The role of supply chain management in improving performance of Jordanian small and medium enterprises

Abstract

Supply chain management practices are always helpful for multinational enterprises in increasing their growth. However, there has always remained an open debate about which practices are helpful for small and medium enterprises (SMEs). Therefore, this study has examined the influence of supply chain management practices on the performance of SMEs. Moreover, it has examined how the moderation of supply chain ecocentricity and innovation capabilities strengthens or weakens the relationship between supply chain management practices and SMEs’ performance. The quantitative study involved 352 SME managers as they can provide the relevant information and possess complete knowledge of management practices. The data were gathered via a questionnaire, and the responses were analyzed using IBM SPSS 28 and IBM AMOS. The results show that SMEs’ performance is linked to supply chain management practices (β = 0.544; P < .001), and this linkage is further strengthened by supply chain ecocentricity (R2 change = 0. 082***, F-Statistics = 47.18) and innovation capabilities (R2 change = 0.061***, F-Statistics = 39.74). SMEs can enhance their performance by efficiently incorporating supply chain management practices and developing innovation capabilities and supply chain ecocentricity. AcknowledgmentsThis study is funded by Al Hussein Bin Talal University, Ma’an, Jordan, No. 125/2023.