Investigating Relationships Between Supply Chain Capabilities, Competitive Advantage, and Business Performance

Author(s):  
Navee Chiadamrong ◽  
Tran Thi Tham

Growing in the competitive environment, organizations need to find ways to improve their performance even better by ensuring that all key drivers are being developed and utilized effectively. Thai and Vietnamese food industries are rapidly growing sectors. This study investigates the relationships between supply chain capabilities and competitive advantages towards business performance, and compares the above mentioned relationships between Thai and Vietnamese food industries. The data were gathered from conducted surveys with the food manufacturing companies in both countries, and tested by Structural Equation Modeling. The empirical results show that supply chain capabilities play an important role in business improvement in both countries. While, supply chain integration is considered as a critical factor for the Vietnamese food industry, human resource management is much regarded as important for the Thai food industry. These findings help companies in each country decide the best strategy for differentiating themselves in their business environment.

Author(s):  
Navee Chiadamrong ◽  
Tran Thi Tham

Growing in the competitive environment, organizations need to find ways to improve their performance even better by ensuring that all key drivers are being developed and utilized effectively. Thai and Vietnamese food industries are rapidly growing sectors. This study investigates the relationships between supply chain capabilities and competitive advantages towards business performance, and compares the above mentioned relationships between Thai and Vietnamese food industries. The data were gathered from conducted surveys with the food manufacturing companies in both countries, and tested by Structural Equation Modeling. The empirical results show that supply chain capabilities play an important role in business improvement in both countries. While, supply chain integration is considered as a critical factor for the Vietnamese food industry, human resource management is much regarded as important for the Thai food industry. These findings help companies in each country decide the best strategy for differentiating themselves in their business environment.


2019 ◽  
Vol 6 (4) ◽  
pp. 1379-1394
Author(s):  
Vural ÇAĞLIYAN ◽  
Emel GELMEZ ◽  
Minenur Sezer DİLEK

As a requirement of competitiveness, businesses procure those goods and services which are beyond their own fields of activity from specialized businesses. Based on this requirement, examination of the effect of outsourcing, one of the crucial instruments for businesses in gaining competitive advantage, on sustainable supply chain performance and business performance, is of importance in terms of bringing a point of view on the dimensions of the ongoing competition in sectoral sense and enabling the businesses to assess their own structures. In this context, the effect of outsourcing by businesses operating in food industry in the province of Konya on sustainable supply chain performance and business performance was examined in this study. Structural equation modeling was utilized to analyze the correlation between the variables. While no statistically significant correlation could be determined between outsourcing and sustainable supply chain perforrmance, it was found out that a statistically significant correlation existed between sustainable supply chain performance and business performance as well as between the outsourcing and business performance. 


2005 ◽  
Vol 10 (4) ◽  
pp. 289-301 ◽  
Author(s):  
Cristóbal Sánchez‐Rodríguez ◽  
David Hemsworth ◽  
Ángel R. Martínez‐Lorente

PurposeSupply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply chain success. However, there is little empirical research that has tested the effect of supplier development on performance. The main objective is to analyze the effect of supplier development practices with different levels of implementation complexity on the firm's purchasing performance.Design/methodology/approachThree supplier development constructs were defined: basic supplier development, moderate supplier development, and advanced supplier development. Three structural models were hypothesized and tested using structural equation modeling through field research on a sample of 306 manufacturing companies in Spain.FindingsIdentified important interrelationships among the various supplier development practices, basic, moderate, and advanced. Also indicated that the implementation of supplier development practices significantly contributes to the prediction of purchasing performance.Research limitations/implicationsThe use of a single key informant could be seen as a potential limitation of the study. The study was a cross‐sectional and descriptive sample of the manufacturing industry at a given point in time. A more stringent test of the relationships between the different levels of supplier development and performance requires a longitudinal study, or field experiment.Practical implicationsThis study focused on supplier development practices and revealed how involving suppliers in supplier development activities is important and may help buyers to increase their purchasing performance. The findings from the structural analysis should provide practicing managers with insights on how these practices and their benefits are related in terms of purchasing performance, thus affecting their ability to make better sourcing decisions.Originality/valueFills an important gap in the purchasing literature with respect to the area of supplier development. While there is much written about supplier development based on conceptual and case study research, this study is unique in that it is the first attempt to empirically model the relationships between different levels of supplier development and their impact on purchasing performance using a comprehensive set of practices.


