Effectiveness (Ineffectiveness) of Supply Chain Management: Evidence from Manufacturing Industry in Pakistan

Abstract

The current study investigates the impact of lean supply chain management system (LSCM) on supply chain performance (SCP) and market performance (MP) in the manufacturing companies of Pakistan. Moreover, the indirect effect of whole lean supply chain management system (LSCM) on market performance (MP) via supply chain performance (SCP) as mediating variable has also been examined. Five practices are used together to form lean supply chain management system (LSCM) including flow of information, just in time, supplier relationship, customer relationship, waste reduction. Similarly, two practices for supply chain performance (SCP) are used in this study; flexibility and efficiency. For market performance (MP) five parameters are used: customer satisfaction, sales, market share, overall competitive position and profitability. This study is quantitative in nature and based on regression analysis technique. The study collected the data from 100 private and public limited manufacturing companies of Pakistan. The findings revealed that lean supply chain management (LSCM) has a positive significant impact on supply chain performance (SCP) and market performance (MP). In addition, there is significant mediation impact of supply chain performance (SCP) on the relationship between lean supply chain management system (LSCM) and market performance (MP). In the end, findings are discussed in light of existing literature which offers some valuable insights for both academic researchers as well as practitioners.