Share:


The influence of supply chain management practices on supply chain performance: the moderating role of information quality

    Jehad Bani Hani   Affiliation

Abstract

Purpose – The main aim of this investigation is to introduce a framework for combining information quality concerning with contextual and representational relevance, and intrinsic accuracy in supply chain management practices to develop supply chain performance in Saudi companies.


Research methodology – Inferential technique used to examine the interplay between constructs of the study. SEM was run in order to assess and estimate the causal relationship among variables.


Findings – The significant effect of information quality on SCP as well as the significant effect of SCMPs on SCP. Furthermore, it was found that the information quality could significantly moderate the interplay between SCP and SCMPs.


Research limitations – This study conducted on 150 Saudi manufacturing companies during the year 2021, in future, the findings can be adapted for other sectors of the Saudi economy.


Practical implications – This study has implications for the industrial managers and key personnel. The study provides strong evidence revealing that higher level of integration between SCMPs and quality of information can lead to enhanced supply chain performance.so the proposed model can be used in the practical activities of service sectors In the future; it is possible to change and/ or add key variables and further expand the field of use of the model.


Originality/Value – The study contributed in determining main practices of supply Chan management in industrial sector of Saudi Arabia considering their influence on supply chain performance, as well as this study contributed in showing the engagement of information quality in supply chain management.

Keyword : supply chain management practices, supply chain management, information quality, supply chain performance, Saudi manufacturing companies

How to Cite
Bani Hani, J. (2022). The influence of supply chain management practices on supply chain performance: the moderating role of information quality. Business, Management and Economics Engineering, 20(1), 152–171. https://doi.org/10.3846/bmee.2022.16597
Published in Issue
May 11, 2022
Abstract Views
1495
PDF Downloads
1046
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Abdulameer, S. S., & Yaacob, N. A. (2020). The moderating role of information sharing on the relationship between lean supply chain and supply chain performance: A conceptual framework. International Journal of Supply Chain Management, 9(1), 411–419.

Abdallah, A. B., Obeidat, B. Y., & Aqqad, N. O. (2014). The impact of supply chain management practices on supply chain performance in Jordan: The moderating effect of competitive intensity. International Business Research, 7(3), 13–27. https://doi.org/10.5539/ibr.v7n3p13

Acar, A. Z., & Uzunlar, M. B. (2014). The effects of process development and information technology on time-based supply chain performance. Procedia - Social and Behavioral Sciences, 150, 744–753. https://doi.org/10.1016/j.sbspro.2014.09.044

Afshan, N. S., Chatterjee, S., & Chhetri, P. (2018). Impact of information technology and relational aspect on supply chain collaboration leading to financial performance: A study in Indian context. Benchmarking: An International Journal, 25(7), 2496–2511. https://doi.org/10.1108/BIJ-09-2016-0142

Ahi, P., & Searcy, C. (2015). Measuring social issues in sustainable supply chains. Measuring Business Excellence, 19(1), 33–45. https://doi.org/10.1108/MBE-11-2014-0041

Alahmad, Y. (2021). The relationship between supply chain management practices and supply chain performance in Saudi Arabian firms. American Journal of Industrial and Business Management, 11(1), 42–59. https://doi.org/10.4236/ajibm.2021.111004

Alam, A., Bagchi, P., Kim, B., Mitra, S., & Seabra, F. (2014). The mediating effect of logistics integration on supply chain performance: A multi-country study. The International Journal of Logistics Management, 25(3), 553–580. https://doi.org/10.1108/IJLM-05-2013-0050

Al-Shboul, M. D., Barber, K. D., Garza-Reyes, J. A., Kumar, V., & Abdi, R. (2017). The effect of supply chain management practices on supply chain and manufacturing firms’ performance. Journal of Manufacturing Technology Management, 28(1). https://doi.org/10.1108/JMTM-11-2016-0154

Alvarado, U. Y., & Kotzab, H. (2001). Supply chain management: The integration of logistics in marketing. Industrial Marketing Management, 30(2), 183–198. https://doi.org/10.1016/S0019-8501(00)00142-5

Anand, N., & Grover, N. (2015). Measuring retail supply chain performance: Theoretical model using key performance indicators (KPIs). Benchmarking: An International Journal, 22(1), 135–166. https://doi.org/10.1108/BIJ-05-2012-0034

