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The effect of supply chain management practices on supply chain and manufacturing firms’ performance

Moh’d Anwer Radwan Al-Shboul (Department of Logistic Sciences, School of Management and Logistic Sciences, German-Jordanian University, Amman, Jordan)
Kevin D. Barber (Bradford University School of Management, University of Bradford, Bradford, UK)
Jose Arturo Garza-Reyes (Derby Business School, Faculty of Business, Computing and Law, The University of Derby, Derby, UK) (Centre for Supply Chain Improvement, The University of Derby, Derby, UK)
Vikas Kumar (Bristol Business School, University of the West of England, Bristol, UK)
M. Reza Abdi (Bradford University School of Management, University of Bradford, Bradford, UK)

Journal of Manufacturing Technology Management

ISSN: 1741-038X

Publication date: 5 June 2017

Abstract

Purpose

The purpose of this paper is to theorise and develop seven dimensions (strategic supplier partnership, level of information sharing, quality of information sharing, customer service management, internal lean practices, postponement and total quality management) into a supply chain management (SCM) practices (SCMPs) construct and studies its causal relationship with the conceptualised constructs of supply chain performance (SCP) and manufacturing firms’ performance (MFP). The study also explores the causal relationship between SCP and MFP.

Design/methodology/approach

Data were collected through a survey questionnaire responded by 249 Jordanian manufacturing firms. The relationships proposed in the developed theoretical framework were represented through three hypotheses: H1 – there is a significant relationship between SCMPs and SCP; H2 – there is a significant relationship between SCMPs and MFP; and H3 – there is a significant relationship between SCP and MFP. Linear regression, ANOVA and Pearson correlation were used to test the hypotheses. The results were further validated using structural equation modelling.

Findings

The results indicate that SCMPs have a positive effect on SCP (H1), which in turn also positively affect MFP (H3). Despite this intermediary positive effect of SCMP on MFP through SCP, the study also suggests that SCMPs have a direct and positive effect on MFP (H2).

Practical implications

This study provides hard evidence indicating that higher levels of SCMPs can lead to enhanced supply chain and firms’ performance. It also provides SC managers of manufacturing firms with a multi-dimensional operational measure of the construct of SCMPs for assessing the comprehensiveness of the SCMPs of their firms.

Originality/value

This study is among the very first SCM researches conducted on the Jordanian manufacturing sector, particularly, in relation to the practices that manufacturing firms in this country need to adopt to make their supply chains a solid competitive vehicle for their development. The results have broader implications for all manufacturing companies, particularly in developing economies where the growth of manufacturing and the development of integrated supply chains are key stages in economic development.

Keywords

Citation

Al-Shboul, M.A.R., Barber, K.D., Garza-Reyes, J.A., Kumar, V. and Abdi, M.R. (2017), "The effect of supply chain management practices on supply chain and manufacturing firms’ performance", Journal of Manufacturing Technology Management, Vol. 28 No. 5, pp. 577-609. https://doi.org/10.1108/JMTM-11-2016-0154

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited