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The Impact of Production and Operations Management Practices in Improving Organizational Performance: The Mediating Role of Supply Chain Integration

Author

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  • Ammar Salah

    (Business Management Department, Girne American University, North Cyprus via Mersin 10, Kyrenia 99320, Turkey)

  • Dilber Çağlar

    (Faculty of Business and Economics, Girne American University, North Cyprus via Mersin 10, Kyrenia 99320, Turkey)

  • Khaled Zoubi

    (Department of Business Management, Irbid National University, Irbid 21110, Jordan)

Abstract

While prior research has consistently established a significant link between production and operations management (POM) practices and organizational financial performance (OFP) across various contexts, the mechanisms driving this connection remain unclear. This study addresses this gap by examining the mediating role of supply chain management (SCM) integration in the relationship between POM practices and OFP within manufacturing firms. Drawing on established theories and concepts such as the resource-based view (RBV) of firm and operation strategies, this study employed a quantitative research design. Survey data were collected from 209 managers in Jordanian manufacturing firms and analyzed using structural equation modeling (SEM). The results confirmed a positive and significant association between POM practices and both SCM integration and OFP. Furthermore, SCM integration partially mediated the impact of POM practices on OFP, thereby underscoring its role in transmitting positive effects to financial performance. This research contributes to the field by integrating POM practices with SCM integration and by elucidating the mechanisms through which these practices influence financial performance in Jordanian manufacturing firms. Through this, our understanding of these relationships for practitioners and researchers alike is enhanced.

Suggested Citation

  • Ammar Salah & Dilber Çağlar & Khaled Zoubi, 2023. "The Impact of Production and Operations Management Practices in Improving Organizational Performance: The Mediating Role of Supply Chain Integration," Sustainability, MDPI, vol. 15(20), pages 1-18, October.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:20:p:15140-:d:1265007
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    References listed on IDEAS

    as
    1. Miklós Pakurár & Hossam Haddad & János Nagy & József Popp & Judit Oláh, 2019. "The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector," Sustainability, MDPI, vol. 11(5), pages 1-20, February.
    2. Kim, Soo Wook, 2009. "An investigation on the direct and indirect effect of supply chain integration on firm performance," International Journal of Production Economics, Elsevier, vol. 119(2), pages 328-346, June.
    3. Macchion, Laura & Moretto, Antonella & Caniato, Federico & Caridi, Maria & Danese, Pamela & Vinelli, Andrea, 2015. "Production and supply network strategies within the fashion industry," International Journal of Production Economics, Elsevier, vol. 163(C), pages 173-188.
    4. Zhang, Min & Guo, Hangfei & Huo, Baofeng & Zhao, Xiande & Huang, Jianbo, 2019. "Linking supply chain quality integration with mass customization and product modularity," International Journal of Production Economics, Elsevier, vol. 207(C), pages 227-235.
    5. Huo, Baofeng & Gu, Minhao & Jiang, Bin, 2018. "China-related POM research: Literature review and suggestions for future research," International Journal of Production Economics, Elsevier, vol. 203(C), pages 134-153.
    6. Chang, Woojung & Ellinger, Alexander E. & Kim, Kyoungmi (Kate) & Franke, George R., 2016. "Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors," European Management Journal, Elsevier, vol. 34(3), pages 282-295.
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