Supply Chain Management, Competitive Advantage and Organizational Performance in the Nigerian Manufacturing Sector

Abstract

In this study, we examined the impact of supply chain management practices (SCMP): strategic supplier partnership, customer relationship, level of information shared, and information quality on competitive advantage and organizational performance in the Nigerian manufacturing sector. In so doing, this study was set out to find out if these practices generate conditions that promote higher or lesser competitive advantage and organizational performance. The survey research design was adopted because the characteristics of the respondents were fully captured in other to make important decisions. A total number of 122 were found usable out of 146 copies of questionnaire circulated. The structural equation modelling (SEM) was the estimation technique employed to measure the relationships among the various variables/constructs using AMOS 22.0. It was found out that the four predictors (strategic supplier partnership, customer relationship, level of information shared, information quality) of SCMP had significant impact on organizational performance. The study also revealed that of the four independent variables, three (strategic supplier partnership, customer relationship, and level of information shared) had significant impact on competitive advantage, while information quality had no significant impact on competitive advantage. In response to our research questions, we concluded that the four constructs or predictors generate conditions that promote higher competitive advantage and organizational performance in the Nigerian manufacturing sector. The study recommended that manufacturing organizations should share quality, timely and accurate information to ensure their product offerings can be altered to meet customers while offering competitive prices. The study further recommended that organizations should assist its suppliers to improve product quality; regularly relate with clients to set dependability, receptiveness, and other standards; notify trading partners early when changing needs arises; and have fast product development.

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