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423. https://doi.org/10.1037/0033-2909.103.3.411

Kumar, A., & Kushwaha, G. S. (2018). Supply cain management practices and operational performance of fair price shops in India: An empirical study. LogForum, 14(1), 85–99. https://doi.org/10.17270/J.LOG.2018.237

Azemi, N. A., Zaidi, H., & Hussin, N. (2017). Quality in organization for better decision-making. International Journal of Academic Research in Business and Social Sciences, 7(12), 429–437. https://doi.org/10.6007/IJARBSS/v7-i12/3624

Bagozzi, R. P., & Yi, Y. (2012). Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science, 40(1), 8–34. https://doi.org/10.1007/s11747-011-0278-x

Bani Hani, J., & Awad, H. (2017). A broad-spectrum orientation of business innovation: An empirical investigation using managers’ attitudes toward the effectiveness of innovation measurement indicators in Saudi private hospitals: The case of private hospitals in Jeddah. International Journal of Innovative Research in Engineering & Management, 4(4), 729–734. https://doi.org/10.21276/ijirem.2017.4.4.11

Bani-Hani, J., Al-Ahmad, N., & Alnajjar, F. (2009). The impact of management information systems on organizations performance: Field study at Jordanian universities. Review of Business Research, 9(2), 127–138.

Bani Hani, J. (2021). The moderating role of lean operations between supply chain integration and operational performance in Saudi manufacturing organizations. Uncertain Supply Chain Management, 9, 169–178. https://doi.org/10.5267/j.uscm.2020.10.004

Banomyong, R., & Supatn, N. (2011). Developing a supply chain performance tool for SMEs in Thailand. Supply Chain Management: An International Journal, 16(1), 20–31. https://doi.org/10.1108/13598541111103476

Barros, C. P. (2006). Efficiency measurement among hypermarkets and supermarkets and the identification of the efficiency drivers. International Journal of Retail & Distribution Management, 2, 135–154. https://doi.org/10.1108/09590550610649795

Basu, G., Jeyasingam, J., Habib, M., Letchmana, U., & Radhakrishnan, R. (2017). The impact of supply chain management practices on the performance of private universities in Malaysia. International Journal of Supply Chain Management, 6(3), 22–35.

Beamon, B. (1999). Measuring supply chain performance. International Journal of Operations & Production Management, 19(3), 7–12. https://doi.org/10.1108/01443579910249714

Bentler, P. M. (1990). Comparative fit indexes in structural models. Psychological Bulletin, 107, 238–246. https://doi.org/10.1037/0033-2909.107.2.238

Cai, J., Liu, X., Xiao, Z., & Liu, J. (2009). Improving supply chain performance management: A systematic approach to analyzing iterative KPI accomplishment. Decision. Support System, 46, 512–521. https://doi.org/10.1016/j.dss.2008.09.004

Chan, W., & Lam, C. (2011). Modeling supply chain performance and stability. Industrial Management and Data Systems, 111(8), 1323–1354. https://doi.org/10.1108/02635571111171649

Cheung, G. W., & Rensvold, R. B. (2002). Evaluating goodness-of-fit indexes for testing measurement invariance. Structural Equation Modeling, 9, 233–255. https://doi.org/10.1207/S15328007SEM0902_5

Christopher, M. (2000). The agile supply chain: Competing in volatile markets. Industrial Marketing Management, 29(1), 37–44. https://doi.org/10.1016/S0019-8501(99)00110-8

Choy, K., Lee, W., & Lo, V. (2004). An enterprise collaborative management system – a case study of supplier relationship management. Journal of Enterprise Information Management, 17(3), 191–207. https://doi.org/10.1108/17410390410531443

Cigolini, R., Cozzi, M., & Perona, M. (2004). A new framework for supply chain management. International Journal of Operations & Production Management, 24, 7–41. https://doi.org/10.1108/01443570410510979

Cook, L. S., Heiser, D. R., & Sengupta, K. (2011). The moderating effect of supply chain role on the relationship between supply chain practices and performance. International Journal of Physical Distribution and Logistics Management, 41(2), 104–134. https://doi.org/10.1108/09600031111118521

Croom, S., Romano, P., & Giannakis, M. (2000). Supply chain management: an analytical framework for critical literature review. European Journal of Purchasing & Supply Management, 6, 67–83. https://doi.org/10.1016/S0969-7012(99)00030-1

