How a supply chain process matters in firms' performance-an empirical evidence of Pakistan

Abstract

In recent years, supply chain processes (i.e. demand management, customer relationship management, and new product development) have gained a great importance from academicians and practitioners. Yet, research into the subject of supply chain processes' effects on performance is nascent. The purpose of this study is to examine the process dimensions' effects on supply chain (SC) partners' trust and firms' performance as supply chain processes are essential for firms' competitiveness. The research framework consists of seven hypotheses. An empirical study was conducted in Pakistan, and the data were collected from 164 supply chain firms. The reliability and validity of the model were examined through the exploratory factor analysis (EFA) and Confirmatory factor analysis (CFA). The results delineate that supply chain processes have a significant relationship with SC partners' trust and performance. Thus, all hypotheses were supported. This study presents interesting theoretical contributions and managerial implications. At last, limitations regarding future research directions are discussed.