The Effect of Supply Chain Management Processes on Competitive Advantage and Organizational Performance
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT
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One of the most significant changes in the paradigm of modern business management is that individual businesses no longer compete as solely autonomous entities, but rather as supply chains. In this emerging competitive environment, the ultimate success of the business will depend on managements ability to integrate the companys intricate network of business relationships. Effective supply chain management SCM has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops three dimensions of SCM practice supplier relationship management, manufacturing flow management, and product development and commercialization and tests the relationships between these SCM practices, competitive advantage, and organizational performance. Data for the study was collected from prominent organizations and the relationships proposed in the framework were tested using rigorous statistical techniques. The results indicate that higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance.
- Administration and Management