Linking supply chain performance with organizational strategic performance – a review and research agenda

Abstract

PurposeThis article aims to comprehensively review the measurement and management of supply chain performance (SCP) and strategic performance (SP). It strives to identify integrable features regarding frameworks, measurement approaches, practices and emerging research issues in these areas to integrate SCP and SP for measuring and managing performance. It intends to develop a dynamic-integrated-performance-system by incorporating integrable aspects of SCP and SP to link these domains for organizational performance improvement.Design/methodology/approachUsing systematic-literature-review, this study analyzes 154 articles published in selected peer-reviewed international journals from 2000 to 2023 regarding SCP and SP. It assesses existing knowledge regarding research-design followed, challenging areas and imperatives in these critical business domains to investigate the prior conceptual, empirical, case study-based and literature-review-based articles.FindingsThe study identifies integrable features regarding key theoretical and measurement frameworks, critical objectives, significant measures, effective practices for measuring and managing SCP and SP and emerging research issues common to these areas. The findings help develop a dynamic-integrated-performance-system that uses the theoretical lenses of resource-based-view/dynamic-capability-theory and adopts a comprehensive framework like DBSC (system-dynamic-model with BSC perspectives). It incorporates identified integrable measures and best practices to monitor, measure, manage and improve organizational performance for sustainable competitive advantage. The article reveals that earlier studies have overlooked analyzing SCP and SP integration aspects.Research limitations/implicationsFrom the theoretical viewpoint, the present SLR is unique in three ways: first, in investigating both the measurement and management of SCP and SP holistically; second, in identifying integrative features of these two; and third, in proposing a DIPS to link SCP and SP for performance improvement. The study reveals that existing literature has focused on measuring and managing SCP and SP in isolation without attempting a comprehensive and unified approach to integrate the respective domains. The present SLR adopts a holistic approach to link SCP and SP from SCM and strategic-management perspectives. The study proposes a dynamic-integrated-performance-system to measure, manage and improve performance in a unified method.Practical implicationsThis study provides SC and strategy practitioners with an understanding of strategy-performance pathways for achieving strategic objectives and executing risk mitigation initiatives to counter disruptions. It enables SC managers to comprehend SC practices and SCP leading to dynamic SC capabilities development. Operationalizing the proposed DIPS will help firms link SCP and SP, align operational SC practices with strategic sustainability and circularity objectives and meet sustainable development goals while benefiting social and environmental stakeholders.Originality/valueAssessing relationships and identifying a unified approach integrating SCP with SP have not been addressed earlier. This study's uniqueness is finding integrable features of SCP and SP and constructing a dynamic-integrated-performance-system to link these domains for achieving strategic competitiveness.

Organizational focus

“…Tripathi and Roy (2023) have investigated the impact that supply chain performance management as well as supply chain strategic planning and oversight have on organizational growth, performance, and competitive advantage. They have outlined that firms should focus on the following areas in order to enhance overall firm performance and sustainable achievement of competitive advantage: Managing profitability – supply chains are significant source of waste and inefficiency, the associated costs of which can undermine the aim of maximizing profitability.…”

“…A crux of all these areas is the heavy dependance on supply chains and supply chain performance. As such, Tripathi and Roy (2023) highlight supply chain management and supply chain strategic oversight as focal points for all firms seeking to boost competitive advantage through supply chain improvements. There is a clear connection between supply chain performance and overall organizational strategic performance, demonstrating that more so than ever, an organization is dependent on the efficient functioning of all elements of the business, whether they are in-house or third party elements.…”

Relations between supply chain performance and circular economy implementation: A fuzzy cognitive map‐based analysis for sustainable development

“…Undoubtedly, there is a growing need for effective methods of assessing performance, including supply chain performance, that can assist organizations in attaining their business objectives by overseeing the implementation of new strategies (Tripathi & Roy, 2023;Zhong et al, 2023). As the market becomes more complex, there is a requirement for more robust tools to be introduced for gauging and evaluating performance (Ramezankhani et al, 2018).…”

“…Consequently, the presentation of models and approaches to support supply chain performance decision making becomes pivotal considering the inherent complexities to global supply chains (Zhong et al, 2023;Tripathi & Roy, 2023).…”