Diakopoulos, N., & Essa, I. (2008, November 28–30). An annotation model for making sense of information quality in online video. In ICPW ‘08: Proceedings of the 3rd International Conference on the Pragmatic Web: Innovating the Interactive (pp. 31–34). https://doi.org/10.1145/1479190.1479195

Dweekat, A. J., Hwang, G., & Park, J. (2017). A supply chain performance measurement approach using the internet of things: Toward more practical SCPMS. Industrial Management & Data Systems, 117(2), 267–286. https://doi.org/10.1108/IMDS-03-2016-0096

Embury, S. M., Missier, P., Sampaio, S., Greenwood, R. M., & Preece, A. D. (2009). Incorporating domain-specific information quality constraints into database queries. Journal of Data and Information Quality, 1(2), 1–11. https://doi.org/10.1145/1577840.1577846

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104

Gandhi, A. V., Shaikh, A., & Sheorey, P. A. (2017). Impact of supply chain management practices on firm performance. International Journal of Retail & Distribution Management, 45, 366–384. https://doi.org/10.1108/IJRDM-06-2015-0076

Gefen, D., Straub, D., & Boudreau, M. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4. https://doi.org/10.17705/1CAIS.00407

Goldman, S., Nagel, R., & Preiss, K. (1995). Agile competitors and virtual organizations: Strategies for enriching the customer (1st ed.). Wiley.

Green Jr, K. W., Whitten, D., & Inman, R. A. (2008). The impact of logistics performance on organizational performance in a supply chain context. Supply Chain Management: An International Journal, 13(4), 317–327. https://doi.org/10.1108/13598540810882206

Green, K. W., McGaughey, R., & Casey, K. M. (2006). Does supply chain management strategy mediate the association between market orientation and organizational performance? Supply Chain Management, 11, 407–414. https://doi.org/10.1108/13598540610682426

Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (2013). Multivariate data analysis (7th ed.). Pearson.

Hallavo, V. (2015). Superior performance through supply chain fit: a synthesis. Supply Chain Management: An International Journal, 20(1), 71–82. https://doi.org/10.1108/SCM-05-2014-0167

Harland, C., Lamming, R., & Cousins, P. (1999). Developing the concept of supply strategy. International Journal of Operations & Production Management, 19(7), 650–673. https://doi.org/10.1108/01443579910278910

Huang, K.-T., Lee, Y. W., & Wang, R. Y. (1999). Quality information and knowledge. Prentice-Hall.

Ibrahim, S. B., & Hamid, A. A. (2014). Supply chain management practices and supply chain performance effectiveness. International Journal of Science and Research (IJSR), 3(8), 187–195.

Kannan, V. R., & Tan, K. C. (2004). Supplier alliances: Differences in attitudes to supplier and quality management of adopters and non‐adopters. Supply Chain Management: An International Journal, 9(4), 279–286. https://doi.org/10.1108/13598540410550028

Karimi, E., & Rafiee, M. (2014). Analyzing the impact of supply chain management practices on organizational performance through competitive priorities. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 1–15. https://doi.org/10.6007/IJARAFMS/v4-i1/503

Kim, M., & Chai, S. (2017). The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective. International Journal of Production Economics, 187, 42–52. https://doi.org/10.1016/j.ijpe.2017.02.007

Kim, S. (2006). Effects of supply chain management practices, integration and competition on performance. Supply Chain Management: An International Journal, 11(3), 241–248. https://doi.org/10.1108/13598540610662149

Kinney, W. R. Jr. (2000). Information quality assurance and internal control. McGraw Hill.

Koh, L. C. S., Demirbag, M., Bayraktar, E., Tatoglu, E., & Zaim, S. (2007). The impact of supply chain management practices on performance of SMEs. Industrial Management and Data Systems, 107(1), 103–124. https://doi.org/10.1108/02635570710719089

Krajewski, L. J., Malhotra, N. K., & Ritzman, L. P. (2019). Operations management: Processes and supply chains (12th ed.). Pearson.

Kumar, A., & Kushwaha, G. (2018). Supply chain management practices and operational performance of fair price shops in India: An empirical study. LogForum, 14(1), 85–99. https://doi.org/10.17270/J.LOG.2018.237

Laudon, K., & Laudon, J. (2021). Essentials of MIS (14th ed.). Pearson.

