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International Journal of Science and Research (IJSR)
ISSN (Online): 2319-7064
Impact Factor (2012): 3.358
Volume 3 Issue 8, August 2014
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Supply Chain Management Practices and Supply
Chain Performance Effectiveness
Dr. Siddig Balal Ibrahim1, Abdelsalam Adam Hamid2
1,2Sudan University of Science and Technology College of Business Studies, Sudan
Abstract: Supply chain performance effectiveness helps to provide many direct and indirect benefits for suppliers and manufacturing
companies where it represents the ability to invent and produce solutions that add more value to (customers) than existing offers, also
effectiveness adds great important for both manufacturing companies , supplier network and other parties, By using Resources based
view theory the study aims to identify the effects of different dimensions of supply chain management practices (SCMP) on supply chain
performance effectiveness (SCPE) of Sudanese manufacturing companies .and The quantitative method was employed, where
convenience sampling and self-administrated survey questionnaires were sent to 110 manufacturer companies in Sudan. The study has
found many empirical results which indicate that the practices of supplier’s management have a significant positive effect on supply
chain performance effectiveness. Furthermore the result of factor analysis adds a new dimension for supply chain management
practices of Sudanese manufacturing companies. On the other hand the study has some limitations are in its focused on the
manufacturing sector. Also the data were only collected from single respondents in an organization. The Practical implications this
study it may explain to decision-makers and managers the importance of supply chain management practices on increase the supply
chain performance effectiveness
Keywords: Supply chain management practices, Supply chain Performance, Supply chain effectiveness
1. Introduction
Over the past two decades, supply chain management
(SCM), emphasizing the interdependence of buyer and
supplier firms working collaboratively to improve the
performance of the entire supply, has generated extensive
interest in both academic and practitioner communities[1,2].
Supply chain management is an integrated approach
beginning with planning and control of materials, logistics,
services, and information stream from suppliers to
manufacturers or service providers to the end client; it
represents a most important change in business management
practices [3]. It is one of the most effective ways for firms to
improve their performance [4].
SCM includes a set of approaches and practices to
effectively integrate suppliers, manufacturers, distributors
and customers for improving the long-term performance of
the individual firms and the supply chain as a whole in a
cohesive and high-performing business model [5].
A successful SCM implementation is expected to enhance
the relationship between upstream suppliers and downstream
customers, and thereby increase customer satisfaction and
firm performance. Prior research has indicated SCM as a
key driver of firm performance [6].
Everyone agrees that effective supply chain management
can provide a major source of competitive advantage. The
goal of a supply chain manager must therefore be to link the
end customers, the channels of distribution, the production
processes and the procurement activity in such a way that
customers’ service expectations are exceeded and yet at a
lower total cost than the competition
Many SCM studies were conducted in developed countries.
Furthermore most of the previous research focuses on the
relationship between supply chain management practices
and organizational performance [7, 8, 9, 10, 11, 12, 13, 14,
15]. in the other side the supply chain of performance there
are some studies focused on measuring supply chain
performance, such as Performance metrics in supply chain
management by [16, 17, 18, 19,]. Specifically in the supply
chain performance effectiveness. There are very few studies
such as [20, 21, 22].
Despite the importance of supply chain practices on supply
chain performance there is a lack on studies that link supply
chain management practices and supply chain performance
effectiveness this study seeking to contribute in filling this
gap, SCMP in many developing countries is different from
SCMP in developed countries. This study mainly focuses on
Sudanese manufacturing companies. Due to the lack of
studies this study aims empirically test the relationships
between SCM practices and supply chain performance
effectiveness of Sudanese manufacturing companies.
2. Concept of the Supply Chain
The definition of supply chain management Is the integration
of business processes from end user through original supplies
that provides products, services and information that add
value to customers [23] “supply chain" seems to be common
across authors than the definition of "supply chain
management". [24] and Masters proposed that a supply chain
is a set of firms that pass materials forward. Normally several
independent firms are involved in manufacturing a product
and placing it in the hands of the end user in a supply chain –
raw material and component producers, product assemblers
wholesalers, retailer merchants and transportation companies
are all members of a supply chain [24 ].