2018 ◽  
Vol 10 (11) ◽  
pp. 4202 ◽  
Author(s):  
Muhammad Waqas ◽  
Qian-li Dong ◽  
Naveed Ahmad ◽  
Yuming Zhu ◽  
Muhammad Nadeem

Globalization policies are encouraging manufacturing companies to produce environment-friendly products that offer a sustainable competitive advantage. Currently, product recovery and zero-waste supply chains have caught the attention of manufacturers and professionals. Reverse logistics (RL) is considered as the most significant part of supply chain management in developed countries; unfortunately, its implementation in developing countries is in the initial stages due to certain barriers. This study aims to identify and verify the barriers to implementation of reverse logistics using a two-stage methodology: the Delphi Method and Structural Equation Modeling. A comprehensive literature review was considered to identify a primary set of barriers. Using the Delphi Method, a team of experts screened out barriers after performing three iterations. A survey-based questionnaire was then sent out to supply chain and logistics employees in the manufacturing industry and relevant government authorities. Five hundred and forty-seven useful responses were analyzed in the Statistical Package for the Social Science (SPSS) & AMOS 21 softwares using Structural Equation Modeling to verify barriers, and ranked according to their severity. The most critical barriers with respect to each category are: high cost of reverse logistics adoption (finance and economics), lack of skilled professionals (knowledge and experience), lack of government supportive policies (law and regulation), poor organizational culture (management), lack of human resources (infrastructure and technology), lack of environmental law awareness (environment), lack of community pressure (market) and company policies (reverse logistics in policy). Overall, the top five barriers found in this study include lack of initial capital, lack of skilled professional in RL, companies’ policies against RL, lack of new technologies and information systems, and lack of community pressure. Knowledge about barriers to reverse logistics allows manufacturing companies to prepare a priority list of actions for better implementation of the reverse logistics system.


2019 ◽  
Vol 1 (1) ◽  
pp. 68-87 ◽  
Author(s):  
Mohammed Belal Uddin ◽  
Bilkis Akhter

PurposeThe purpose of this paper is to investigate the institutional and significant competences that have allowed organizations to employ supply chain management (SCM) practices, the practices of SCM and the benefits of SCM practices for both buyers and suppers.Design/methodology/approachA theoretical model (including hypotheses) has been proposed regarding antecedents, SCM practices and outcomes of SCM. Using purposive sampling method, data were collected from different manufacturing, distributing, wholesaling and retailing organizations. Collected data were analyzed in a principal component analysis and structural equation modeling, including confirmatory factor analysis, and path analysis.FindingsThe empirical results provided supportive evidences in favor of the hypotheses and theoretical arguments except one hypothesis. This study did not a find positive relationship between organizational compatibility and SCM practices. The study found relationships between mutual trust and SCM practices, communication and SCM practices, and cooperation and SCM practices, which were positive and significant. Again, the relationships between SCM practices and competitive advantages, and SCM practices and long-term orientation and growth were also positive and significant.Practical implicationsPractitioners could also use the findings to align SCM with business strategy and gain an insight for better utilization of the available resources and technology to perform better.Originality/valueThis study will provide guidance as to the preconditions that need to be in place in order for a company to implement SCM with its suppliers and customers. It will remind practitioners to stay focused on the ultimate goals of SCM – lower costs, increased customer value and satisfaction, and, ultimately, competitive advantage.


2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan

Purpose It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR). Design/methodology/approach The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China. Findings The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance. Practical implications Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment. Originality/value Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.