Lee, C., Kwon, I., & Severance, D. (2007). Relationship between supply chain performance and degree of linkage among supplier, internal integration, and customer. Supply Chain Management: An International Journal, 12(6), 444–452. https://doi.org/10.1108/13598540710826371

Lee, A., & Levy, Y. (2014). The effect of information quality on trust in e-government systems’ transformation. Transforming Government: People, Process and Policy, 8(1), 76–100. https://doi.org/10.1108/TG-10-2012-0011

Li, S., & Lin, B. (2006). Accessing information sharing and information quality in supply chain management. Decision Support Systems, 42(3), 1641–1656. https://doi.org/10.1016/j.dss.2006.02.011

Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Rao, S. S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107–124. https://doi.org/10.1016/j.omega.2004.08.002

Li, S., Rao, S. S., Ragu-Nathan, T. S., & Ragu-Nathan, B. (2005). Development and validation of a measurement instrument for studying supply chain management practices. Journal of Operations Management, 23(6), 618–641. https://doi.org/10.1016/j.jom.2005.01.002

Lysons, K., & Farrington, B. (2020). Procurement and supply chain management (10th ed.). Pearson.

Marinagi, C., Trivellas, P., & Reklitis, P. (2015). Information quality and supply chain performance: The mediating role of information sharing. Procedia - Social and Behavioral Sciences, 175, 473–479. https://doi.org/10.1016/j.sbspro.2015.01.1225

Marsh, H. W., Balla, J. R., & McDonald, R. P. (1988). Goodness-of-fit indexes in confirmatory factor analysis: The effect of sample size. Psychological Bulletin, 103, 391–410. https://doi.org/10.1037/0033-2909.103.3.391

Min, S., & Mentzer, J. T. (2004). Developing and measuring supply chain management concepts. Journal of Business Logistics, 25, 63–99. https://doi.org/10.1002/j.2158-1592.2004.tb00170.x

Nunnally, J. C., & Berstein, I. H. (1994). Psychometric theory. McGraw Hill.

Ortiz, A. L., & Gomez, M. (2017). The supply chain management and the supply chain responsiveness in the competitiveness of the agrofood sector: An econometric analysis. International Journal of Industrial and Systems Engineering, 11(17), 2818–2821.

Pittiglio, Rabin, Todd, & McGrath. (1994). Integrated supply chain performance measurement: a multi-industry consortium recommendation, Westin Ma. PRTM Consulting, Massachusetts.

Podsakoff, P. M., MacKenzie, S. B., Lee, J., & Podsakoff, N. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879

Prathiba, S. (2020). Can supply chain management practices influence customer satisfaction and loyalty? Journal of Supply Chain Management Systems, 9(1).

Rahi, S. (2021). Investigating the role of employee psychological well-being and psychological empowerment with relation to work engagement and sustainable employability. International Journal of Ethics and Systems. https://doi.org/10.1108/IJOES-12-2020-0200

Rahi, S., Ghani, M. A., & Ngah, A. H. (2020). Factors propelling the adoption of internet banking: The role of e-customer service, website design, brand image and customer satisfaction. International Journal of Business Information Systems, 33(4), 549–569. https://doi.org/10.1504/ijbis.2020.105870

Rahi, S., & Abd. Ghani, M. (2019). Integration of expectation confirmation theory and self-determination theory in internet banking continuance intention. Journal of Science and Technology Policy Management, 10(3), 533–550. https://doi.org/10.1108/JSTPM-06-2018-0057

Rahi, S., Ghani, M., & Ngah, A. (2018). A structural equation model for evaluating user’s intention to adopt internet banking and intention to recommend technology. Accounting, 4(4), 139–152. https://doi.org/10.5267/j.ac.2018.3.002

Rahi, S. (2017). Research design and methods: A systematic review of research paradigms, sampling issues and instruments development. International Journal of Economics & Management Sciences, 6(2), 1–5. https://doi.org/10.4172/2162-6359.1000403

Rieh, S. Y. (2002). Judgment of information quality and cognitive authority in the web. Journal of the American Society for Information Science and Technology, 53(2), 145–161. https://doi.org/10.1002/asi.10017

Ringle, C. M., da Silva, D., & Bido, D. (2015). Structural equation modeling with sampling. Revista Brasileira de Marketing, 13(2), 56–73. https://doi.org/10.5585/remark.v13i2.2717

Sahin, H., & Topal, B. (2019). Examination of effect of information sharing on businesses performance in the supply chain process. International Journal of Production Research, 57(3), 1–14. https://doi.org/10.1080/00207543.2018.1484954

Saleheen, F., Habib, M., & Hanafi, Z. (2018). Supply chain performance measurement model: A literature review. International Journal of Supply Chain Management, 7(3), 70–78.