2.1 Supply chain management practices (SCM P)
The practice of SCM is refers to complete set of actions
which are done in organizations towards to improve the
Paper ID: 020141353
187
International Journal of Science and Research (IJSR)
ISSN (Online): 2319-7064
Impact Factor (2012): 3.358
Volume 3 Issue 8, August 2014
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
effectiveness in the internal supply chain. The modern
evaluation of the SCM practices that comprises of
partnership with the supplier, process of outsourcing,
compression of cycle time, continuousness of process flow
and sharing or technology and information [13] by using
purchasing the quality and relations with the customer SCM
practices are defined as a set of activities undertaken in an
organization to promote effective management of its supply
chain [12]. Supply base management refers to how firms
utilize their suppliers processes , technology and capabilities
to enhance supply chain performance and competitive
advantage and how the manufacturing , logistics , materials ,
distribution and transportation functions are coordinated
within organizations [25 ] , also [26] state that SCM in
practice means includes the involved companies planning
and strategy for coordination of their supply chain ,
including collaboration between functions internally as well
as across company .
SCM practices are defined also as approaches applied in
managing integration and coordination of supply, demand
and relationships in order to satisfy consumers in effective
and profitable manners. A recent study found that firms
often use supplier evaluation or performance measurement
to identify specific supplier deficiencies and to develop
plans to address them [27]. Such efforts may involve the
measurement of supplier’s delivery, quality, and cost
performance, site visits, certification of supplier’s products
and processes, and the setting of performance goals.
6aspect of the SCM practices all the way through the factor
study, integration of SC, sharing of information,
characteristics of supply chain management of client services,
physical proximity also the capabilities of just in time (J.I.T)
[28] relationship in long-standing communication, cross
functional team and participation of vendor for the purpose of
measuring the relationship of supplier and buyer strategic
supplier partnership with the supplier. It is explained as the
long-term based association between company and the
supplier. The purpose is achieve the long term based benefits
in the way of achieving the organizational benefits [29] It
provides the organizations with the supplier and they help the
organization in the process of planning and solving any
problem. It enables the organization to work effectively and
efficiently with the key supplier who are ready to bear the
responsibility about the winner or failure of the product and
the services. The supplier involvement to designing process
of the product and services could be cost efficient [14].
Customer Relationship involves about the managing the
complaints of the customers and fast solutions to their
problems this helps the organization for maintaining the long
term and good relationship with the customers
2.2 The dimensions of supply chain management practices
Many authors studied supply chain management practice and
there are various elements and dimensions have measured or
used to measure the supply chain practice, for more
exploration in the following table some of them:
Table 1: Dimensions of SCM practices
No Author Dimensions
1.
Chin et al. 2011 information sharing, customer relationship, strategic supplier partnership, material flow management
and corporate culture.
2.
Inda , et al , [35] Strategic supplier partnership , customer relationship , information sharing
3.
Chowa , et al , [52] There are four elements (suppliers and customer mgt , information sharing , speed of communication ,
supply chain features)
4.
Min & Mentzer ,
[58]
There are seven elements of supply chain practice such as a greed vision and goals, information sharing,
risk and award sharing, cooperation, process integration, long-term relationship and a greed supply
chain leadership.
5.
Chen & Paulraj [28] Using supplier base reduction , long-term relationship , communication , cross-functional teams and
supplier involvement to measure buyer supplier relationships
6.
Tan, Lyman and
Wisner, [14]
Six elements of supply chain practice (using factor analysis) supply chain integration , information
sharing supply chain characteristics customer service management , geographical proximity and JIT
capability
7.
Alvarado & Kotzab
, [59]
Using inter-organizational system in supply chain practice such as EDI , and elimination of excess stock
levels by postponing customization toward the end of the supply chain
8.
