An investigation of the relationship between supply chain management practices (SCMP) on supply chain performance measurement (SCPM) of Indian retail chain using SEM

Abstract

Purpose The purpose of this paper is to investigate the relationship between two major constructs (supply chain management practices (SCMP) and supply chain performance measures), which determines the efficiency and efficacy of retail-supply chain management, using a rigorous empirical method to validate the instrument scale for measuring the validity and reliability of the identified constructs. Additionally, the paper further tests the relationship between SCMP and supply chain performance measures using structural equation modeling (SEM). Design/methodology/approach Data were compiled and collected from 213 operations and supply chain (SC) heads from leading retail stores in India. Confirmatory factor analysis was used to test the validity of the proposed measurement scale and the relationship is tested using SEM. Findings The results of the research will help the decision makers in the SC/procurement field to understand the importance of the association between SCMP and supply chain performance measures. Statistical tests show that the implementation of SCMP are associated with supply chain performance measures, which leads to overall improvements; moreover, there is a statistically significant association between the five SCMP and eight SCPM. Research limitations/implications This research is also needed to provide more understanding about the SCMP along with the supply chain performance measures and the positive association among them. Overall, this research provides an additional insight into the growing field of the relationships between SCMP and SCPM. Clearly, the field has ample space to grow in terms of research and practice. Originality/value This research paper contributes to the literature on supply chain performance measurement.