The Role of Effective Supply Chain Practices on Firm Performance: Mediating Role of Organizational Culture

Authors

  • DR. MUHAMMAD AZEEM AHMAD
  • DR. ARSHIA HASHMI

Keywords:

Supplier relationship, Customer relationships, Lean manufacturing, Supply chain practices, Organizational culture

Abstract

 The management of supply chain practices is the essential element for high organizational performance and captures the focus of regulators and recent studies. Thus, the current study examines the impact of supply chain practices such as supplier relationship, customer relationship, and lean manufacturing on the performance of manufacturing companies in Pakistan. This research also investigates the mediating role of organizational culture among the relationships of the supplier relationship, customer relationship, lean manufacturing, and performance of manufacturing companies in Pakistan. This study has followed the quantitative approach of data collection and used the questionnaires for this purpose and also used the smart-PLS for analysis purposes. The results exposed that supplier relationship, customer relationship, and lean manufacturing have a positive association with the performance of manufacturing companies. The findings also indicated that organizational culture positively mediates the relationships among the supplier relationship, customer relationship, lean manufacturing, and performance of manufacturing companies in Pakistan. This study will help the policymakers while formulating the policies related to the supply chain and organizational performance.

Downloads

Download data is not yet available.

References

Abas, M., Khattak, S. B., Habib, T., & Nadir, U. (2020). Assessment of critical risk and success factors in construction supply chain: a case of Pakistan. International Journal of Construction Management, 13, 1-9. doi: https://doi.org/10.1080/15623599.2020.1783597

Altay, N., Gunasekaran, A., Dubey, R., & Childe, S. J. (2018). Agility and resilience as antecedents of supply chain performance under moderating effects of organizational culture within the humanitarian setting: a dynamic capability view. Production planning & control, 29(14), 1158-1174. doi: https://doi.org/10.1080/09537287.2018.1542174

Amoako-Gyampah, K., Boakye, K. G., Adaku, E., & Famiyeh, S. (2019). Supplier relationship management and firm performance in developing economies: A moderated mediation analysis of flexibility capability and ownership structure. International Journal of Production Economics, 208, 160-170. doi: https://doi.org/10.1016/j.ijpe.2018.11.021

Bowers, M. R., Hall, J. R., & Srinivasan, M. M. (2017). Organizational culture and leadership style: The missing combination for selecting the right leader for effective crisis management. Business Horizons, 60(4), 551-563. doi: https://doi.org/10.1016/j.bushor.2017.04.001

Chae, S., Choi, T. Y., & Hur, D. (2017). Buyer power and supplier relationship commitment: A cognitive evaluation theory perspective. Journal of Supply Chain Management, 53(2), 39-60. doi: https://doi.org/10.1111/jscm.12138

Das, D. (2018). The impact of Sustainable Supply Chain Management practices on firm performance: Lessons from Indian organizations. Journal of cleaner production, 203, 179-196. doi: https://doi.org/10.1016/j.jclepro.2018.08.250

Dubey, R., Gunasekaran, A., Childe, S. J., Roubaud, D., Wamba, S. F., Giannakis, M., & Foropon, C. (2019). Big data analytics and organizational culture as complements to swift trust and collaborative performance in the humanitarian supply chain. International Journal of Production Economics, 210, 120-

doi: https://doi.org/10.1016/j.ijpe.2019.01.023

Dubey, R., Gunasekaran, A., Helo, P., Papadopoulos, T., Childe, S. J., & Sahay, B. (2017). Explaining the impact of reconfigurable manufacturing systems on environmental performance: The role of top management and organizational culture. Journal of cleaner production, 141, 56-66. doi: https://doi.org/10.1016/j.jclepro.2016.09.035

Gölgeci, I., & Kuivalainen, O. (2020). Does social capital matter for supply chain resilience? The role of absorptive capacity and marketing-supply chain management alignment. Industrial Marketing Management, 84, 63-74. doi: https://doi.org/10.1016/j.indmarman.2019.05.006

Gong, M., Gao, Y., Koh, L., Sutcliffe, C., & Cullen, J. (2019). The role of customer awareness in promoting firm sustainability and sustainable supply chain management. International Journal of Production Economics, 217, 88-96. doi: https://doi.org/10.1016/j.ijpe.2019.01.033

Hair Jr, J. F., Babin, B. J., & Krey, N. (2017). Covariance-based structural equation modeling in the Journal of Advertising: Review and recommendations. Journal of Advertising, 46(1), 163-177. doi: https://doi.org/10.1080/00913367.2017.1281777

Hong, J., Zhang, Y., & Ding, M. (2018). Sustainable supply chain management practices, supply chain dynamic capabilities, and enterprise performance. Journal of cleaner production, 172, 3508-3519. doi: https://doi.org/10.1016/j.jclepro.2017.06.093

Hu, J., Liu, Y.-L., Yuen, T. W. W., Lim, M. K., & Hu, J. (2019). Do green practices really attract customers? The sharing economy from the sustainable supply chain management perspective. Resources, Conservation and Recycling, 149, 177-187. doi: https://doi.org/10.1016/j.resconrec.2019.05.042

