An Exploratory Study of the Relationship between Supply Chain Management Practices and Technical Efficiency of Jordanian Manufacturing Companies

Abstract

Recent arguments states that competition is no longer between organizations, but among supply chains to support different competitive priorities. Effective supply chain management (SCM) practices have become a recognized way of achieving competitive advantage and improving organizational financial performance. This paper presents an exploratory study of the relationship between (SCM) practices and organizational financial performance. Although research on the relationship was investigated by relating SCM practices and single organizational financial performance, but no research have surrogated many organizational financial performance in one measurement. Technical efficiency was used to surrogate organizational financial performance of Jordanian manufacturing companies. Data for the study was collected from 28 manufacturing companies registered in first market of Amman Stock Exchange. The results indicate a strong relationship between SCM practices and bottom-line profits of an organization.