Relationship between SCM Strategies and Firm's Performance with the Mediating Role of Organizational Competence in Manufacturing Sector of Pakistan”

Abstract

Purpose of the Study: This study was aimed to observe the impact of supply chain management strategies i.e. Warehouse Management System, Enterprise Resource Planning and Outsourcing, on Firm Performance with the mediating role of Organizational Competence in manufacturing sector of Pakistan. Design/Methodology/Approach: This study is quantitative in nature, for which the data has been collected through a structured questionnaire of 28 items, which were mainly filled by the personnel from different firms of textile, pharmaceutical, steel and fertilizer sectors of Pakistan. About 500 questionnaires were sent through official websites, email and business communication-based platforms, out of which 307 responses were received with response rate of 61.4% without any missing or incomplete response. The collected data was then analyzed through SPSS (Statistical Package for Social Sciences) Software, using a number of statistical analysis i.e. reliability, correlation, regression, mediation analysis to test the study hypotheses. Findings: Findings of the study revealed that all the three independent variables namely “Warehouse Management System, Enterprise Resource Planning and Outsourcing” (three Supply Chain Management Strategies) have a significant direct impact on the dependent variable which is “Firm Performance”. Study results also have revealed that mediating variable “Organizational Competence” also has a significant impact on Firm Performance. Furthermore, it was concluded that Organizational Competence significantly mediates the relationship among all three Supply Chain Management Strategies and Firm Performance among these manufacturing firms. Originality: This study is the first study of its kind to investigate the relationship of supply chain management strategies i.e. Warehouse Management System, Enterprise Resource v Planning and Outsourcing, on Firm Performance with the mediating role of Organizational Competence in manufacturing sector of Pakistan, which was not examined earlier in Pakistani context.