The Impact of Supply Chain Management (SCM) Practices on Firm Performance (FP) in the Manufacturing Industry of Pakistan

Abstract

Productive and effective supply chain management (SCM) practices are essential to achieve maximum performance. This quantitative study investigated the impact of SCM practices on firm performance (FP) in Pakistan's manufacturing industry. Data was collected through questionnaire survey from respondents of supply chain area in manufacturing firms. Regression assumptions tests were conducted to check application of Regression model. Multiple Linear Regression analysis techniques were used for testing the research model to verify causal relationship of variables. Mediation analysis was carried out by conducting Hierarchical Linear Regression Technique. The IBM SPSS statistics software was used to check the relationships between the variable. Results show that these models as a whole as well as and the variables were significant. Further, mediation analysis was also conducted to test mediator variable with hierarchical regression analysis under bootstrap approach. Overall results confirm the mediator role of mediator variable. Recommendations have also been provided for optimization of SCM Practices through Customer Satisfaction to enhance Firm Performance.