Supply Chain Management Maturity and Business Performance: The Balanced Scorecard Perspective

Abstract

This paper analyzes the connection between supply chain management maturity (SCMM) and business performance in light of the balanced scorecard (BSC) framework. The goal is to explore the relationship between SCMM and business performance from the financial and customer, innovation and learning, and internal processes perspectives. Industry characteristics (technological dynamism and the level of state support) are examined to determine their moderating effects. The survey was carried out on a sample of organizations from Bosnia and Herzegovina to test if the BSC approach can be a relevant framework for assessing the effects of SCMM on performance, and whether, as in many countries’ political legacies, the role of the government is significant in this relation. PLS-SEM was used to test the proposed hypotheses. The obtained research results confirm a positive relationship between SCMM and business performance from the BSC perspective. This relation is strengthened when an organization operates in an industry with higher technological dynamism. Interestingly, the results confirm that the level of state support does not influence the contribution of SCMM to business performance. This paper provides a more comprehensive view of the role of SCMM and an additional understanding of its contribution to multiple perspectives of business performance. Furthermore, the relevance of industry characteristics for SCMM and business performance has been illustrated by testing the moderation effect of technological dynamism and the level of state support.