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Supply chain strategies as drivers of financial performance in liquefied natural gas networks

Nasiru Zubairu (Faculty of Transport and Logistics, Muscat University, Muscat, Oman and Plymouth Business School, University of Plymouth, Plymouth, UK)
John Dinwoodie (Plymouth Business School, University of Plymouth, Plymouth, UK)
Kannan Govindan (China Institute of FTZ Supply Chain, Shanghai Maritime University, Shanghai, China; Yonsei Frontier Lab, Yonsei Graduate School of Human Environmental Sciences, Seoul, Republic of Korea and Center for Sustainable Supply Chain Engineering, Department of Technology and Innovation, Danish Institute for Advanced Study, University of Southern Denmark, Sønderborg, Denmark)
Lise Hunter (Plymouth Business School, University of Plymouth, Plymouth, UK)
Saeyeon Roh (Plymouth Business School, University of Plymouth, Plymouth, UK)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 8 February 2021

Issue publication date: 13 July 2021

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Abstract

Purpose

The purpose of this study is to identify and evaluate supply chain strategies (SCSs) that drive financial performance to guide practitioners, especially in liquefied natural gas (LNG) networks, to review and adopt SCSs that drive competitiveness and value creation for investors.

Design/methodology/approach

Analytical hierarchy process (AHP) was deployed to prioritise SCSs according to their relative impact on financial performance in LNG networks. Interviews with experts were analysed using template analysis to establish latent drivers of financial performance specific to LNG networks.

Findings

Results support the significant role of SCSs in improving financial performance. Although findings prioritised collaborative strategy as the most important driver of financial performance in LNG networks, to fully optimise financial outcomes, all the SCSs should be implemented across LNG networks as no single strategy in isolation is a standalone driver of financial performance.

Practical implications

The AHP model provides a novel ranking for SCSs and measures to guide decision-makers. LNG practitioners may exploit the results to make informed decisions.

Originality/value

The study extends previous literature by proposing a framework and a new LNG empirical model that facilitates understanding of how SCSs contribute positively to financial performance and support practitioners in making strategic supply chain decisions.

Keywords

Acknowledgements

The authors would like to acknowledge the financial support of the Petroleum Technology Development Fund (PTDF) [grant number PTDF/ED/PHD/ZN/978/16].

Citation

Zubairu, N., Dinwoodie, J., Govindan, K., Hunter, L. and Roh, S. (2021), "Supply chain strategies as drivers of financial performance in liquefied natural gas networks", Supply Chain Management, Vol. 26 No. 5, pp. 579-591. https://doi.org/10.1108/SCM-08-2020-0389

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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