Investigating The Impact of Supply Chain Management Practices on Financial Performance (Case Study: Large Manufacturing Firms in Khuzestan Province)

Document Type : Research Paper

Authors

1 Associate Professor, Faculty of Management, Department of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

2 Assistance Professor, Faculty of Management, Department of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

3 Master of Management, Faculty of Management, Department of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

Abstract

The purpose of the present study is to investigate the impact of supply chain management practices on financial performance of large manufacturing firms in Khuzestan province. The population of this applied research consisted of 180 large manufacturing firms and with using Cochran's formula for limited society, 123 firms were selected. Statistical unit of society were the production / finance managers of said firms and research questionnaire was distributed to them for each firm. The data collection instrument is Thatte (2013) and Inman et al, (2011) questionnaire and which its content validity was evaluated through experts and academics and its construct validity was confirmed through confirmatory factor analysis. Structural equation models and SPSS 18 have been used in order to analysis the data. The results indicate that, supply chain management practices can improve supply chain responsiveness, lead to enhanced competitive advantage and improved financial performance. Also supply chain responsiveness can increase competitive advantage and competitive advantage have positive impact on financial performance.

Keywords

References

1- Abdul Hamid, A., sukati, I., Baharun, R., Alifiah, M. N. & Anuar, M., A. (2012). Competitive advantage through supply chain responsiveness and supply chain integration.international journal of business and commerce. 1)7(, 1-11.
2- Adams, M. E., Day, G. S., & Dougherty, D. (1998). Enhancing new product development performance: an organizational learning perspective. Journal of Product Innovation Management, 15, 403-422.
3- Adebambo, S,. Mcisn, M,. Toyin, A. (2012). Firm’s competitiveness through supply chain responsiveness and supply chain management practices in Nigeria. British Journal of Arts and Social Sciences, 10(1), 42-52.
4- Almajali, A., Alamro, S. and Al-Soub, Y., (2012). Factors affecting the financial performance of Jordanian insurance companies listed at Amman stock exchange. Journal of Management Research, 4(2), 266-289.
5- Andersen, M.L., Dejoy, J.S., (2011). Corporate social and financial performance: the role of size, industry, risk, R&D and advertising expenses as control variables. Bus. Soc. Rev. 116, 237-256.
6- Breen, L. & Crawford, H. (2005). Improving the pharmaceutical supply chain. International Journal of Quality & Reliability Management, 22(6), 572-590.
7- Carr AS, Person JN. (1999). Strategically managed buyers-seller relationships and performance outcomes. Journal of Operations Management,17(5), 497–519.
8- Childhouse, P., & Towill, D. R. (2003). Simplified material flow holds the key to supply chain integration. Omega, 31 (1), 17-27.
9- Chopra, S. & Meindl, P. (2007). Supply chain management, 3rd Edition.
10-Dess, G.G., Robinson, R.B., (1984). Measuring organizational performance in theabsence of objective measures: the case of the privately-held firm andconglomerate business unit. Strateg. Manag. J. 5, 265–273.
11-Donlon, J. P. (1996). Maximizing value in the supply chain. Chief Executive, 117, 54-63.
12-Karimi, E,. Rafiee, M. (2014). Analyzing the impact of supply chain management practices on organizational performance through competitive priorities (case study: iran Pumps Company). International  Journal of Academic Research in Accounting, Finance and Management Sciences. 4(1), 1-15.
13-Ghatebi, M., Ramezani, E., & Enayai Shiraz, M., A. (2013). Impact of supply management practices on competitive advantage in manufacturing  companies of  Khuzestan province.interdisciplinary  journal of contemporary research in business. 5(6), 1-6.
14-Gould, P. (1997). What is agility manufacturing engineer,76(1), 28-3.
15-Handoko, B,. L. Aryanto, R,. So, I,. G. (2015). The impact of enterprise resources system and supply chain practices on competitive advantage and firm performance: Case of Indonesian companies. Procedia Computer Science, 72, 122 – 128.
16-Holweg, M. (2005). An investigation into supplier responsiveness. International Journal of Logistics Management, 16(1), 96-119.
17-Hosieni, A., & Shams (2014). Impact of positive behavior and open innovation on competitive advantage improvement. Management Sttudies (Management Studies in Development and Evolution), 23(75), 137-159. (in persian).
18-Ince, H., Imamoglu, S., Z. Keskin, H., Aliekber Akgun, A., Efe, M., N. (2013). The impact of ERP systems and supply chain management practices on firm performance: Case of Turkish companies. Procedia - Social and Behavioral Sciences, 99, 1124 – 1133.
19-Inman, R.A., Sal, R.S., Green Jr., K.W., Whitten, D., (2011). Agile manufacturing: relationship to Just-in-time, operational performance and firm performance. Journal of Operations Management, 29, 343-355.
20-Ireland, R. D., & Webb, J. W. (2007). Strategic entrepreneurship: Creating competitive advantage through streams of innovation. Business Horizons, 50(1), 49-59.