Tan , Kannan and
Handfield [13]
Supply chain practice includes purchasing quality , and customer relations
9.
Donlon , [60] Supply chain practice includes supplier partnership , outsourcing cycle time compression , continuous
process flow and information sharing
3. Customers and Suppliers Management
3.1 Customers Management
Organizations depend on their customers and therefore
should understand current and future customer needs, meet
customer requirements, and strive to exceed customer
expectations. Customer relationship management (CRM) is
an important component of SCM [30]. A firm’s customer
relationship practices can generate the organizational
success in supply chain management practices efforts as
well as its performance [31 ] considered that customer
relationship management can be seen as the consistent
organizational activity under usage of integrated selling,
marketing and service strategy. That is, trying to define the
real need of the customer, by the enterprise integrating
various process and technology, in asking internal product
and service improvement, in order to dawn effort of
enhancing customer satisfaction and loyalty.
3.2 Suppliers Management
Supplier’s partnership represents the long-term relationship
between the organization and suppliers. An effective
supplier’s management can be a critical component of a
Paper ID: 020141353
188
International Journal of Science and Research (IJSR)
ISSN (Online): 2319-7064
Impact Factor (2012): 3.358
Volume 3 Issue 8, August 2014
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
leading edge supply chain [30]. Through strategic supplier
partnerships, organizations can work closely with suppliers
who can share responsibility for the success of the company.
[32] found that the collaboration with other firms or
organizations, also include suppliers, has positive significant
impact on process innovation and incremental product
innovation. Such strategic supplier partnerships should
enable successful SCM.
3.3 Supply chain integration
The integration of supply chains has been described by
Clancy as: attempting to elevate the linkages within each
component of the chain, (to facilitate) better decision
making and to get all the pieces of the chain to interact in a
more efficient way and thus .create supply chain visibility
and identify bottlenecks. The main drivers of integration are
listed by [33] as:
• the information revolution;
• increased levels of global competition creating a more
demanding customer and demand driven markets; and
• the emergence of new types of inter-organizational
relationships.
They describe the three principal elements of an integrated
supply chain model as being information systems
(management of information and financial flows), inventory
management (management of product and material flows),
and supply chain relationships (management of relationships
between trading partners).
The basis of integration can therefore be characterized by
cooperation, collaboration, information sharing, trust,
partnerships, shared technology, and a fundamental shift
away from managing individual functional processes, to
managing integrated chains of processes The extent of
integration can begin with product design, and incorporate
all steps leading to the ultimate sale of the item
(Transportation and Distribution, Modern Materials
Handling, Some authors also include all activities
throughout the useful life of the product including service,
reverse logistics and recycling [34 ].
3.4 Speed of Responsiveness
Inda, Hamid and Tan [35] mentioned the sub-constructs for
supply chain responsiveness includes operation system
responsiveness, logistic process responsiveness and supplier
network responsiveness. Operation system responsiveness is
the ability of firm’s manufacturing system to address
changes in customer demand. Its includes both
manufacturing and service operation, Supplier network
responsiveness is the ability of the firm’s major suppliers to
address changes in the firm’s demand. A key to
responsiveness is the presence of responsive and flexibility
partners upstream and downstream of the firm [36].
Lumnus, Duclos and Vokurka [37] Show that
responsiveness at each company of the chain is an integral
component of supply chain responsiveness. Logistic process
responsiveness is the ability of company’s outbound
transformation, distribution and warehousing system to
address changes in customer demand
3.5 Information sharing
Information sharing is the ability of the firm in sharing
knowledge with supply chain partners in an effective and
efficient approach Effective information sharing is considered
as one of the most important abilities of supply chain process
Information sharing is one of the most important tools for
achieving an integrated and coordinated supply chain Lee
[38] stated that information should be interoperable, which
means that one system can talk to another. Zailani and
Rajagopal [40] add that the technological wave of internet
and e-commerce provides a new opportunity to create a
“smart” integrated supply chain.
