Effective factors of implementing efficient supply chain strategy on supply chain performance
Abstract
Nowadays, the importance of supply chain management and its effect on business performance is undeniable. Boosting competitive environment makes every single firm adopt an assignable supply chain strategy. This study is one of the rare practical researches that recognize key factors related to the application of a successful and efficient supply chain strategy. So far, many researchers have conducted studies on responsive supply chain strategy; but in this study, it is sought to focus on efficient supply chain strategies due to increasing need for organizations to enhance efficiency and reduce costs. Structural equation modelling using SmartPLS software is used to examine the research assumptions. Analysis of the structural model showed that there is a positive relationship between implementation of efficient supply chain strategy with supply chain performance; therefore the main research hypothesis is confirmed. Research revealed internal integration, top management support and information technology as efficient supply chain characteristics that have positive effects on supply chain performance. To reduce costs of implementation of efficient supply chain strategy, it is necessary to invest in factors that influence supply chain performance positively.
Keyword : supply chain, efficiency, performance, strategy, information technology, structural equation modelling
How to Cite
Daneshvar, M., Razavi Hajiagha, S. H., Tupėnaitė, L., & Khoshkheslat, F. (2020). Effective factors of implementing efficient supply chain strategy on supply chain performance. Technological and Economic Development of Economy, 26(4), 947-969. https://doi.org/10.3846/tede.2020.12827
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Colin, M., Galindo, R., & Hernandez, O. (2015). Information and communication technology as a key strategy for efficient supply chain management in manufacturing SMEs. Procedia Computer Science, 55, 833–842. https://doi.org/10.1016/j.procs.2015.07.152
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Do Valle, P. O., & Assaker, G. (2015). Using partial least squares structural equation modeling in tourism research: A review of past research and recommendations for future applications. Journal of Travel Research, 55(6), 695–708. https://doi.org/10.1177/0047287515569779
Dubey, R., Gunasekaran, A., Childe, S. J., Papadopoulos, T., & Helo, P. (2019). Supplier relationship management for circular economy: Influence of external pressures and top management commitment. Management Decision, 57(4), 767–790. https://doi.org/10.1108/MD-04-2018-0396
Falk, R. F., & Miller, N. B. (1992). A primer for soft modeling. University of Akron Press.
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Fisher, M. L. (1997). What is the right supply chain for your product?. Harvard Business School.
Fornell, C., & Larker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
Geisser, S. (1975). The predictive sample reuse method with applications. Journal of American Statistical Association, 70, 320–328. https://doi.org/10.1080/01621459.1975.10479865
Goffin, K., Lemke, F., & Szwejczewski, M. (2006). An exploratory study of ‘close’ supplier-manufacturer relationships. Journal of Operations Management, 24(2), 189–209. https://doi.org/10.1016/j.jom.2005.05.003
Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012). The use of partial least squares structural equation modeling in strategic management research: A review of past practices and recommendations for future applications. Long Range Planning, 45(5–6), 320–340. https://doi.org/10.1016/j.lrp.2012.09.008
Han, J. H., Wang, Y., & Naim, M. (2017). Reconceptualization of information technology flexibility for supply chain management: An empirical study. International Journal of Production Economics, 187, 196–215. https://doi.org/10.1016/j.ijpe.2017.02.018
Huo, B. (2012). The impact of supply chain integration on company performance: an organizational capability perspective. Supply Chain Management: An International Journal, 17(6), 596–610. https://doi.org/10.1108/13598541211269210
Huo, B., Zhang, C., & Zhao, X. (2015). The effect of IT and relationship commitment on supply chain coordination: A contingency and configuration approach. Information & Management, 52(6), 728– 740. https://doi.org/10.1016/j.im.2015.06.007
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