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Supply chain management practices and firms’ operational performance

Huy Quang Truong (Department of Systems and Production, University of Minho, Braga, Portugal) (Department of Production and Operations Management, Ho Chi Minh City University of Technology, Ho Chi Minh City, Vietnam)
Maria Sameiro (Department of Systems and Production, University of Minho, Braga, Portugal)
Ana Cristina Fernandes (Department of Systems and Production, University of Minho, Braga, Portugal)
Paulo Sampaio (Department of Systems and Production, University of Minho, Braga, Portugal)
Binh An Thi Duong (Ho Chi Minh City University of Technology, Ho Chi Minh City, Vietnam)
Hiep Hoang Duong (Nghi Son Cement Corporation, Ho Chi Minh City, Vietnam)
Estela Vilhenac (Department of Sciences, Polytechnic Institute of Cávado and Ave (IPCA), Barcelos, Portugal) (Institute of Public Health, University of Porto, Porto, Portugal)

International Journal of Quality & Reliability Management

ISSN: 0265-671X

Article publication date: 6 February 2017

3379

Abstract

Purpose

The purpose of this paper is to provide an empirical evidence about the relationship between practices of supply chain management (SCM) and operational performance (OP).

Design/methodology/approach

Based on a comprehensive literature review, a set of SCM practices has been identified and selected to develop a conceptual model as well as to establish their relationship to companies’ OP. The measurement scales of the practices were developed in four steps: identification and development of initial instrument; personal interviews and Q-sort; large-scale data collection; and large-scale analysis in order to ensure unidimensionality, reliability and validity. Structural equation modeling was used to validate the model with the data were collected in Vietnamese garment enterprises.

Findings

The study consolidated relationships between the SCM practices and OP. According to the research results, these practices have a “resonant” influence on OP that can explain 52.6 percent variance of this output concept. In particular, customer focus and supplier management both direct and indirect impact on OP while top management support and process control/improvement only have indirect and direct influences on OP, respectively.

Research limitations/implications

There are some limitations that can guide academics to new lines of future research: to extend the scope of the survey to include different countries and new situations, so results can be generalized; to consider the impacts of the SCM practices on the entire supply chain performance; and to explore additional factors that can further explain OP, such as operational environment, capital, technology, human resource, etc.

Practical implications

The authors suggest that the SCM practices should be implemented as an integrated system rather than independent practices, in which they interact with each other and improve OP.

Originality/value

The empirical results of this study provide an evidence to consider the SCM practices as reliable predictors for OP. According to the research, these practices interact with each other and have both direct and indirect effects on OP. In other words, through the mutual interaction among the SCM practices, they have the “resonant” influence on improving OP. Moreover, the proposed research model analyzing the relationship among SCM practices and OP and its validation using the Vietnam garment industry provided valuable insights both from theoretical and practical perspectives.

Keywords

Acknowledgements

This project has been funded with support from the European Commission. This publication (communication) reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. This work was also financed with FEDER funds by Programa Operational Fatores de Competitividade (COMPETE) and national funds by Fundação para a Ciência e Tecnologia (FCT) through Project: FCOMP-01-0124-FEDER-022674.

Citation

Truong, H.Q., Sameiro, M., Fernandes, A.C., Sampaio, P., Duong, B.A.T., Duong, H.H. and Vilhenac, E. (2017), "Supply chain management practices and firms’ operational performance", International Journal of Quality & Reliability Management, Vol. 34 No. 2, pp. 176-193. https://doi.org/10.1108/IJQRM-05-2015-0072

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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