Sridharan and Simatupang [39] defined information sharing
as the access to private data between business partners thus
enabling them to monitor the progress of products and orders
as they pass through various processes in the supply chain.
They identified some of element that comprise information
sharing, consisting data acquisition, processing, storage,
presentation, retrieval, and broadcasting of demand and
forecast data, inventory status and location, order status, cost-
related data, and performance status Internet, Intranet, and
Extranet can be distinguished based on characteristics
including access, users, and information. The Internet is a
public network accessed by general users. How-ever, due to
inconsistent format and diversified content, information
available on the Internet is fragmented. By comparison, the
Intranet, via Internet technologies, is a private network set up
within an organization; information is proprietary and only
available for members within the organization.
4. Supply Chain Performance
4.1 Supply chain management measurement
Efficiency and effectiveness have been used as key indicators
measuring supply chain performance. Two well-known
indicators are cost-containment and performance reliability
constructs. Cost-containment indicator includes such
activities as cost in and outbound activities, warehousing
costs, and inventory-holding cost, and increasing asset
turnover. Reliability indicator addresses such areas as order
fulfillment rate, inventory turns, safety stocks, inventory
obsolesces, and number of product warranty claims [41] In
this study supply chain performance is associate with supply
chain performance effectiveness
4.2 Supply chain performance Effectiveness:
Basically, there are two underlying approaches to the concept
of effectiveness in organization theory, namely external and
internal approaches [42]. External approach to organizational
effectiveness, the most widely used effectiveness criterion of
a goal-attainment model, defines organizational effectiveness
as the accomplishment of a set of organizational goals and
objectives [42]. The internal approach to organizational
effectiveness, on the other hand, is based on a well managed
system and competent internal processes. An organization has
a well managed system if its members are highly integrated,
information flows smoothly, and employees achieve good
performance, enjoy job satisfaction and are committed to the
organization Effectiveness is define as the resource getting
Paper ID: 020141353
189
International Journal of Science and Research (IJSR)
ISSN (Online): 2319-7064
Impact Factor (2012): 3.358
Volume 3 Issue 8, August 2014
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
ability , and refers to absolute level of outcome attainment
[43]. and also defined as the ration between the actual output
and normal or expected output [22]. In the logistic it has
been described as the ability to achieve pre-defined
objectives defined logistic effectiveness as the extent to
which the logistics function is goals are accomplished
4.3 RBV Theory
Green, McGaughey and casey [44] and Zailani and
Rajagopal [40] show a relationship between supply chain
management practices and performance improvement.
These results have been nuanced by [45] who has show that
the impact of supply chain management practices on
performance is not as visible in smaller companies as in
larger ones. Moreover, in the past 20 years, this dimension
of performance and/or organizational competitiveness has
been analyzed under the angle of the resource-based view
(RBV). According to this theory, the competitiveness of any
organization is based on the resources it masters to develop
core competencies.
Sezen [46] mentioned Increasing the level of integration and
information sharing. , communication, and relationship
management among the members of a supply chain has
become a necessity for improving the effectiveness of
supply chains. Such cooperative behaviors of firms provide
rapid access to the required information, more sensitivity
towards the needs of the customers, and faster response
times than the competitors. many others studies showing
cooperative information sharing among supply chain
members improve competitiveness and effectiveness of
supply chains [47, 48, 7]
Based on the discussion of the literatures, the research
framework is shown in Figure1
Figure 1: The Study framework
H.1 supply chain management practices positively
related to the supply chain performance effectiveness.
Narasimhan and Kim [45] stated that supply chain efficiency
can only be realized through the various interaction of
SCMP. This view is supported by others studies [49] and
consensus emerged in that SCMP should shift from function
to integrative in order to value its performance effectiveness.