Ilyas, S., Hu, Z., & Wiwattanakornwong, K. (2020). Unleashing the role of top management and government support in green supply chain management and sustainable development goals. Environmental Science and Pollution Research, 27(8), 8210-8223. doi: https://doi.org/10.1007/s11356-019-07268-3

Kamble, S., Gunasekaran, A., & Dhone, N. C. (2020). Industry 4.0 and lean manufacturing practices for sustainable organisational performance in Indian manufacturing companies. International Journal of Production Research, 58(5), 1319-1337. doi: https://doi.org/10.1080/00207543.2019.1630772

Khan, S. A. R., & Qianli, D. (2017). Impact of green supply chain management practices on firms’ performance: an empirical study from the perspective of Pakistan. Environmental Science and Pollution Research, 24(20), 16829-16844. doi: https://doi.org/10.1007/s11356-017-9172-5

Lambert, D. M., & Enz, M. G. (2017). Issues in supply chain management: Progress and potential. Industrial Marketing Management, 62, 1-16. doi: https://doi.org/10.1016/j.indmarman.2016.12.002

Li, G., Li, L., Choi, T. M., & Sethi, S. P. (2020). Green supply chain management in Chinese firms: Innovative measures and the moderating role of quick response technology. Journal of Operations Management, 66(7-8), 958-988. doi: https://doi.org/10.1002/joom.1061

Mathivathanan, D., Govindan, K., & Haq, A. N. (2017). Exploring the impact of dynamic capabilities on sustainable supply chain firm's performance using Grey-Analytical Hierarchy Process. Journal of cleaner production, 147, 637-653. doi: https://doi.org/10.1016/j.jclepro.2017.01.018

Mohsin, M., Kamran, H. W., Nawaz, M. A., Hussain, M. S., & Dahri, A. S. (2021). Assessing the Impact of Transition from Non-renewable to Renewable Energy Consumption on Economic Growth-Environmental Nexus from Developing Asian Countries. Journal of Environmental Management, 284, 1-8.

Nawaz, M. A., Hussain, M. S., Kamran, H. W., Ehsanullah, S., Maheen, R., & Shair, F. (2020). Trilemma association of energy consumption, carbon emission, and economic growth of BRICS and OECD regions: quantile regression estimation. Environmental Science and Pollution Research, 1-15.

Nawaz, M. A., Seshadri, U., Kumar, P., Aqdas, R., Patwary, A. K., & Riaz, M. (2021). Nexus between green finance and climate change mitigation in N-11 and BRICS countries: empirical estimation through difference in differences (DID) approach. Environmental Science and Pollution Research, 28(6), 6504- 6519. doi: https://doi.org/10.1007/s11356-020-10920-y

Panagopoulos, N. G., Rapp, A. A., & Ogilvie, J. L. (2017). Salesperson solution involvement and sales performance: The contingent role of supplier firm and customer–supplier relationship characteristics. Journal of Marketing, 81(4), 144-164. doi: https://doi.org/10.1509%2Fjm.15.0342

Rehman, A. U., Usmani, Y. S., Umer, U., & Alkahtani, M. (2020). Lean approach to enhance manufacturing productivity: a case study of Saudi arabian factory. Arabian Journal for Science and Engineering, 45(3), 2263-2280. doi: https://doi.org/10.1007/s13369-019-04277-9

Seman, N. A. A., Govindan, K., Mardani, A., Zakuan, N., Saman, M. Z. M., Hooker, R. E., & Ozkul, S. (2019). The mediating effect of green innovation on the relationship between green supply chain management and environmental performance. Journal of cleaner production, 229, 115-127. doi: https://doi.org/10.1016/j.jclepro.2019.03.211

Shahzad, F., Du, J., Khan, I., Shahbaz, M., Murad, M., & Khan, M. A. S. (2020). Untangling the influence of organizational compatibility on green supply chain management efforts to boost organizational performance through information technology capabilities. Journal of cleaner production, 266, 122-145. doi: https://doi.org/10.1016/j.jclepro.2020.122029

Sun, H., Awan, R. U., Nawaz, M. A., Mohsin, M., Rasheed, A. K., & Iqbal, N. (2020). Assessing the socio- economic viability of solar commercialization and electrification in south Asian countries. Environment, Development and Sustainability, 1-23. doi: https://doi.org/10.1007/s10668-020-01038-9

Zhang, Q., & Cao, M. (2018). Exploring antecedents of supply chain collaboration: Effects of culture and interorganizational system appropriation. International Journal of Production Economics, 195, 146-157. doi: https://doi.org/10.1016/j.ijpe.2017.10.014

Downloads

Published

2021-04-30

How to Cite

AHMAD, D. M. A. ., & HASHMI, D. A. . (2021). The Role of Effective Supply Chain Practices on Firm Performance: Mediating Role of Organizational Culture. The Journal of Contemporary Issues in Business and Government, 27(2), 2219–2227. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/1126