Impact of supply chain performance on organizational performance mediated by customer satisfaction: a study of dairy industry

Abstract

PurposeThe aim of this study is to empirically test the relationship between supply chain performance and organizational performance mediated by customer satisfaction.Design/methodology/approachRespondents of this study include all the supply chain stakeholders, managers working in the dairy industry, bulk milk chillers/coolers (BMCs), farmer producers, wholesalers, transporters, retailers and consumers. The final sample has 67 firms and their forward and backward linkages, taking the total sample size to 1,139. Mediation analysis was performed using SPSS AMOS v26 to analyze the impact of supply chain performance on organizational performance mediated by customer satisfaction.FindingsThe findings of this study reveal that supply chain performance positively impacts organizational performance, and customer satisfaction partially mediates the relationship between them.Research limitations/implicationsThis study provides an opportunity for future researchers to test this model in different locations and different industries, incorporating other mediating variables, such as risk, coordination, supply chain orientation etc., as antecedents and operational, economic and marketing performance as consequences.Practical implicationsThe study suggests that enhanced organizational performance requires supply chain management to be treated as a strategic function. Managers working at the processing/manufacturing level must focus on improving supply chain performance indicators through collaboration with supply chain stakeholders.Originality/valueThe present study adds to the existing literature by adopting a new supply chain performance measurement approach. The current literature has focused primarily on supply chain practices to study their impact on customer satisfaction and organizational performance. In contrast, the present study demonstrates how improvement in supply chain performance can enhance organizational performance through customer satisfaction.

How do food supply chain performance measures contribute to sustainable corporate performance during disruptions from the COVID-19 pandemic emergency?

“…In the field of SC management literature, this study supports the previous findings of Maaz and Ahmad (2022), Lee et al . (2022), Fu et al .…”

“…In addition, the mechanism of influence in this linkage is explained by stakeholder theory as resource and capacity efforts to improve FSCS to disruption to address the concerns and interests of stakeholders by ensuring supply in terms of quantity and quality, aiming to improve business performance in a sustainable way. Previous studies found an indirect relationship between SC performance and corporate performance via customer satisfaction (Maaz and Ahmad, 2022).…”

“…(2019) reviews and discusses frameworks of performance measures for SC resilience to disruptions from different sectors (food, production in general, transports, marine, electronics and textile) in regions of the world such as the USA, Germany, France, UK, Portugal, Ireland, Australia, the Netherlands, UAE, India, China, Singapore and Hong Kong. Other researches are mainly on the link between SC management and firm performance (Maaz and Ahmad, 2022; Lee et al. , 2022; Fu et al.…”

Increasing the organizational performance of online sellers: the powerful back-end management systems

“…ICT has affected agility by intensifying transitional activities (Baloch et al, 2022;Maaz and Ahmad, 2022), providing transitional intelligence and substantive decision-making processes between sellers and buyers and enabling online sellers to distribute their products via virtual collaboration (Mitchell, 2021;Tang and Zhang, 2022). It heightens agility and improves online shopping mall operations (Martinez-Caro et al, 2020); promotes agility for online sellers by seeking to improve buyer transition decision-making, accelerating communication between buyer and seller relationships by delivering electronic transition process integration and providing digital transition option settings for sellers and buyers (Kessari et al, 2020).…”

“…ICT has affected agility by intensifying transitional activities (Baloch et al. , 2022; Maaz and Ahmad, 2022), providing transitional intelligence and substantive decision-making processes between sellers and buyers and enabling online sellers to distribute their products via virtual collaboration (Mitchell, 2021; Tang and Zhang, 2022). It heightens agility and improves online shopping mall operations (Martinez-Caro et al.…”