Specifically, [45] provided empirical evidence to show how
SCMP could potential enhance organization’s competitive
capabilities such as cost leadership, customer service, and
product differentiation. Recent studies [50, 51] also indicated
that the SCMP have a common goal of ultimately improving
organizational performance. For instance, Koh et al. [50]
identified that SCMP have significant direct positive impact
on organizational performance event in small and medium
enterprises. As a whole, previous literature forms a strong
consensus on the positive link between SCMP and SCP. From
the above hypothesis the sub hypotheses will be as follow:
H1.1 Supply chain integration positively related to the supply
chain performance effectiveness.
H1.2 Supply chain information sharing positively related to
the supply chain performance effectiveness
H1.3 Supply chain Customers management positively related
to the supply chain performance effectiveness
H1.4 Supply chain suppliers management positively related to
the supply chain performance effectiveness
H1.5 Supply chain responsiveness positively related to the
supply chain performance effectiveness
5. Research Methodology
5.1 Sampling
A framework for data collection and analysis was used based
on quantitative approach and non probability convenience
sample was used. In order to be consistent with the purpose of
this study, manufacturing corporations carrying out all the
value chain activities in a supply chain were sampled. The
data were collected through questionnaires sent to supply
chain managers or top-level executives in 150 large
manufacturing corporations among Sudanese listed in and
registered in ministry of industry The questionnaires were
hand delivered and transmitted by individual visit, and also
were sent by email to Sudanese industrial firms. The
respondents were mainly supply chain managers, but in cases
where a separate organizational entity for SCM did not exist,
response was requested from a top-level Executive who was
responsible for or well acquainted with supply chain policies
and corporate strategies of the firm in Sales, Production, or
Planning Department
5.2 Development of the survey instrument
A questionnaire was designed by reviewing relevant
theoretical and empirical studies such as [52, 14, 22]. Pilot
study was conducted by testing and pre-testing the
questionnaire with 30 randomly selected manufacturing
companies’ respondents. Feedbacks were incorporated and
questions were then revised. The final version of the
questionnaire consists of 59 closed questions.
The questionnaire of this study consisted of three main
sections, namely the profile of the company and
implementation of SCMP and specific questions designed to
measure the supply chain performance effectiveness
constructs. SCMP are measured by using five dimensions. All
items of SCMP are measured using Five -point scales ranging
from “strongly disagree” to “strongly agree, SCP were
adopted from [22]. The study used a five -point Likert scale
as a unit of measurement ranging from “more worse” to
Paper ID: 020141353
190
International Journal of Science and Research (IJSR)
ISSN (Online): 2319-7064
Impact Factor (2012): 3.358
Volume 3 Issue 8, August 2014
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
“more better Finally, ( 135) questionnaire were collected
after eliminating incomplete survey, there were 110
complete and useable responses, representing a response rate
of 80 percent
6. Data Analysis
Finally, after eliminating incomplete survey, there were 110
complete and useable responses, representing a response rate
of 80 percent. And the reliability statistic test conducted
6.1 Factor Analysis on supply chain management
practices Variables
In conducting factor analysis, this study followed
assumptions that recommended by Hair, Black and
Anderson, [53]. Firstly, there must be sufficient number of
statistically significant correlations in the matrix. Secondly,
Kaiser-Meyer-Olkin measure of sampling adequacy should be
at least 0.6. Thirdly, Bartlett’s test of spherecity should be
significant at 0.05. Fourthly, communalities of items should
be greater than 0.50. Fifthly, the minimum requirement of
factor loading 0.50 (since the sample size of this study 110
supply chain managers) based on a 0.05 significant level,
with value of cross loading exceeds 0.50. Also to provide a
simple structure column for interpretation, the factors were
subjected to Varimax rotation. Finally, eigenvalues should be
more than 1 for factor analysis extraction. Factor analysis was
done on the twenty-three items, which was used to measure
supply chain management practices constructs. Table 2
showed the summary of results of factor analysis on supply
chain management practices.
