Supply Chain Management and Organisational Performance: Mediation Effect of Competitive Advantage
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Date
2021
Authors
Wainaina, Charles M
Bett, Erick K
Njehia, Benard K
Journal Title
Journal ISSN
Volume Title
Publisher
ExcelingTech Publishers
Abstract
—Supply chain management (SCM) practices have
become strategic resources and capabilities for enhancing both
competitive advantage organisational performance
(ORGPER). However, it is not clear how SCM Practices
influence organisational performance in the agribusiness
context. However, the mechanism of SCMPs effects is not yet
understood since extant literature has produced mixed results.
Therefore, this study sought to examine the mediation effects of
competitive advantage in the relationship between SCMPs and
ORGPER from the dairy supply chain perspective in Kenya.
The study postulated four hypotheses that were tested using
Partial least squares structural equation modelling (PLS-SEM)
techniques to address the study objectives. A cross-sectional
survey design was utilised to gather primary data from 109
dairy co-operatives in the thirteen major milk-producing
counties in Kenya. The result revealed that SCM practices have
a positive and significant influence on CA (β=0.730), and
ORGPER (β=0.237). Additionally, CA has a positive,
statistically significant influence on ORGPER (β=0.522).
Further results show that CA mediates the relationship between
SCMPs and ORGPER. Consequently, the study concludes that
SCMPs first generates CA, which in turn enhances ORGPER
in an organisation. Theoretically, the study provides insights
on the resource-based view theory as well as a conceptual
framework for its validation. Similarly, the study informs
managers and policymakers in knowing specific SCMPs to
focus on to enhance CA and ORGPER of the dairy cooperatives in Kenya.
Description
Article
Keywords
Competitive advantage, Organisational performance, Supply chain management, PLS-SEM
Citation
Wainaina, C. M., Bett, E., & Njehia, B. (2021). Supply Chain Management and Organisational Performance: Mediation Effect of Competitive Advantage. International Journal of Supply Chain Management, 10(1), 119-130.