2019 ◽  
Vol 25 (4) ◽  
pp. 625-646 ◽  
Author(s):  
Hassan Barau Singhry ◽  
Azmawani Abd Rahman

Purpose Despite the importance of collaborative planning, forecasting, and replenishment (CPFR), its influence on supply chain innovation capability (SCIC) and supply chain performance (SCP) has not been sufficiently examined. The purpose of this paper is to examine the antecedence of SCP through CPFR and SCIC. Design/methodology/approach Through cluster and stratified random sampling, 286 responses from top managers of 1,574 Nigerian manufacturing companies were analyzed. Data analysis was performed using structural equation modeling with AMOS graphics. Findings The results show that SCIC has a full mediating effect on the relationship between CPFR and SCP. Specifically, CPFR has a significant relationship with both SCP and SCIC, and SCIC also relates significantly to SCP. Practical implications This study offers implications for manufacturers in developing countries in general, and in Nigeria in particular, by providing a guideline on how to improve SCP through CPFR. Originality/value The paper contributes to the limited studies on CPFR and SCP by extending this line of study into the realm of innovation capability and innovation. It integrates the social exchange theory and the dynamic capabilities theory to examine the collaborative processes of CPFR in the supply chain context. This study stressed the importance of boundary theoretical spanning by extending CPFR and SCP into the domain of innovation capability.


2020 ◽  
Vol 27 (5) ◽  
pp. 1717-1737
Author(s):  
Reza Salehzadeh ◽  
Reihaneh Alsadat Tabaeeian ◽  
Farahnaz Esteki

PurposeThe purpose of this study is to examine the impacts of different forecasting methods (judgmental, quantitative and mixed forecasting) on firms' supply chains and competitive performance.Design/methodology/approachWorking with three groups of manufacturing companies, we explore the consequences of judgmental, quantitative and mixed forecasting methods on firms' competitive performance in supply chains. The validity of constructs and path relationships was examined using structural equation modeling (SEM).FindingsOur findings indicate that supply chain efficiency influences both cost reduction and customer satisfaction. In addition, the three dimensions of supply chain performance are shown to be direct antecedents of competitive performance. Our empirical results reveal that although all studied forecasting methods meaningfully influence supply chain performance, the mixed method, compared to the other two methods, has greater capabilities to enhance supply chain performance.Originality/valueThis research provides originality and insight into supply chain practices through forecasting methods to improve competitive performance.


2021 ◽  
Vol 13 (16) ◽  
pp. 9059
Author(s):  
Jun-Der Leu ◽  
Larry Jung-Hsing Lee ◽  
Yi-Wei Huang ◽  
Chia-Chi Huang

As a result of the 1997 Kyoto Protocol, numerous countries have become highly interested in sustainability. Manufacturers have been triggered to develop sustainable supply chain strategies in consideration of their value-added processes and stakeholders. This study was conducted, in the context of small- and medium-sized enterprises in the Taiwanese manufacturing industry, in order to examine the relationship between sustainability and business performance from the perspective of the supply chain aspects of business cooperation, operation integration, and enterprise commitment. A total of 290 companies were surveyed and structural equation modeling was applied to analyze the figures from the samples. The results reveal that the implementation of sustainable practices in the context of enterprise commitments, supply chain cooperation, and operation integration has a positive impact on sustainability and business performance. Furthermore, in high-value manufacturing, supply chain cooperation significantly affects sustainable business performance through internal operation integration. These results may serve as a reference for the realization of supply chain sustainability in small- and medium-sized enterprises.


2019 ◽  
Vol 9 (8) ◽  
pp. 1782
Author(s):  
Nikous Soter SIHOMBING ◽  
Anton SIHOMBING

The purpose of this study is to obtain empirical evidence and find clarity of phenomena and conclusions about the influence of business environment and innovation spirit to competitive advantage and its implications on marketing performance. This research uses descriptive and verification method, with data analysis technique of Structural Equation Modeling (SEM) LISREL program, that is collecting, presenting, analyzing, doing model measurement, and hypothesis testing, and making conclusion and suggestion. The population is owner / leader of SMI weaving ulos which is targeted group by Industry and Trade Office of North Sumatera Province, while sample selection is done proportional cluster stratified random sampling and sample determination by Slovin formula.  The results of this study showed that the business environment, innovation spirit, competitive advantage, and overall marketing performance are in good category. Similarly, the verify analysis proves empirically that (1) the business environment and innovation spirit significantly and positively affect the simultaneous competitive advantage, where the innovation spirit has a dominant influence, (2) the business environment has a significant and positive influence on the competitive advantage, (3) innovation spirit significantly and positively influence to competitive advantage, (4) competitive advantage significantly and positively influence to marketing performance.


Sign in / Sign up

Export Citation Format

Share Document