Table 2: Rotated Factor Loading for supply chain management practice
Items No: Components
1 2 3 4 5
Integration
Inte1
Searching for new way to integrate supply chain activities .799 .144 .110 .135 .141
Inte2
Improving the integration activities across your supply chain .736 .223 -.109 .242 .375
Inte5
Involving supply chain on your product service marketing plan .729 .275 .069 .158 .105
Inte4
Establishing more frequent contact with supply chain members .671 .075 .377 -.011
.150
Information sharing
Info1 Creating supply chain management teams to include different companies
.277 .748 .108 .034 -.037
Info4 segmenting customers based on service needs .095 .747 .066 -.007
.333
Info5 The company is working to create an appropriate information system .225 .740 .191 -.013
.401
Info2 use of informal information sharing .083 .734 .060 .199 -.119
Customers & delivery management
Supp1 On-time delivery directly to customers points of use .118 .155 .895 .037 .180
Supp2 On-time delivery directly to your firm's points of use .121 .131 .865 .222 .001
Suppliers management
Suppl5 participating in the sourcing decisions of suppliers .028 .112 .087 .821 .247
Suppl6
The company deals with a third party who specializes in business
logistics and supply .177 .064 .039 .798 -.102
Suppl4 aiding suppliers to increase their JIT capability .250 .008 .284 .565 .316
Speed of Responsiveness
Spe4 communicating customers' future strategic needs .181 .043 .056 .088 .817
Spe3 identifying additional supply chain needs .333 .206 .178 .192 .715
Eigenvalues
5.327 1.640 1.44 1.235 1.018
Percentage of Variance Explain
17.14
9
16.373 12.681 12.45 12.425
Total Variance Explained (%)
71.07
.794
670.587
Kaiser-Meyer-Olkin (KMO)
Bartlett’s Test of Spherecity
Variables loaded significantly on factor with Coefficient of
at least 0.5, * Items deleted due to high cross loading. As
shown in Table 1, factor loading of supply chain
management practices items on the five factors ranged from
0.565 to 0.895. Thus, this study found that supply chain
management practices in Sudanese industrial sector consists
of FIVE factors, namely; integration, information sharing
speed of Responsiveness, and suppliers management and
customers management
Table 3: Rotated Factor Loading supply chain performance
Effectiveness
Eff3
Warehousing costs
.144
.865 .180
Eff4
Inventory costs .231
.838 .105
Eff2
Transportation costs
.108
.813 .288
Eff5
Total logistic costs
.266
.795 .086
Eff1
Sales (SDG) .436
.509 .316
As shown in Table 4.6, factor loading of supply chain
performance effectiveness
Paper ID: 020141353
191
International Journal of Science and Research (IJSR)
ISSN (Online): 2319-7064
Impact Factor (2012): 3.358
Volume 3 Issue 8, August 2014
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
6.2 Reliability Analysis
To test reliability this study used Cronbach’s alpha as a
diagnostic measure, which assesses the consistency of entire
scale, since being the most widely used measure. According
to Hair, Black and Anderson. [53], the lower limit for
Cronbach’s alpha is 0.70, although it may decrease to 0.60
in exploratory research. While Nunnally [62] considered
Cronbach’s alpha values greater than 0.60 are to be taken as
reliable. The results of the reliability analysis summarized in
table (4)
Table 4: Cronbach’s Alpha
Construct
Variable
Number
of items
Cronbach’s
alpha
Supply
chain
management
practices
Integration
4
.810
Information sharing
4
.793
Customers
&delivery
management
2
.846
Suppliers &
management
2
.70
Speed of
responsiveness
2
.700
Supply chain
performance
effectiveness
5
.886
6.3 Correlation and Descriptive Analysis of supply chain
practices& performance effectiveness
6.3.1 Descriptive Analysis of supply chain management
practices
Table 5 shows the means of the five dimensions of supply
chain management practices: integration, information
sharing, Customers & management, Suppliers management,
speed of Responsiveness. The table reveals that the
Sudanese industrial companies emphasized more on speed
of communication (mean=3.7,) followed by supply chain
integration (mean=3.7), and then information sharing
(mean=3.5) and followed by Customers management
(mean=3.4) and the lowest components of supply chain
management practices is suppliers management (mean=3.3).
therefore those five dimensions were achieved average score
equal (3.52). Given that the scale used a 5-point scale
(1=strongly disagree, 5=strongly agree), it can be concluded
that Sudanese industrial companies are highly practicing of
supply chain management practices above the average mean.
