NATIONAL UNIVERSITY OF BATTAMBANG
GRADUATE SCHOOL
Subject: Logistic and Supply Chain Management
Title:
The Impact of Supply Chain Management Practices on Competitive Advantage
and Organizational Performance
បង្រៀនដោយសាស្ត្រា ចារ្យ: រ័ត្ន ប៊ុនហង្ស
រៀបចំដោយនិស្សិត:
ទីង ហ៊ួយចេង ឈឿម វិច្ឆិកា យឹម គឹមស៊ា ន
ឡាង ប៊ុនធឿន សំ សុវណ្ណរដ្ឋ ថូយ ស្រីរ័ត្ន
ជំនាន់ទី ១៧
2023
CONTENTS
Abstract...........................................................................................................................................2
1.Introduction...................................................................................................................................2
2.Research Objectives......................................................................................................................3
2.2.Research Hypothesis......................................................................................................3
3.Research
Methodology..................................................................................................................3
4.Results...........................................................................................................................................3
5.Conclusion....................................................................................................................................4
REFERENCES
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The Impact of Supply Chain Management Practices on Competitive
Advantage and Organizational Performance
Abstract
This research aims to explore the relationship between the influence of supply chain
management practices on competitive advantage and organizational performance. A set of
questionnaires was used as the main tool of data collection. The study was administrated to a
total sample of 165 employees from various organizations. The data were analyzed using
mean, standard deviation and correlation between independent and dependent variables. The
reliabilities of the data were assessed with Cronbach’s Alpha. The results showed that higher
levels of supply chain management practices can lead to increased competitive advantage and
improved organizational performance.
1.Introduction
Supply chain has become an important focus of competitive advantage for organization business.
According to Beamon B. (1998), a Supply Chain is “a structured manufacturing process where
raw materials are transformed into finished goods, then delivered to end customers”. The
connections in a supply chain achieve functions that contribute to the value of the goods
transporting through the chain and thus its achievement. Any connection that does not carry out
well reduces the overall effectiveness of the whole supply chain (Janvier-James, 2011). A supply
chain covers all the parties (manufacturer, suppliers, transporters, warehouses, retailers and even
customers themselves) that involve directly or indirectly in fulfilling a customer request. The
goal of supply chain management is to improve the trust and collaboration of a number of supply
chain partners as well as visible inventory improvements and the speed at which inventory
increases (Cahyono et al., 2023). Supply chain management practices impact not only on overall
organizational performance, but also competitive advantage of an organization. They are
expected to improve an organization’s competitive advantage through price/cost, quality,
delivery dependability, time to market, and product innovation (Li et al., 2006).
The purpose of this study to find out the effect of supply chain management strategy such as lean
supply chain, agile supply chain, and hybrid supply chain on supply chain performance. This
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study also investigates the effect of supply chain management practices in terms of strategic
supplier partnership, customer relationship and information sharing on supply chain
performance.
2.Research Objectives
The research objectives in this study were to investigate the relationship between the influence of
supply chain management practices on competitive advantage and organizational performance.
This study has answered at least three research questions: (1) whether organizations with high
levels of SCM practices have high levels of organizational performance; (2) whether
organizations with a high level of SCM practice have a high level of competitive advantage as
well; (3) does an organization with a high level of competitive advantage have a high level of
organizational performance as well.
2.1. Research Hypothesis
H1: Firms with high levels of SCM practices will have high levels of organizational
performance.
H2: Firms with high levels of SCM practices will have high levels of competitive advantage.
H3: The higher the level of competitive advantage, the higher the level of organizational
performance.
3. Research Methodology
A survey was mostly used by many researchers to collect data. A set of questionnaires using a
five-point Likert scale: strongly agree score (5), agree on the score (4), neutral score (3), disagree
score (2) and strongly disagree score (1) were delivered to the participants.
4. Results
Supply chain management practices does not only have an impact on the organization's overall
performance, but also the competitive advantage of an organization. Supply chain management
practices can increase an organization's competitive advantage through price/cost, quality,
delivery dependability, time to market, and product innovation. This results support the study of
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(Knight et al., 1986), which revealed the six elements of supply chain management techniques
such as strategic supplier partnerships, customer interactions, information exchange,
information quality, internal lean practices, and postponement that can increase competitive
advantage and improve organizational performance. Moreover, previous studies have also shown
that various components of supply chain management practice (such as strategic supplier
partnerships) impact various aspects of competitive advantage (such as price/cost). Good supply
chain integration enables organizations to make reliable deliveries and get products to market
quickly. Next, organizations that have a competitive advantage generally show that an
organization can have advantages over their competitors, namely: lower prices, higher quality,
higher reliability, and shorter delivery.
Supply chain management has become part of the company's strategy in building a competitive
advantage. In the context of supply chain management, logistics (logistics) is needed to move the
position of materials or goods. Logistics strategies can be implemented to achieve efficiency and
effectiveness in managing raw material inventory, production processes, and distribution of
finished goods. Supply chain management involves so many processes, from production
preparation to meeting consumer needs.
5.Conclusion
This paper provides empirical justification for a framework that identifies six key dimensions of
supply chain management practices and describes the relationship among SCM practices,
competitive advantage, and organizational performance. For the purpose of investigating these
issues, a valid and reliable instrument for assessing supply chain management practices was
developed using rigorous statistical test. This study provides empirical evidence to support
conceptual and prescriptive statements in the literature regarding the impact of supply chain
management practices.
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REFERENCES
Beamon, B. M. (1998). Supply Chain Design and Analysis: Models and Methods. International
Journal of Production Economics, 55, 281-294. https://doi.org/10.1016/S0925-5273(98)00079-6
Cahyono, Y., Purwoko, D., Koho, I. R., Setiani, A., Supendi, Setyoko, P. I., Sosiady, M., &
Wijoyo, H. (2023). The role of supply chain management practices on competitive advantage
and performance of halal agroindustry SMEs. Uncertain Supply Chain Management, 11(1), 153–
160. https://doi.org/10.5267/j.uscm.2022.10.012
Janvier-James, A. M. (2011). A New Introduction to Supply Chains and Supply Chain
Management: Definitions and Theories Perspective. International Business Research, 5(1), 194–
208. https://doi.org/10.5539/ibr.v5n1p194
Knight, F. E., Michel, D. E., & Stadum-Velez, K. (1986). Information sharing. Music Therapy
Perspectives, 3(1), 53–54. https://doi.org/10.1093/mtp/3.1.53
Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Subba Rao, S. (2006). The impact of supply
chain management practices on competitive advantage and organizational performance. Omega,
34(2), 107–124. https://doi.org/10.1016/j.omega.2004.08.002
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