Supply chain management measurement and its influence on operational performance

Abstract

This paper empirically confirmed a positive relationship between Supply Chain Management (SCM) and operational performance. A measurement model of the SCM construct was developed. Operational performance was conceptualized using competitive priorities literature with four dimensions: cost, quality, flexibility and delivery. Structural equation modeling was used to analyze a sample of 103 companies, in Brazil. Results showed positive effects of SCM on all performance dimensions, offering further support for the cumulative capabilities perspective. We also found evidence of an operational competence construct mediating the effect of SCM on performance, supported conceptually by the resource-based and relational views of strategy.