The relationship between supply chain management activities and firm performance with the mediating and moderating effect

Waiyawuththanapoom, P.; Aunyawong, W.; Poolsawad, K.; Thumawongchai, V.; Boonrattanakittibhumi, C.; Jermsittiparsert, K.

Abstract: The performance plays a key role in the long-term survival of the organizations. If the performance of the organization increases, then the organization may lead in the global perspective. There are various factors that could lead to the performance. Among those, the supply chain management practices (SCMP) play an important role to increase the performance. The SCMP factors may also enhance the competitive advantage of the organizations. Furthermore, the manager support may provide insight to manage the SCM activities which could aid enhance firm performance (FP). Therefore, the purpose of this study is to investigate the relationship between the SCMP and FP with the moderating and mediating effect in the chemical industry of Thailand. The data was collected from the supply chain managers by using a simple random technique. The SEM direct effect shows that SCMA had a significant and positive connection with firm performance FP. In addition, SCMP does not seem to have any significant relationship with the competitive advantage. While competitive advantage has a positive and significant effect on FP. On the other hand, the indirect effect shows that SCMP and FP relationship were partially mediated from the competitive advantage. Moreover, the manager's support did not significantly moderate the SCMP and FP relationship. The current study added literature in the extant literature in the form of empirical findings which could help the researchers explore their studies in future. The study may also provide help to owners as well as to shareholders to know about the importance of the SCMP, competitive advantage and managers' support to increase their FP.

How to cite this paper

        APA: Waiyawuththanapoom, P., Aunyawong, W., Poolsawad, K., Thumawongchai, V., Boonrattanakittibhumi, C & Jermsittiparsert, K. (2023). The relationship between supply chain management activities and firm performance with the mediating and moderating effect. Uncertain Supply Chain Management, 11(1), 375-382.
    

        Chicago/Turabian: Waiyawuththanapoom, P., Aunyawong, W., Poolsawad, K., Thumawongchai, V., Boonrattanakittibhumi, C & Jermsittiparsert, K. 2023. "The relationship between supply chain management activities and firm performance with the mediating and moderating effect." Uncertain Supply Chain Management 11, no. 1 (2023): 375-382.
    

        AMA: Waiyawuththanapoom, P., Aunyawong, W., Poolsawad, K., Thumawongchai, V., Boonrattanakittibhumi, C & Jermsittiparsert, K. The relationship between supply chain management activities and firm performance with the mediating and moderating effect. Uncertain Supply Chain Management. 2023;11(1):375-382.
    

