LINKING SUPPLY CHAIN ORIENTATION TO SUPPLY CHAIN MANAGEMENT FOR ENHANCED PERFORMANCE: AN EMPIRICAL VALIDATION

K.C.S. Ekanayake; V.M. Wickramasinghe; D. Kuruppuarachchi

Authors

K.C.S. Ekanayake Department of Transport and Logistics Management,Faculty of Engineering, University of Moratuwa
V.M. Wickramasinghe Department of Management of Technology, Faculty of Engineering, University of Moratuwa
D. Kuruppuarachchi Department of Decision Sciences, Faculty of Management Studies and Commerce, University of Sri Jayawardenepura

Abstract

Even though Supply Chain Management (SCM) is considered significant for competitive advantage, so far many companies have failed to achieve the desired levels of integration in their supply chains for better performance Therefore, the concept Supply Chain Orientation (SCO) which addresses the behavioural aspect of the field has been identified as an antecedent to SCM that drives integration. This article attempts to empirically validate the causal relationship between; SCO and SCM for improved performance, in Sri Lankan context.

A Questionnaire-based research strategy was performed with measures of all constructs developed on extant literature. Thirty, large scale best performing companies across twelve industries were selected for the study. After a validity and reliability testing for measurement scale purification, the constructs SCO, SCM and Performance were developed using Confirmatory Factor Analysis. Correlation and Regression Analysis was performed to test hypotheses. A statistically significant positive relationship between SCO and SCM with a strong correlation was established, drawing managers‘ attention towards an effective cultural change by introducing the actors of SCO in order to implement SCM initiatives successfully for enhanced performance.

Key Words: Supply Chain Management, Supply Chain Orientation, Organizational Performance

For full paper: fmscresearch@sjp.ac.lk

Author Biographies

K.C.S. Ekanayake, Department of Transport and Logistics Management,Faculty of Engineering, University of Moratuwa

Department of Transport and Logistics Management,Faculty of Engineering, University of Moratuwa

V.M. Wickramasinghe, Department of Management of Technology, Faculty of Engineering, University of Moratuwa

Department of Management of Technology, Faculty of Engineering, University of Moratuwa

D. Kuruppuarachchi, Department of Decision Sciences, Faculty of Management Studies and Commerce, University of Sri Jayawardenepura

Department of Decision Sciences, Faculty of
Management Studies and Commerce, University of Sri Jayawardenepura