Achieving higher supply chain performance via business process orientation

Abstract

Purpose The purpose of this paper is to explore the ways in which various dimensions of supply chain performance (SCP) can be improved through increased levels of process orientation across different core operational processes. This study aims to provide simple guidelines which are practical for business managers. Design/methodology/approach A conceptual model was developed based on the literature review and it was tested using an empirical study. Various factor analysis techniques are used to construct different components of the research model and test the hypotheses. Findings This study provides two main categories of findings. First, based on the exploratory analysis several constructs were developed. Second, using structural equation modeling the relationships among the constructs were examined. The findings suggest that managers need to take a targeted approach in increasing the levels of process orientation in order to achieve particular SCP goals. Research limitations/implications The result of this study is not indented to be generalized to all businesses; however, the methodology is flexible enough to be utilized in different industries and business scenarios. Practical implications The present study provides specific recommendations for business managers seeking to enhance various aspects of their organizational SCP. The research model can be used for future empirical as well as case studies. Originality/value This is the first comprehensive empirical study that separately measures business process orientation with respect to four core supply chain processes (planning, sourcing, making, and delivering) and assesses the impact of each core process on various dimensions of supply chain performance.