SUBJECT: MARKETING RESEARCH

MARKETING
RESEARCH REPORT

Title Research: Impact of supply chain management on organisational performance.

SUBMITTED BY
AMIR ALI KHAN
F20BBA202

BBA LEADING TO MBA

Feb 05 2023

PRESENTED TO
DR, HASSAAN AHMED
Assistant Professor

1
Department: Business Administration Management

TABLE OF CONTENTS
INTRODUCTION________________________________________________________________________________________3

BACKGROUND STUDY_____________________________________________________________________________3-5

PROBLEM STATEMENT______________________________________________________________________________5

RESEARCH OBJECTIVES____________________________________________________________________________6

RESEARCH QUESTIONS_____________________________________________________________________________6

THEORYTICAL FRAME WORK_____________________________________________________________________6

RESEARCH METHODLOGY_________________________________________________________________________6

RESEARCH DESIGN__________________________________________________________________________________7

HYPOTHESIS STATEMENTS_______________________________________________________________________7

LITREATURE REVIEW__________________________________________________________________________.7-8

DESCRIPTIVE AND INFERENTIAL STATISTICS___________________________________________8- 15

CONCLUSION_____________________________________________________________________________________15

REFERENCES____________________________________________________________________________________16

2
1. Introduction
The main aim of this research was to check the impact of supply chain management
practices and what sort of impact it had on the organizational performance. This
chapter reflects about the background of the research along with necessary
requirements and provides an intensive, complete and in detailed background study,
literature review and analysis about the problem statement “impacts of supply chain
management practices on the overall performance of the organization”. The key
terms which are discussed in this chapter are consisted of research background,
problem statement, research questions, research objectives, the scope of research
study, the significance of this report and structure of complete report.

1.1 Background of Study

SCM is the research's main emphasis since it is an important component of

establishing a strategic advantage and increasing a company's operational
performance. In today's extremely dynamic world, competition takes place not just
between firms, but also across supply chains. To be competitive, businesses must
provide high-quality goods and services, provide quick service, and acquire a varied
set of talents that are relevant to the ever-changing business climate (Giannakos M.,
2004). As a result, businesses have come to recognize the need of having good
supply chain management systems in order to stay competitive in today's global
market. Supply chain management (SCM) helps a firm boost its competitive
efficiency by combining internal operations and imposing them on external partners
such as business and consumers. Supply chain inclusion benefits may be realized
when the efficiency of multiple supply chain techniques is linked together to optimize
the production process. Supply chain management requires the implementation of
internal cross-functional barriers and external vendor and consumer convergence.
SCM best practices for a more optimized supply chain (Jayaram J.,1997). There is
no denying the role of supply chain management, and various studies have shown
that the business supply chain has a significant impact on manufacturing stability
and variety. As a result, it is important to look at supply chain management strategies
employed in the industrial sector.

Strong supply chain management is used by organizations. SCM techniques have

long exchanged data and expertise, collaborated on research and development,

3
discussed price and terms, interrogated related topic about product needs, and
handled consumer demands with their customers and suppliers (Davis, T., 1993).
The organization's long-term viability depends on these cooperative activities.
Knowledge management enables collaborative functions, allowing the supply chain
to become more flexible and responsive to changes in input from diverse work
groups inside the company. Converting raw data from many sources into coherent
information that can be distributed to people who need it is the process of knowledge
sharing Workers' talents, knowledge, and insights must be documented and made
accessible to workers and chain management associates (Vinelli A., 2001). As a
result, information management can be used to determine how well an enterprise
can do. To maintain the effectiveness of the integral supply chain network, an
enterprise of supply chain management practices must exchange expertise such as
origins of production shortages and customer information and expectations both
internally and externally. The lack of knowledge exchange between supplier chain
participants would greatly impact the organization's overall profitability. Given the
significance of SCM supply chain management practices to organizational success
as well as the importance of information management in improving organizational
performance, it is essential to investigate the impact of these variables (K. S., et al.,
2004). Organizational success relates to how good a company meets both its market
oriented and financial objectives. Supply chain management SCM's short-term goals
are mainly to maximize efficiency, inventory decrement and less processing time,
whereas long term goals are to improve share market and profitability for all
participants. Financial measurements have been used to compare organizations and
assess a behavior of organization with the passage of time. Any corporate initiative,
like supply chain management, can result in improved organizational efficiency in the
long run. Supply chain management SCM practices have an effect not only on
overall corporate success, but also on a company's competitive edge (Paulraj A.,
2004). They are supposed to increase a competitive edge organization by price/cost,
efficiency, from market to time, supply dependability and product creativity. Prior
research has found that the different elements of SCM activities (along with strategic
supplier partnership) influence multiple types of strategic advantage just like price or
cost. Strategic supplier partnerships, as an example, will boost supplier efficiency,
minimize speed to market, and enhance customer loyalty as well as satisfaction.

