Abstract:
Purpose
The aim behind this research is to know the basic components of supply chain management
(SCM) practices and to exactly test a structure distinguishing the connections among
operational performance, SCM practices and SCM-related organizational performance with
unique accentuation on small and medium size enterprises (SMEs) in Pakistan.
Methodology & Design
Data for the study were collected from a sample of 235 employees of different SMEs
operating in the Pakistan within the city of karachi. The research framework was tested using
partial least squares method, which is a variance-based structural equation modeling
approach.
Findings
Based grouped in two factors: on exploratory factor analysis (EFA), SCM practices
outsourcing and multi-suppliers (OMS), and strategic collaboration and lean practices
(SCLP). The results indicate that both factors of SCLP and OMS have direct positive and
significant impact on operational performance. In contrast, both SCLP and OMS do not have a significant and direct impact on SCM-related organizational performance. Also, as the direct relationship between the two performance-constructs was found significant, both
factors of SCM practices have an indirect and significant positive effect on ORG through
Oil
OPER.
Limitations
Perhaps, the most serious limitation of this study was its narrow focus on Pakistani SMEs
thus precluding the generalization of findings to other emerging countries as well as other
sectors such as service and government sectors that may benefit from a sound SCM strategy.