The Table 5 also shows the means of the: supply chain
performance effectiveness. The table reveals that the
Sudanese industrial companies emphasized more on
effectiveness (mean=3.3. Given that the scale used a 5-point
scale it can be concluded that Sudanese industrial companies
have high supply chain performance effectiveness above the
average mean (3)
The correlation Table 5 presents the results of the
intercorrelation among the variables. The correlation
analysis was conducted to see the initial picture of the
interrelationships among the variables of the study.
Therefore, the importance of conducting correlation analysis
is to identify any potential problems associated with
multicollinearity [54]. Table 5. represents the correlation
matrix for the constructs operationalized in this study. These
bivariate correlations allow for preliminary inspection and
information regarding hypothesized relationships. In addition
to that, correlation matrix gives information regarding test for
the presence of multicollinearity.
Table 5. shows that integration is not significantly correlated
with supply chain performance effectiveness (r = .098, p–
value < 0.32), and information sharing not significantly
correlated with effectiveness (r = .105, p–value < 0.27), and
customers & management not significantly correlated with
supply chain performance effectiveness (r =.036, p–value <
0.70), suppliers management is not significantly correlated
with supply chain performance effectiveness (r =- .093, p–
value < 0.33), and Speed of responsiveness not significantly
correlated with supply chain performance effectiveness (r =
.044, p–value < 0.61)
Table 5: Person's Correlation Coefficient for All Variables
Variables
Mean
W1
W2
W3
W4
W5
X1
Supply chain
practice
3.71
1
W2
information
sharing
3.52
.476**
1
W3 customers
&delivery mgt
3.43
.345**
.317**
1
W3 suppliers
management
3.26
.413**
.245*
.306**
1
Speed of
responsiveness
3.72
.538**
.381**
.296**
.369**
1
X2
Effectiveness
3.3
0.098
0.105
0.03
-
0.094
0.044
1
** p < .01 * p < .05
The Relationship between supply chain management
practices and supply chain performance effectiveness
Similar analysis was conducted for the relationships between
supply chain management practices and effectiveness.
Table 5 shows the results of the hierarchical regression
equation testing the influence of the supply chain
management practices variables on effectiveness. The
supply chain management practices variables explained
48.725% of the variance in effectiveness. However, the result
shows that the model is significant. In addition the results
show that two of the five components of supply chain
management practices is a positive significantly influenced
supply chain effectiveness. The results showed that the
hypothesis was supported, i.e. there is a positive relationship
between supply chain management practices and
effectiveness. The results also showed that suppliers
management have the most significant effect on effectiveness
(ß=0.232, p<0.05), followed by integration (ß=0.181,
p<0.15), and information sharing (ß=0.046, p<0.68) followed
by customers management (ß=-0.022, p<0.84), and speed of
Responsiveness (ß=0.068, p<0.56). These results give support
to hypotheses H1.2a (suppliers management and
effectiveness), H1.2b (integration and effectiveness), and
H1.2c (customer management and effectiveness), H1.2d
(speed of Responsiveness and effectiveness). Therefore, these
results provide support for the assertion that the effort to
Paper ID: 020141353
192
International Journal of Science and Research (IJSR)
ISSN (Online): 2319-7064
Impact Factor (2012): 3.358
Volume 3 Issue 8, August 2014
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
become supply chain management practices does lead to
the creation of supply chain effectiveness.
