THE IMPACT OF SUPPLY CHAIN MANAGEMENT PROCESSES ON COMPETITIVE ADVANTAGE AND ORGANIZATIONAL PERFORMANCE

Abstract

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 depends on management's ability to integrate the company's intricate network of business relationships. Effective Supply Chain Management 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 conceptualized and developed three dimensions of Supply Chain Management practice (supplier relationship management, manufacturing flow management, and product development and commercialization) and tested the relationships between these Supply Chain Management practices, competitive advantage, and organizational performance. Data for the study were collected from prominent organizations and the relationships proposed in the framework were tested using rigorous statistical techniques. The results indicated that higher levels of Supply Chain Management practice can lead to enhanced competitive advantage and improved organizational performance. These results have value to both the academic and business worlds as they provide verification of the widely held belief of the value of effective supply chain management.