Abstract

The aim of the research is to add to the knowledge of supply chain management practices by exploring the relationships among three constructs of supply chain management capabilities (SCMC) including outside–in process capabilities (OIC), inside-out process capabilities (IOC) and spanning process capabilities (SC) as the concepts proposed by Day (1994) and confirmed by the empirical studies provided through Tracey, Fite and Sutton (2004) and Tracey, Lim and Vonderembse (2005) through developing and testing a research framework of supply chain management capabilities and its impact on business performance construct. Based on the literature review, a proposed research model and five hypotheses are developed. The results indicated that there are significant positive correlation between the three constructs of supply chain management capabilities and business performance. Hypotheses (H2 and H4) are supported and accepted, hypotheses (H1 and H3) are supported but partially accepted, and hypothesis (H5) is rejected; therefore, the overall obtained results of testing the research hypotheses supported the proposed relations in the research.

Highlights

  • Organizations are faced with an array of challenges as they strive to compete in today’s dynamic global markets

  • After presenting a brief literature review on the (SCMC) constructs and the business performance construct, the data was collected through a questionnaire which was administrated to a total sample of 250 managers in some companies belonging to three types of Egyptian industrial sector

  • The significant findings of this research, based on the regression analysis methods, can be highlighted as follows; the empirical analysis revealed that three dimensions of the (OIC) construct named as inbound transportation, material warehousing and inventory control-inbound have a strong positive relationship and contribute to explain the variance of all the dimensions of the (IOC) construct in contrast to the product support dimension

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Summary

Introduction

Organizations are faced with an array of challenges as they strive to compete in today’s dynamic global markets. As the concepts proposed by Day (1994) and confirmed by the empirical studies provided through Wisner (2003); Lockamy and McCormack (2004); Tracey et al, (2004) and Tracey et al, (2005), supply-chain management capabilities are classified into three constructs: First: Outside-in capabilities which refer to the group of capabilities that enables the company to compete by forecasting and acting on changes in markets through the development of sound relations with suppliers, channel members, and customers on activities such as inbound transportation, material warehousing, inventory control-inbound, and production support. Third: Spanning capabilities refer to the processes that support the anticipated needs of patrons fulfilled by the business, such as purchasing, customer order processing, strategy development, and information dissemination These three constructs affect the business performance through the following four dimensions: perceived product value, customer loyalty, market performance, and financial performance. Develop the logic of the substantive relationships among the research constructs of the model and state hypotheses

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