Supply Chain Management and Operational Performance in Nigeria: A Panel Regression Model Approach

  • 1 Olabisi Onabanjo University

Abstract

The research examined the effect of supply chain management on firm’s operational performance in Nigeria manufacturing companies with specific interest on supply chain strategy and supply chain flexibility. A random effect model was developed to examine whether there is a significant effect on the variables identified, and the level of significance that exist in the variables. This study adopts an ex post-facto type of descriptive research design using Secondary sources to generate the data. The data were gathered from the annual report of manufacturing companies between 2011 and 2016. Findings revealed that supply chain management does not have a significant overall effect on operational performance at Prob value =0.343 which is above the sig. level of <.005, and the magnitude of variation which supply chain management cause on operational performance is 7.6% for all the companies samples which is significantly low. Hence, it is recommended that the management of a company’s supply chain do not necessarily affect their operations; thus organizations can adopt a combination of strategies and flexibilities in their level of operation.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Adebayo, I. T. (2012). Supply chain management (SCM) practices in Nigeria today: impact on SCM performance. European Journal of Business and Social Sciences, 1(6), 107-115.

  • Agus, A. (2010). Supply chain management, process performance and business performance. Conference of the International Journal of Arts and Sciences, Rome, Italy, 22-25.

  • Ali, O., & Güven, S. (2009). Supply chain management as a sustainable performance booster for the accommodation enterprises: evidence from North Cyprus tourism sector. International Journal of Business and Management, 4(2), 97-111.

  • Arawati, A. (2011). Supply chain management, supply chain flexibility and business performance. Journal of Global Strategic Management, 5(1), 134-145.

  • Arawati, A., (2015). Supply chain management: the influence of SCM on production performance and product quality. Journal of Economics, Business and Management, 3(11), 1046-1053.

  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.

  • Chen, H. J., & Lin, T. C. (2009). Exploring source of the variety in organizational innovation adoption issues: an empirical study of managers’ label on knowledge management project issues in Taiwan. Expert Systems with Applications, 36(2), 1380–1390.

  • Christopher, M., Peck, H., & Towill, D. (2006). A taxonomy for selecting global supply chain strategies. The International Journal of Logistics Management, 17(2), 277-287.

  • Dash, S., Bruning, E. D., & Guin, K. K. (2007). Antecedents of long-term buyer-seller relationships: a cross cultural integration. Academy of Marketing Science Review, 11, 1-28.

  • Dyer, J. H., and Singh, H. (1998). The relational view: cooperative strategy and sources of inter-organizational competitive advantage. Academy of Management Review, 23(4), 660-679.

  • Fantazy, K. A., Kumar, V., & Kumar, U. (2010) Supply management practices and performance in the Canadian hospitality industry. International Journal of Hospitality Management, 29(4), 685-693.

  • Ganeshan, R., & Harrison, T. P. (1999). An introduction to supply chain management. Online internet, http//silmaril.smeal.psu.edu/misc/supply_chain_intro.html.

  • Gilaninia, S. H., Chirani, E., Ramzani, E., & Mousavian, S. J. (2011). The impact of supply chain management practices on competitive advantage. Interdisciplinary Journal of Contemporary Research in Business, 3(6), 577-587.

  • Hamid, K., and Hamid, R. A. (2014). Study of performance measurement practices in supply chain management. Proceedings of the 2014 International Conference on Industrial Engineering and Operations Management Bali, Indonesia, January 7 – 9, 273-285.

  • Harrington, H. J. (1991). Business process improvement. McGraw-Hill, New York, NY.

  • Holcomb, T. R., & Hitt, M. A. (2007). Toward a model of strategic outsourcing. Journal of Operations Management, 25, 464-481.

  • Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: translating strategy into action. Harvard Business School Press, Boston, MA.

  • Katz, J. P., Bloodgood, J. M., & Pagell, M. D. (2003). Strategies of supply communities. Supply Chain Management: An International Journal, 8(4), 291-302.

  • Kumar, V., Fantazy, K., Kumar, U., & Boyle, T. (2006). Implementation and management framework for supply chain flexibility. Journal of Enterprise Information Management, 19(3), 303-319.

  • Lee, H. L. (2004). A triple-A supply chain. Harvard Business Review, 82(10), 102-112.

  • Mohamed, M. D., Abdellatif, B., & Fakher, J. (2012). Supply chain flexibility and balanced scorecard: conceptual model and empirical study in Tunisian companies launched upgrading program. Polish Journal of Management Studies, 5, 34-59.

  • Nemeth, P. (2008). Flexibility in supply chain management. Acta technical Jaurinesis Series Logistica, 1.

  • Njoku, M. E., & Kalu, A. O. U. (2015). Effective supply chain management: a strategic tool for profitability enhancement in the competitive marketing environment (an empirical evidence in the Nigerian food and beverage Industry 2005 - 2014). European Journal of Business and Management, 7(13), 234-248.

  • O’Regan, N., & Ghobadian, A. (2004). The importance of capabilities for strategic direction and performance. Management Decision, 42(2), 292-313.

  • Peteraf, M. A. (1993). The cornerstones of competitive advantage: a resource based view. Strategic Management Journal, 14, 179-191.

  • Quinn, F. J. (1997). What’s the buzz? Logistics Management, 36(2), 43-7.

  • Rungtusanatham, M., Salvador, F., Forza, C., & Choi, T. Y. (2003). Supply-chain linkages and operational performance: a resource-based-view perspective. International Journal of Operations and Production Management, 23, 1084–1099.

  • Sachin, B. M., & Vincent, A. M. (2010). Exploring the relationship between efficient Supply chain management and firm innovation: an archival search and analysis. Journal of Supply Chain Management, 46(4), 81-94.

  • Schonsleben, P. (2004). Integrated logistics management: planning and control of comprehensive supply chains. Boca Raton, FL.: St, Lucie Press.

  • Scott, C., & Westbrook, R. (1991). New strategic tools for supply chain management. International Journal of Physical Distribution and Logistics Management, 19(2), 13 - 33.

  • Somuyiwa, A., Mcilt, M., & Adebayo, T. I. (2012). Firm’s competitiveness through supply chain responsiveness and supply chain management practices in Nigeria. British Journal of Arts and Social Sciences, 10(1), 42-52.

  • Toften, K., & Olsen, S. O. (2003). Export market information use, organizational knowledge and firm performance: a conceptual framework. Industrial Marketing Review, 20(1), 95–110.

  • Tomkins, C. (2001). Interdependencies, trust and information in relationships, alliances and networks. Accounting, Organizations and Society, 26(2), 161−191.

  • Tummala, R., Philips, C., & Johnson, M. (2006). Assessing supply chain management success factors: a case study. Supply Chain Management: An International Journal, 11(2), 179-192

  • Vickery, S. R., & Calantone, C. D. (1999). Supply chain flexibility: an empirical study. The Journal of Supply Chain Management, 16-24.

  • Viswanadham, N., & Srinivasa, R. N. R. (1997). Flexibility in manufacturing enterprises. Sädhanä, 22(2), 135-163.

  • Wilson, D. T. (1995). An integrated model of buyer-seller relationships. Journal of the Academy of Marketing Science, 23(4), 335-345.

  • Windischer, A., & Grote, G. (2003). Success factors for collaborative planning, in Seuring, S., Miller, M., Goldbach, M., and Schneidewind, U. (Eds), Strategy and Organizations in Supply Chain, Physica, Heidelberg, 131-46.

OPEN ACCESS

Journal + Issues

Search