The impact of cost leadership strategy and differentiation strategy on supply chain management efficiency

Abstract

The present study aimed to investigate the impact of two of the most commonly used strategies (i.e., cost leadership strategy and differentiation strategy) on the supply chain management efficiency (SCME) of companies listed in Tehran Stock Exchange (TSE). The data about 215 companies were analyzed during 2014–2021. The sale per inventory ratio was used to calculate SCME. The study focused on cost leadership strategy and differentiation strategy. The results showed that cost leadership strategy and differentiation strategy have a significant and positive effect on SCME. Hypothesis testing based on the robustness checks confirmed these findings. In spite of the growing interest in supply chain management, there is little research on emerging economies compared to developed economies. There is also a significant gap of research on how business strategy could influence the performance of supply chains. The present findings will not only help company managers in developing countries, but due to the lack of similar research, they are of great help to managers in developed countries and the global community.