Achieving Firm Financial Performance Through the Just-In-Time Supply Chain, Quality Management, and Supply Chain Integration: The Moderating Role of IT Advancement

Abstract

Global competition and uncertainties call for manufacturers to adopt advanced supply chain practices that help them achieve competitive advantages in a volatile business environment. In this essence, the current research examines how supply chain integration, just-in-time practice, and quality management boost a firm operational and financial performance during a pandemic crisis like COVID-19. Similarly, this study examines the moderating effect of IT advancement on the relationship between a firm operational and financial performance. The sample size of this study is assessed with a priori power analysis. Data were collected from employees working in manufacturing firms, including construction equipment, transportation, electronic products, engineering, chemical, pharmaceutical, and healthcare manufacturers. For empirical analysis, 380 responses were estimated with a structural equation modeling approach. Constructs validity and reliability are tested in the measurement model. Empirical findings revealed that factors such as internal integration, process integration, product integration, just-in-time, and quality management collectively explained R^2 75.4 % variance in firm operational performance. In addition, effect size analysis 〖 f〗^2 shows that product integration has the highest importance in determining a firm operational performance. The research model has shown substantial predictive power Q^2 54.2% to predict firm operational performance. The moderating impact of IT advancement is established and revealed that IT advancement in the supply chain will strengthen the relationship between the firm’s operational and financial performance. Theoretically, this research has developed an integrated supply chain model that combines supply chain integration factors, just-in-time, quality management, and IT advancement to investigate the firm’s operational performance. To practice, this study suggests that policymakers should concentrate on process integration, just-in-time supply chain strategy, and IT advancement, which boosts the firm’s operational and financial performance. This study is unique as it discloses several useful findings which would help manufacturers deal with an unprecedented situation like the COVID-19 pandemic.