Supply Chain Management Components,Competitiveness and Organisational Performance: Causal Study of Manufacturing Firms

Abstract

Supply Chain Management (SCM) is a complex subject, which is an important determinant of success or failure of any manufacturing enterprise. It is absolutely essential for executives of manufacturing enterprises to be thoroughly aware about all the essential components of supply chain management and understand the impact that it might exert on the overall efficiency of the organisation. This knowledge will enable them to focus on those variables which add value to organisations and considering the significance of SCM, especially in Indian context, the researcher has made a sincere attempt to find a solution to the research question of ‘What is the impact of important components of SCM on the performance of the supply chain per se and also on the organisational performance in Indian context?’ Based on the review of literature relating to supply chain management components, competitiveness and organisational performance of manufacturing enterprises, a conceptual model was framed and the resulting hypotheses were empirically tested. Data was collected from the executives of these manufacturing enterprises by administering a well structured questionnaire, using personal interview method and tested the proposed research hypotheses. The findings from the structural equation model results support all the 10 formulated hypotheses that there is a significant positive relationship with the supply chain management and organisational performance.