The Impact of Supply Chain Practices and Enterprise Resource Planning on Firm Performance and Competitive Advantage: The Case of Pakistani Companies

Abstract

This research paper is based on “The Impact of Supply Chain Practices and Enterprise Resource Planning on Firm Performance and Competitive Advantage: The Case of Pakistani Companies”. The competitive advantage and firm performance are correlated and the recent technological advancements such as enterprise resource planning system play a key role in establishing and maintaining this relationship. Supply management system binds an organizational structure to support such advancements and vice versa. Pakistan, in this regard, lacks an empirical study covering all sectors of the country. These clauses have been critically discussed within this research by using quantitative research approach. The study has empirically investigated the relationship between enterprise resource planning system and supply chain management practices on competitive advantage and firm performance. It has precisely tested a framework to find the impact of the supply chain management practices and implementation of enterprise resource planning system on the firm performance and competitive advantage of 148 companies listed on the Karachi Stock Exchange in 35 sectors of Pakistan. The research has used path analysis under structural equation model via SPSS AMOS 22 program to testing the hypotheses statistically. The study shows that enterprise resource planning system and supply chain management practices have a positive impact on the firm performance and competitive advantage of an organization within the scenario of the economy of Pakistan.