Table 6: Multiple Regressions: supply chain management
practices Variables, and supply chain effectiveness
(Beta coefficient)
Variables Effectiveness
Supplier s management .232**
Integration .181
Information sharing .046
Customers management .021
Speed of responsiveness .068
R² .069
Adjusted R² .022
∆ R² .069
F change 1.475 ***
Note: Level of significant: *p<0.10, **p<0.05,***p<0.000
7. Discussion and Conclusion
From the results achieved by data analysis one of the
interesting finding is that the suppliers management
practices have influence on supply chain performance
effectiveness. The managing of suppliers is considered one
of the factors that affect the total cost of the supply chain
management and therefore suppliers could help to reduce the
cost and thus may contribute to improve performance
through effectiveness. Studies related to supply chain
practices in the manufacturing and automotive sector find a
significant relationship between suppliers and manufacturers
competitive priorities and practices [56]. Moreover, other
results reveal that integration has influence on supply chain
effectiveness. Recent years have seen growth in the
importance of integration suppliers, manufacturers and
customers [56] Effective integration of suppliers into supply
chains serves as a key factor to some companies to gain
competitive advantage Also another results show that there
are no relationship between (integration, information
sharing, speed of Responsiveness , customer management )
and effectiveness, Information sharing sometimes may not
have influence on supply chain performance as a result
companies are uncertain or doubtful that information will be
used unfairly to their disadvantages and this may cause a
divergent interest and opportunistic behavior of supply chain
partners. This informational asymmetry has potential
negative effect on the supply chain performance. Choy, et.al
[61] mention that high cost of transaction will be involved if
information cannot be communicated effectively with
partners in supply chain that may not help to improve supply
chain performance through effectiveness. in addition,
integration sometimes the high level of integration between
organization may reduce their ability and willingness to
make rapid changes in trading relationship that may reduce
the effect of integration on effectiveness of supply chain
,according to the result that customer relationship
management has no effect on supply chain effectiveness, the
customers management may not directly have effect on
supply chain effectiveness due to the supply chain
implementation complexity that (supply chain) could only
be implemented through many elements: for example the
supply chain processes, the supply chain network structure,
and the management components. These elements may
affect the degree of supply chain performance effectiveness
through the customer management practice, which in turn
affects the overall effectiveness of supply chain performance
[57 ]
This study has provided empirical justification for a
framework that identifies five constructs of supply chain
management practices and describes the relationship among
SCMP and supply chain performance effectiveness within the
context of Sudanese industrial sector. Previous studies
supporting the importance of SCMP mostly used and relate
SCMP to organizational performance and not with SCP. The
major contribution of the present study is the development of
a dimensions of SCMP constructs through comprehensive
perspectives and, accordingly, examining its impact on SCP.
Based on a survey data of 110 manufacturing firms, this study
carries more weight especially for generalization purpose due
to the limited quantitative approach in the extant literatures.
As a whole, effective SCMP have important implications for
SCP.
Among the limitations of this study is the use of only one
respondent per company. Also, this study depends on a
questionnaire survey at one point in time from a
manufacturing sector. therefore Future research should,
endeavor to collect data from multiple members across the
supply chain, including semi structured interviews. as well
Future research should develop SCM practices dimensions,
and focus on measuring new dimensions of supply chain
performance effectiveness and future scope it’s better to
focusing on the factors effect on effectiveness of supply
chain.
This study offers a number of managerial implications. First,
it provides to the SCM managers with Appropriate formula
for evaluating the effectiveness of the supply chain
performance moreover a new dimensions of supply chain
management practices also developed . Second, the results
also indicates that supply chain management practices might
directly influence on supply chain performance effectiveness,
In the long term the success of Sudanese industrial firms is
heavily may dependent on its supply chain practices, and
Finally the theoretical contributing of the study that its
provide to scholars new avenues for future research, and as
well as extracting new dimension, and using a triangulation
methodology
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Author Profile
Dr. Siddig balal Ibrahim is Assistant Professor in Sudan
University of Science and Technology College of Business Studies,
Sudan. He earned his Ph.D from USM in Malaysia
Abdelsalam Adam Hamid is lecturer in Sudan University of
Science and Technology College of Business Studies, Sudan . He
earned his master degree from Sudan University, Sudan
Paper ID: 020141353
195
