An empirical model relating Supply Chain Sourcing performance, Making performance and Delivery performance to Company Performance

Authors

  • Satish Mohanram PSG Institute of Management
  • Vivek N PSG Institute of Management

Abstract

In today’s complex Business scenario, success to an organization is not easy. Every company works hard to better their products and make their supply chain more efficient and effective. R&D is about creativity and being innovative, to bring unique value propositions and solutions to the customers.  There is very little that can be done to control it. Whereas, the area of Supply chain is one that can be tweaked to deliver performance, starting from providing the best in class service to customers to be able to push the profits up.

This research paper is an initiative to establish a relationship between the components of Supply chain, namely Plan, Source, Make, Deliver and the overall Company Performance.  A random set of 54 firms from Chennai have been studied with an objective to find a relationship between the components of Supply chain and the company performance. These firms were administered a structured questionnaire containing pre validated scales to measure the Supply chain components and relative performance of these organizations.

After the data was collected, the scales were purified using Loading values and Composite reliability. The resultant purified scales were then tested for convergent validity using PLS path modeling software (Visual PLS). Once the constructs were both reliable and valid, the impact of supply chain components on company performance was tested using bootstrapping method. The result shows that there is a significant correlation between the Sourcing, Delivery functions of the Supply chain and the company performance. The making function does not seem to have a significant impact on the company performance.

Author Biographies

Satish Mohanram, PSG Institute of Management

Satish M, is pursuing his PhD at PSG institute of Management Coimbatore under the guidance of Dr N.Vivek. He completed his BE in Electronics and Communication and MBA in Marketing has been working with NI Systems India Pvt Ltd a fully owned subsidiary of National Instruments Corporation for the last 9 years in different capacities managing sales, Application Engineering and recently Technical Marketing. He also serves as a Visiting faculty at PSG Tech.

Vivek N, PSG Institute of Management

Dr N.Vivek is a faculty at PSG Institute of Management. He has completed his MBA from Sri Sathya Sai Institute of Higher Learning. He has completed his PhD in Anna University, Chennai. He has specialized in operations and supply chain management. His areas of interest include quantitative techniques, research methods and Supply Chain Management. He has 2 years of industry and 15 years of teaching experience. He has more than 10 international publications to his credit.

References

Barney, J. (2012). Purchasing, Supply Chain Management and Sustained Competitive Advantage: The Relevance of Resourceâ€Âbased Theory. Journal of Supply Chain Management. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1745-493X.2012.03265.x/full

Chin, W. W., Degross, J. I., & Marcolin, B. L. (1996). A Partial least suares latent variable modeling approach for measuring interaction effects: Results from Monte Carlo Simulation study and Voice mail emotion/Adoption study. Proceesings of 17th International confwernce on Information Systems.

Fantazy, K. A., Kumar, V., & Kumar, U. (2009). An empirical study of the relationships among strategy, flexibility, and performance in the supply chain context. Supply Chain Management: An International Journal, 14(3), 177–188. doi:10.1108/13598540910954520

Fawcett, S. E., Allred, C., Magnan, G. M., & Ogden, J. (2009). Benchmarking the viability of SCM for entrepreneurial business model design. Benchmarking: An International Journal, 16(1), 5–29. doi:10.1108/14635770910936496

GS1. (2008). Improving Supply Chain Operation. Improving Supply Chain Operation Self-Assessment and Improvement Using a Supply Chain Maturity Reference Model (pp. 1–4).

Gilbert A Churchill, J. (1986). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16, 64.

III, A. L., & McCormack, K. (2004). The development of a supply chain management process maturity model using the concepts of business process orientation. Supply Chain Management: An …. Retrieved from http://www.emeraldinsight.com/case_studies.htm/journals.htm?articleid=858336&show=html&WT.mc_id=alsoread

Janvier-James, A. M. (2011). A New Introduction to Supply Chains and Supply Chain Management: Definitions and Theories Perspective. International Business Research, 5(1), 194–208. doi:10.5539/ibr.v5n1p194

Joyce, W. B. (2006). Accounting, purchasing and supply chain management. Supply Chain Management: An International Journal, 11(3), 202–207. doi:10.1108/13598540610662095

Lin, C., Chow, W., Madu, C., Kuei, C., & Peiyu, P. (2005). A structural equation model of supply chain quality management and organizational performance. International Journal of Production Economics, 96(3), 355–365. doi:10.1016/j.ijpe.2004.05.009

McCormack, K., Ladeira, M. B., & Oliveira, M. P. V. D. (2008). Supply chain maturity and performance in Brazil. Supply Chain Management: An International Journal, 13(4), 272–282. doi:10.1108/13598540810882161

McDonald, R. P. (1981). The dimensionality of tests and items. British Journal of Mathematical and Statistical Psychology, 34(10.1111/j.2044-8317.1981.tb00621.x), 100–117.

Netland, T., Alfnes, E., & Fauske, H. (2007). How mature is your supply chain?-A supply chain maturity assessment test. Proceedings of the 14th International …, 1–10. Retrieved from https://www.sintef.no/project/Smartlog/Publikasjoner/2007/Netland et al _2007_ How mature is your supply chain.pdf

Nunnally, J. C. (1978). Psychometric Theory. McCraw-Hill, New York, NY.

Oliveira, M. P. V. D., Ladeira, M. B., & McCormack, K. P. (2011). The Supply Chain Process Management Maturity Model – SCPM3.

In D. Onkal (Ed.), Supply Chain Management Pathways for Research and Practice (pp. 201–218). InTech.

Phelps, T. (2006). SCOR and Benefits of Using Process Reference Models. Development.

Tan, K. C., Vijay, R., & Robert, B. (1998). Supply chain management : Supplier performance and firm performance. International Journal.

Vachon, S., & Klassen, R. D. (2002). An exploratory investigation of the effects of supply chain complexity on delivery performance. IEEE Transactions on Engineering Management, Vol. 49 ,(No. 3), pp. 218–30.

Vanany, I., Suwignjo, P., & Yulianto, D. (2005). Design of Supply chain performance. 1st International Conference on Operations and Supply Chain Management, 78–86.

Vivek.N, & D, S. (2009). An Empirical Study On The Impact Of Supplier Performance On Organizational Performance: A Supply Chain Perspective. South Asian Journal Of Management, 16(3), 63–72.

Vivek.N, & Ravindran.Sudharani. (2009). An Empirical Study on the Impact of Supplier Performance on Organizational Performance : A. South Asian Journal of Management, (Jul-Sep), 16, 3.

Wong, W. P., & Wong, K. Y. (2008). A review on benchmarking of supply chain performance measures. Benchmarking: An International Journal, 15(1), 25–51. doi:10.1108/14635770810854335

Downloads

Published

04-03-2014

How to Cite

Mohanram, S., & N, V. (2014). An empirical model relating Supply Chain Sourcing performance, Making performance and Delivery performance to Company Performance. Journal of Contemporary Research in Management (JCRM), 9(1). Retrieved from https://jcrm.psgim.ac.in/index.php/jcrm/article/view/304

Issue

Vol. 9 No. 1 (2014)

Section

Articles