Impact of supply chain performance on organizational performance mediated by customer satisfaction: a study of dairy industry

Abstract

PurposeThe aim of this study is to empirically test the relationship between supply chain performance and organizational performance mediated by customer satisfaction.Design/methodology/approachRespondents of this study include all the supply chain stakeholders, managers working in the dairy industry, bulk milk chillers/coolers (BMCs), farmer producers, wholesalers, transporters, retailers and consumers. The final sample has 67 firms and their forward and backward linkages, taking the total sample size to 1,139. Mediation analysis was performed using SPSS AMOS v26 to analyze the impact of supply chain performance on organizational performance mediated by customer satisfaction.FindingsThe findings of this study reveal that supply chain performance positively impacts organizational performance, and customer satisfaction partially mediates the relationship between them.Research limitations/implicationsThis study provides an opportunity for future researchers to test this model in different locations and different industries, incorporating other mediating variables, such as risk, coordination, supply chain orientation etc., as antecedents and operational, economic and marketing performance as consequences.Practical implicationsThe study suggests that enhanced organizational performance requires supply chain management to be treated as a strategic function. Managers working at the processing/manufacturing level must focus on improving supply chain performance indicators through collaboration with supply chain stakeholders.Originality/valueThe present study adds to the existing literature by adopting a new supply chain performance measurement approach. The current literature has focused primarily on supply chain practices to study their impact on customer satisfaction and organizational performance. In contrast, the present study demonstrates how improvement in supply chain performance can enhance organizational performance through customer satisfaction.