Saragih, J., Tarigan, A., Pratama, I., Wardati, J., & Silalahi, E. F. (2020). The impact of total quality management, supply chain management practices, and operations capability on firm performance. Polish Journal of Management Studies, 21(2). https://doi.org/10.17512/pjms.2020.21.2.27

Sekaran, U. (2010). Research methods for business: A skill-building approach (4 ed.). John Wiley & Sons.

Shepherd, C., & Günter, H. (2006). Measuring supply chain performance: Current research and future directions. International Journal of Productivity and Performance Management, 55, 242–258. https://doi.org/10.1108/17410400610653219

Slack, N., & Brandon-Jones, A. (2019). Operations management (9th ed.). Pearson.

Spekman, R., Kamauff Richey, J., & Myhr, N. (1998). An empirical investigation into supply management: A perspective on partnership. Supply Chain Management, 3(2), 53–67. https://doi.org/10.1108/13598549810215379

Stevens, G. (1990). Integrating the supply chain. International Journal of Physical Distribution and Materials Management, 19(8), 3–8. https://doi.org/10.1108/EUM0000000000329

Subburaj, M., Ramesh Babu, T., & Suresh Subramonian, B. (2015). a study on strengthening the operational efficiency of dairy supply chain in Tamilnadu, India. Procedia - Social and Behavioral Sciences, 189, 285–291. https://doi.org/10.1016/j.sbspro.2015.03.224

Sukati, I., Hamid, A. B., Baharum, R., & Yussoff, R. (2012). The study of supply chain management strategy and practices on supply chain performance. Procedia Social and Behavioral Sciences, (40), 225–233. https://doi.org/10.1016/j.sbspro.2012.03.185

Sundram, V. P. K., Chandran, V. G. R., & Bhatti, M. A. (2016). Supply chain practices and performance: The indirect effects of supply chain integration. Benchmarking: An International Journal, 23(6), 1445–1471. https://doi.org/10.1108/BIJ-03-2015-0023

Tan, K. C., Kannan, V. R., & Leong, G. K. (2009) Supply chain management practices as a mediator of the relationship between operations capability and firm performance. International Journal of Production Research, 47(3), 835–855. https://doi.org/10.1080/00207540701452142

Tan, K. C. (2002). Supply chain management: Practices, concerns, and performance issues. Journal of Supply Chain Management, 38(1), 42–53.

Thatte, A. A., Rao, S. S., & Ragu-Nathan, T. S. (2013). Impact of SCM practices of a firm on supply chain responsiveness and competitive advantage of a firm. Journal of Applied Business Research (JABR), 29(2), 499–530. https://doi.org/10.19030/jabr.v29i2.7653

Thatte, A. A. (2007). Competitive advantage of a firm through supply chain responsiveness and SCM practices (Publication No. 3264621) [Doctoral dissertation, The University of Toledo]. ProQuest Information and Learning Company.

Utami, C. W., Susanto, H., Septina, F., Sumaji, U. M. P., & Pratama, I. (2019). Effect of supply chain management practices on financial and economic sustainable performance of Indonesian SMEs. International Journal of Supply Chain Management, 8(5), 523–535.

WH Ip., W., Chan, S., & Lam, C. (2011). Modeling supply chain performance and stability.Industrial Management and Data Systems, 111(8), 1332–1354. https://doi.org/10.1108/02635571111171649

Wibowo, M. A., & Sholeh, M. N. (2015). The analysis of supply chain performance measurement at construction project. Procedia Engineering, 125, 25–31. https://doi.org/10.1016/j.proeng.2015.11.005

Zhou, H., & Benton, Jr., W. C. (2007). Supply chain practice and information sharing. Journal of Operations Management, 25(6), 1348–1365. https://doi.org/10.1016/j.jom.2007.01.009