Supply chain management and organizational performance: the resonant influence

Abstract

Purpose A single supply chain management (SCM) practice will have a certain impact on organizational performance (OP). However, since it is placed in a system that many other practices are conducted simultaneously, the practice itself will interact with other ones (i.e. affect/be affected). As a consequence, the efficiency of the affected practice is increased and it is expected to maximize the impact of SCM practices on OP. This mechanism is named the “resonant” influence that is a new approach in the SCM literature. The purpose of this paper is to test the above mechanism toward an insight into the relationship between SCM and OP. Design/methodology/approach Two models were compared: the competitive models only exist in direct effects; and the other contains relationships between practices that are able to show the mechanism of the resonant influence, i.e. the hypothetical model. A data set gained from Vietnamese garment enterprises was used to validate the mechanism of the resonant influence. Findings Empirical evidence from Vietnamese garment sector showed that the competitive models could explain 42.8, 26.3 and 34 percent variance of operational performance, customer satisfaction and financial performance, respectively. In the meantime, the hypothetical model containing the resonant influence is capable to explain 69.5, 33.1 and 57.3 percent. For the impact of each SCM practice on OP, all relationships in the hypothetical model are also greater than those in competitive ones. These results supported the mechanism of the resonant influence. Research limitations/implications This research provides an insight into the relationship between SCM practices and OP. By the resonant influence, the effectiveness of each affected SCM practice itself is magnified and OP is also increased remarkably. Practical implications Understanding the resonant influence, companies can apply this mechanism to enhance effectiveness of SCM practices at the lowest cost. To this end, the SCM practices should be implemented simultaneously as an integrated system rather than independent ones and the structural model proposed in this study is able to be used as “a guide map” for applying this mechanism. Originality/value This is one of pioneer empirical studies in the SCM literature that proposed and validated the concept of “resonant influence.”

Supply Chain Management: A Study on Competitive Advantage Relationship and Operational Performance during Pandemic Covid 19 in Indonesia

“…The findings of this study support previous research by Althaqafi, (2020) that there is a strong relationship between SCM and operational performance and it impacts each other widely. Furthermore, this finding is in line with the research of (Phan et al, 2019;Duong et al, 2019) which revealed that maintaining supply chain management in the company has a good impact on operational performance. The findings of Vencataya et al, (2016) reinforce the findings of this study that effective SCM practices can have a good effect on operational performance in the company.…”

How to integrate organizational instruments? The mediation of HRM practices effect on organizational performance by SCM practices

“…see Quang et al, 2016;Truong et al, 2017). But, these studies viewed SCM practices as independent variables -thus focusing mainly on their direct effects (Duong et al, 2019). The divergence perspectives on SCM practices and their role in performance outcome motivate examining the potential role of SCM practices (a set of five SCM practices that are logically related between them) on organizational performance to better understand their value and relevance to the organization operating amid increased uncertainty and volatility in a dynamic and complex environment (Islami, 2021).…”

Influence of data-driven supply chain quality management on organizational performance: evidences from retail industry

“…Quality management is one of the most well-accepted operations strategies to attain competitive advantages in the operations of companies along with retail sector (Agrawal, 2020; Zhang et al , 2019; García-Bernal and Ramírez-Alesón, 2015; Baird et al , 2011; Kaynak and Hartley, 2008), whereas the internal supply chains are limited to increase the operational efficiency of the firm (Choi et al , 2018; Walker et al , 2008). Literature highlights the high-level inter-relationship between quality and supply chain performance (Sharma and Modgil, 2019; Duong et al , 2019; Reddy et al , 2019; Marinagi et al , 2015). The global business trends influence SC-QM practices and firm performance (Kuei et al , 2001), therefore firms are now focusing on internal process improvement to circumscribe the globalization of their quality strategy (Lin et al , 2013; Wiengarten et al , 2013; Li et al , 2011; Soltani et al , 2011).…”