Supply chain management and logistic presentation: Mediation effect of competitive advantage
Supply chain management (SCM) practices havebecome strategic resources and capabilities forenhancing both competitiveadvantage logistic performance (ORGPER). However, it is not clearhow SCMPractices influence logistic performance in the agribusiness context. However,themechanism of SCMPs effects is not yet understood since extant literature hasproduced mixedresults. Hence, this study sought to test the impact ofmediation of the competitive advantage ofrelations between SCMP and ORGPERfrom the point of view of Kenya's dairy supply chain.The study examined fourestimates that were tested using partial minimum square structuralequationmodeling (PLS-SAME) techniques to work out the purpose of the study. Acrossdepartmental survey design has been used to collect preliminary data from109 dairy cooperativesin thirteen major dairy producing counties in Kenya. Theresults reveal that SCM practice has apositive and significant effect on CA(P=0.730) and ORGPER (P=0.237). In addition, THERE isa positive, statisticallysignificant effect on THECAORGPER (P=0.522). Further results showthat CAmediates the relationship between SCMP and ORGPER. Consequently, thestudyconcludes that SCMPs first generate CA, which in turn enhances ORGPER in a logisticsense.Theoretically, the study provides insights on the resource-based view theory aswell as aconceptual framework for its validation. Similarly, the study informsmanagers and policymakersin knowing specific SCMPs to focus on to enhance CAand ORGPER of the dairy cooperativesin Kenya.