Pharmaceutical Supply Chain Management Practices and Organizational Performance

Abstract

The purpose of this paper is to use empirical data to examine the effect of supply chain management practices on organizational performance of pharmaceutical firms in a developing country. The conceptual model was based on supply chain management practices. Purposive sampling was used to gather data from cross section of pharmaceutical firms. Partial least square (PLS) structural equation modelling (SEM) approach was used to test the relationship among the constructs. The results show a strong statistically significant positive relationship between supply chain management practice and organizational performance. Supply chain performance was used as a mediating variable, but the result was inconsequential, and it had no effect on the relationship between supply chain management practices and organizational performance.