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The Effect of Supply Chain Management Strategy on Operational and Financial Performance

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  • Rok Lee

    (Department of LINC Plus Project Organization, Gyeongsang National University, Jinju 52828, Korea)

Abstract

Given that small and medium manufacturing enterprises (SMEs) are key to national economic development, the application of supply chain strategies that support their sustainability is critical. This study aims to identify the effects of supply chain management (SCM) on the operational performance of SMEs in Korea, specifically considering organizational competencies. To achieve this, an empirical survey was conducted on 300 Korean manufacturing SMEs that had introduced SCM strategies. The relationships between the variables were analyzed through structural equation modeling. These show that specific SCM strategies and organizational competencies had a significant effect on overall business performance. Furthermore, the SCM strategies had a significant effect on SME organizational competencies. Additionally, we analyzed the mediating effect of organizational competencies on the effect of SCM strategy on overall business performance. We found that organizational competence mediated the effect of SCM strategy on operational performance, but not on financial performance. The study shows that introducing SCM strategies directly improves business performance and is closely related to competencies such as research and development, technology commercialization, production capability, and marketing capabilities. Consequently, a combination of SCM strategies and organizational competencies can generate sustainable overall business performance among SMEs.

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  • Rok Lee, 2021. "The Effect of Supply Chain Management Strategy on Operational and Financial Performance," Sustainability, MDPI, vol. 13(9), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:5138-:d:548637
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    References listed on IDEAS

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    Cited by:

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    3. Ruben Wahyu Santoso & Hotlan Siagian & Zeplin Jiwa Husada Tarigan & Ferry Jie, 2022. "Assessing the Benefit of Adopting ERP Technology and Practicing Green Supply Chain Management toward Operational Performance: An Evidence from Indonesia," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    4. Ahmed Attia, 2023. "Effect of Sustainable Supply Chain Management and Customer Relationship Management on Organizational Performance in the Context of the Egyptian Textile Industry," Sustainability, MDPI, vol. 15(5), pages 1-16, February.
    5. Mahmoud Abou Kamar & Omaima Munawar Albadry & Samar Sheikhelsouk & Mohammed Hasan Ali Al-Abyadh & Omar Alsetoohy, 2023. "Dynamic Capabilities Influence on the Operational Performance of Hotel Food Supply Chains: A Mediation-Moderation Model," Sustainability, MDPI, vol. 15(18), pages 1-21, September.
    6. Guangyang Wang & Junwei Bai & Jian Xing & Jianfei Shen & Erli Dan & Xinyuan Zheng & Ludan Zhang & Peng Liu & Renchi Feng, 2023. "Operational Efficiency and Debt Cost: The Mediating Effect of Carbon Information Disclosure in Chinese Listed Companies," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    7. Heira Georgina Valdez Bocanegra, 2024. "Effects of Supply Chain Management on Competitiveness and Performance: Empirical Evidence in Mexico," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(1), pages 1-6.
    8. Claude Bernard Lontchi & Baochen Yang & Kabir Musa Shuaib, 2023. "Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy," Sustainability, MDPI, vol. 15(3), pages 1-15, January.

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