21-Jabbour, L., A.B, Filho, A., A.G. Viana, N., A.B, Jabbour, C. J. (2011). factors affecting the adoption of supply chain management practices: evidence from the Brazilian electro-electronic sector, IIMB management  review, 23, 208-222.
22-Kainuma, Y. and Tawara, N. (2006). A multiple attribute utility theory approach to lean and green supply chain management. Int. J. Production Economics, 101, 99–108.
23-Kaplan, Robert S-Norton, David P. (1996). Using The Balanced Scorecard as a strategic Management system. Harvard Business Review, 75-85.
24-Kimechwa, V,. K. (2015).  Impact of supply chain management practices on the performance of Banks in Kenya: A case of Postbank. International Journal of Computer Applications Technology and Research, Thesis.
25-Koufteros, X. A.; Vonderembse, M. A., & Doll, W. J. (2002). Examining the competitive capabilities of manufacturing firms. Structural Equation Modeling, 9(2), 256-282.
26-Laudon, K. and Laudon, J. (2002). Information systems management: organization and technology. Prentice Hall.
27-Liao, Z. (2016). Temporal cognition, environmental innovation, and the competitive advantage of enterprises. Journal of Cleaner Production, 135, 1045-1053.
28-Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., and Rao, S. Subba (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107-124.
29-Li, S., Rao, S. Subba, Ragu-Nathan, T. S., and Ragu-Nathan, B. (2005), Development and validation of ameasurement instrument for studying supply chain management practices. Journal of Operations Management, 23(6), 618-641.
30-Majeed, S. (2011). The impact of competitive advantage on organizational performance. European Journal of Business and Management, 3(4),  191-196.
31-Mbuthia, M. G & Rotich, G. (2014). Effects of supply chain management practices on competitive advantage in retail chain stores in Kenya, A case study of Nakumatt Holding Limited. European Journal of Business Management, 2 (1), 336-349.
32-Mentzer JT, Min S, Zacharia ZG. (2000). The nature of inter-firm partnering in supply chain management. Journal of Retailing, 76(4), 549–68.
33-Mohammed, M. (2014). Supply chain management practices and firm performance in case of Awash Tannery Plc. Thesis, Addis Ababa University.
34-Murray, J.Y., Gao, G.Y., Kotabe, M., (2011). Market orientation and performance of export ventures: the process through marketing capabilities and competitive advantages. J. Acad. Mark. Sci. 39 (2), 252-269.
35-Parto, A., Sofian, S., Saat, M., M. (2016). The impact of enterprise resource planning systems on financial performance in developing county. International Review of Management and Business Research, 5(1), 176-187.
36-Porter, M. E. (1980). Competitive strategy: techniques for analyzing industries and competitors. New York, the Free Press.
37-Porter, M. E. (1985). Competitive advantage. New York: Free Press.
38-Porter, M. E. (2008). The five competitive forces that shape strategy, Harvard Business Review, 86(1), 78–93.
39-Porter, M.E., (1985). Competitive advantage creating and sustaining superior performance. Free Press, New York.
40-Qayyum, M., N. Ali, M,.  & Shazad, K. (2013). The impact of supply chain management practices on the financial performance of the organization.international  journal of operation and Logistics management. 2(2), 22-40.
41-Shahin, A. (2011). An investigation on the influence of total quality management on financial performance the Case of Boutan Industrial Corporation. International Journal of Business and Social Science, 2, (15), 105-112.
42-Shafee, M., & tarmast, P. (2014). Impact of supply chain practices on competitive advantage and organizational performance (case study: Sapco company). Bibliographic Information: Quarterly Quantitative Researches in Management, 5(2), 108-128. (in persian).
43-Sheridan JH. (1998). The supply-chain paradox. Industry Week. 247(3), 20–9.
44-Somuyiwa, A., Mcilt, M. & Adebayo, T., I. (2012).Firm’s competitive through supply chain responsiveness and supply chain management practices in Nigeria. British journal of Arts and Social Sciences. 10(I), 1-11.
45-Stam, W., Arzlanian, S., Elfring, T. (2014). Social capital of entrepreneurs and smallfirm performance: a meta-analysis of contextual and methodological moderators. J. Bus. Ventur. 29, 152–173.
46-StanleyLL, Wisner JD. (2001). Service quality along the supply chain: implications for purchasing. Journal of Operations Management, 19(3), 287–306.
47-Thatte, A., A. (2007). Competitive  advantage of a firm through supply chain responsiveness and scm practices.the university of Toledo. copyrith by proquest information and learning company. 1-29.
48-Thatte, A., A. Subba s.Rao & T.S.Ragu-Nathan. (2013). impact of scm practices of a firm on supply chain responsiveness and competitive advantage of a firm. The Journal of Applied Business Research, 29(2), 1-32.
49-Verwaal, E. (2017). Global outsourcing, explorative innovation and firm financial performance: A knowledge-exchange based perspective. Journal of World Business, 52, 17–27.
50-Zehir, C., Altindag, E., Acar, A., Z. (2011). The effects of relationship orientation through innovation orientation on firm performance: an empirical study on Turkish family-owned firms. 7th International Strategic Management Conference, 24, 896–908.
Journal of Business Administration Researches
Volume 10, Issue 20
February 2019
Pages 1-26

Files

Share

How to cite

Statistics