies. In order to test research hypotheses, structural equation modeling and PLS software were used. The results of hypotheses testing suggested the significant positive impact of supply chain capabilities on operational and financial performance of food companies. Additionally, the positive impact of operational performance on financial performance of the companies was confirmed. Finally, it was found that operational performance has a mediating role in the relationship between supply chain capabilities and financial performance of the companies.