Supply chain management practices and the organizational performance of manufacturing SMEs in an emerging economy: the mediating role of supply chain performance

PurposeThis study assesses the impact of supply chain management practices (SCMP) on the performance of manufacturing Small and Medium Enterprises (SMEs) in the burgeoning economy of Ghana, utilizing supply chain performance (SCP) as a mediator. The study is grounded in relational view theory. The comprehensive metrics for SCMP, SCP, and operational performance (OP) were derived from an extensive review of the authoritative literature.Design/methodology/approachQuestionnaires were administered to gather data from 454 participants. Data were analyzed using Partial Least Squares (PLS)-based Structural Equation Modeling (SEM).FindingsThe analysis revealed that three dimensions of SCMP—customer relationship, postponement, and strategic supplier relationship—significantly influence OP, whereas information sharing and logistics integration do not. Furthermore, the study found no mediation effect of the four mediators on the relationships among supplier relationships, postponement, customer relationships, and OP. However, all SCP dimensions fully mediate the relationships among logistic integration, information sharing, and OP. These findings imply that excellence in SCMP alone does not guarantee superior organizational performance.Practical implicationsThe findings imply that investing in SCMP alone may not be sufficient to drive superior OP; however, SCPs are crucial to fully realize the full potential of SCMPs in enabling OP, especially in the context of SMEs.Originality/valueThis study contributes to the existing SCM literature by examining how SCMPs and SCP facilitate OP in developing countries. The paper also advances the SCMP literature by theorizing and validating an important but rarely studied role of the SCP. Thus, this study extends our understanding of the mechanisms through which SCMPs affect OP.