References

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological bulletin, 103(3), 411.
Bukh, P. N., Johansen, M. R., & Mouritsen, J. (2002). Multiple integrated performance management systems: IC and BSC in a software company. Singapore Management Review, 24(3), 21-36.
Cachon, G. P., & Fisher, M. (2000). Supply chain inventory management and the value of shared information. Management science, 46(8), 1032-1048.
Chau, P. Y. (1997). Reexamining a model for evaluating information center success using a structural equation modeling approach. Decision Sciences, 28(2), 309-334.
Chotiyaputta, V., & Yoon, Y. (2018). Women on the Board and Firm Performance of Thai Publicly Listed Companies in the SET100, 2008-2017. PSAKU International Journal of Interdisciplinary Research, 7(1), 149-160.
Demeter, K., Boer, H., Peng, D. X., Schroeder, R. G., & Shah, R. (2011). Competitive priorities, plant improvement and innovation capabilities, and operational performance. International Journal of Operations & Production Management, 31(5).
Flöthmann, C., Hoberg, K., & Wieland, A. (2018). Competency requirements of supply chain planners & analysts and personal preferences of hiring managers. Supply Chain Management: An International Journal, 23(6), 480-499.
Hair, J., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106-121.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM): Sage publications.
Hall, J. (2006). Environmental supply chain innovation Greening the supply chain (pp. 233-249): Springer.
Handfield, R., & Nichols Jr, E. (1999). Introduction to. Supply Chain Management, Prentice Hall, Englewood Cliffs, NJ.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing New challenges to international marketing (pp. 277-319): Emerald Group Publishing Limited.
Hsu, C.-C., Tan, K.-C., Kannan, V. R., & Keong Leong, G. (2009). Supply chain management practices as a mediator of the relationship between operations capability and firm performance. International Journal of Production Research, 47(3), 835-855.
Jermsittiparsert, K., Siriattakul, P., & Sangperm, N. (2019). Predictors of Environmental Performance: Mediating Role of Green Supply Chain Management Practices. International Journal of Supply Chain Management, 8(3), 877-888.
Jharkharia, S., & Shankar, R. (2006). Supply chain management: some sectoral dissimilarities in the Indian manufacturing industry. Supply Chain Management: An International Journal, 11(4).
Jie, F., Parton, K. A., & Cox, R. J. (2013). Linking supply chain practices to competitive advantage. British Food Journal, 115(7).
Kamukama, N., Ahiauzu, A., & Ntayi, J. M. (2011). Competitive advantage: mediator of intellectual capital and performance. Journal of Intellectual Capital, 12(1).
Karimi, E., & Rafiee, M. (2014). Analyzing the impact of supply chain management practices on organizational performance through competitive priorities (case study: Iran pumps company). International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 1-15.
Kinyuira, D. (2014). Effects of Porter’s Generic competitive strategies on the performance of Savings and Credit Cooperatives (Saccos) in Murang’a County, Kenya. Journal of Business and Management, 16(6), 93-105.
Kroes, J. R., & Ghosh, S. (2010). Outsourcing congruence with competitive priorities: Impact on supply chain and firm performance. Journal of operations management, 28(2), 124-143.
Kronmeyer Filho, O., Fachinello, T., & Kliemann Neto, F. (2004). O mapeamento da cadeia eletrônica no RS: um estudo inicial. ENCONTRO NACIONAL DE ENGENHARIA DE PRODUÇÃO (ENEGEP), XXIV, Florianópolis, 3648-3655.
Lambert, D. M., & Enz, M. G. (2017). Issues in supply chain management: Progress and potential. Industrial Marketing Management, 62, 1-16.
Lee, H. L., & Whang, S. (2000). Information sharing in a supply chain. International Journal of Manufacturing Technology and Management, 1(1), 79-93.
Li, S., Ragu-Nathan, B., Ragu-Nathan, T., & Rao, S. S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107-124.
Lippmann, S. (1999). Supply chain environmental management: elements for success. Corporate Environmental Strategy, 6(2), 175-182.
Maleewat, N., & Banjongprasert, J. (2022). The Impact of Small Size Firm and Differentiation Strategy in the Niche Strategic Implementation on the Organizational Performance. Asian Administration and Management Review, 5(1), 17-28.
Mangan, J., & Christopher, M. (2005). Management development and the supply chain manager of the future. The international journal of logistics management, 16(2), 178-191.
Mason-Jones, R., & Towill, D. R. (1999). Using the information decoupling point to improve supply chain performance. The International Journal of Logistics Management, 10(2), 13-26.
Power, D. J. (2002). Decision support systems: concepts and resources for managers: Greenwood Publishing Group.
Rajeev, A., Pati, R. K., Padhi, S. S., & Govindan, K. (2017). Evolution of sustainability in supply chain management: A literature review. Journal of Cleaner Production, 162, 299-314.
Robb, D. J., Xie, B., & Arthanari, T. (2008). Supply chain and operations practice and performance in Chinese furniture manufacturing. International Journal of Production Economics, 112(2), 683-699.
Rua, O., França, A., & Ortiz, R. F. (2018). Key drivers of SMEs export performance: the mediating effect of competitive advantage. Journal of Knowledge Management, 22(2), 257-279.
Salles, J., Vieira, M., Vaz, R., & Vanalle, R. (2010). Manufacturing strategies in the auto industry in Brazil and Spain. Paper presented at the 2010 IEEE International Conference on Industrial Engineering and Engineering Management.
Shafei, R., & Zohdi, M. (2014). Relational capabilities in market orientation to improvement of performance outcomes in SMEs. International Journal of Business Performance Management, 15(4), 295-315.
Skjoett‐Larsen, T. (1999). Supply chain management: a new challenge for researchers and managers in logistics. The international journal of logistics management, 10(2), 41-54.
Slater, S. F., & Narver, J. C. (2000). The positive effect of a market orientation on business profitability: A balanced replication. Journal of business research, 48(1), 69-73.
Somjai, S. & Jermsittiparsert, K. (2019). Role of Pressures and Green Supply Chain Management Practices in Enhancing the Operational Efficiency of Firms: Evidence from Thailand. International Journal of Supply Chain Management, 8(4), 437-445.
Srimai, S., Wright, C. S., & Radford, J. (2013). A speculation of the presence of overlap and niches in organizational performance management systems. International Journal of Productivity and Performance Management, 62(4), 364-386.
Stock, J. R., Boyer, S. L., & Harmon, T. (2010). Research opportunities in supply chain management. Journal of the Academy of Marketing Science, 38(1), 32-41.
Sucky, E. (2009). The bullwhip effect in supply chains—An overestimated problem? International Journal of Production Economics, 118(1), 311-322.
Sukati, I., Hamid, A. B., Baharun, R., & Yusoff, R. M. (2012). The study of supply chain management strategy and practices on supply chain performance. Procedia-Social and Behavioral Sciences, 40, 225-233.
Tan, K. C. (2002). Supply chain management: practices, concerns, and performance issues. Journal of Supply Chain Management, 38(4), 42-53.
Tracey, M., Vonderembse, M. A., & Lim, J.-S. (1999). Manufacturing technology and strategy formulation: keys to enhancing competitiveness and improving performance. Journal of operations management, 17(4), 411-428.
Tyteca, D., Carlens, J., Berkhout, F., Hertin, J., Wehrmeyer, W., & Wagner, M. (2002). Corporate environmental performance evaluation: evidence from the MEPI project. Business Strategy and the Environment, 11(1), 1-13.
Vivares-Vergara, J. A., Sarache-Castro, W. A., & Naranjo-Valencia, J. C. (2016). Impact of human resource management on performance in competitive priorities. International Journal of Operations & Production Management, 36(2), 114-134.
Wagner, S. M., Grosse-Ruyken, P. T., & Erhun, F. (2012). The link between supply chain fit and financial performance of the firm. Journal of Operations Management, 30(4), 340-353.
Yammarino, F. J., & Atwater, L. E. (1997). Do managers see themselves as other see them? Implications of self-other rating agreement for human resources management. Organizational Dynamics, 25(4), 35-44.
Zhao, X., & Lee, T.-s. (2009). Developments and emerging research opportunities in operations strategy and supply chain management. International Journal of Production Economics, 120(1), 1-4.

⭐ Highly Cited Articles

Journals

USCM Volumes

🔑 Keywords

✍️ Authors

🌍 Countries