4
1.2 Problem Statement

The continuous variations also entail that the organizations work with the increase
volume and great information diversity. Thus the organizational managers have great
concerns with the quality improvement in information that they have for taking
decisions and planning purpose. Majority of the companies also have to target the
changing needs of customers and the instabilities of environment but many
disturbances can damage production and its process, just like the changes in
demand pattern, break downs of machines, fluctuations in finances and many others.
Thus the variable of uncertainty should also be focused (Sagawa & Nagano, 2015).
Further firms are increasingly adopting the strategic supplier partnership in order to
develop inter-organizational collaboration in their supply chain. There occur some
main challenges and also some successes that all are connected with the way they
handle and administer the inventory level. It also depends on how it affects the
satisfaction of customers since it remains unknown that how the collaboration of
partners and companies with different marketers and suppliers affect organizational
performance and the supply chain (Wafula & George, 2015). Organizations are
encouraged to share information but due to uncertainty in the match of demand and
supply, and also due to the benefits and costs of the firms, there might be changes in
information sharing. This brings a barrier in adopting a sustainable business based
on information sharing (Fraccascia & Yazan, 2018). However, it has become an
urgent issue for the organizations to select a suitable strategy of postponement in
order to administer some of their main risks related to the information uncertainty.
Under this condition, the decision makers call only those workers who are
experienced and have expertise in the evaluation of the belief degree (Dong et al.,
2019). So far, an in-depth investigation has not been conducted on the degree of
support given by online platforms to the IS relationships. This is so because it is
really problematic to assess the assessing the real contributions of these elements
(Fraccascia & Yazan, 2018). Although, the current scenario has been studied
previously around the world but it has not been studied in depth or few studies in
Karachi, Pakistan and especially in the context industry of Karachi, Pakistan
The choosing of an alternative plan of action among possible options to accomplish
a given goal is referred to as decision-making. Decision making is indeed a major
responsibility to management because the organization's success is largely reliant
on the consistency of the decisions taken (P. M., et al., 2008). The management of
an organization is tasked with directing the organization to accomplish its aims and
defined goals. This necessitates not only flexibility and experience, but also the
capacity to make choices that result in positive outcomes.

1.3 Research Objectives

 The main objective of this study is to investigate the effects of supply chain
management on the performance of organizations in the firms of Karachi,
Pakistan.

5
1.4 Research Questions

 What is the effect of supply chain management practices on performance of

organizations in firms of Karachi, Pakistan?

Research Methodology

There are two main two main types of research approaches. They are called the qualitative
research approach and the quantitative research approach. The quantitative research
approach is where the data collection and analyzing of the data takes place with the help of
numbers (Babbie, 1998). The quantitative data does not extract detailed information from the
participants but uses huge number of participants for the data so the results can be
generalized (Blessing & Chakrabarti, 2009). The reason for the assessment of the data is
find correlation between the variables and the confirmation or the rejection of the hypothesis
of the research. Impartial data collection takes place in the quantitative method due to which,
the data can be decreased (Kothari, 2004). Since the study is collecting and analyzing large
data set, the research method is a quantitation one.
There are two main types of researches. They are known as the explanatory research type
and the exploratory research type. The explanatory research type has a significant
importance due to the fact that it helps in confirmation or rejection of the theory the study
represented thoroughly (Kothari, 2004). The explanatory research type assists in finding in-
depth results and put forward a detailed explanation of the phenomenon the study is
analyzing. The explanatory research assesses the variables representing the behavior of
people, their actions and also provides details regarding the conditions where they can be
impacted (Kumar & Phrommathed, 2005). Since the study is confirming a theory, the study
applies the explanatory research as the research type

6
Research Design

In the research design, Cooper et al. (2006); Veal (2005) suggested there are main types of
research design. They are the causal research design and the correlational research design.
The correlational research design deals with the evaluation of relationship among the
variables of the study in theory, whereas, the causal research design deals with the
causeandeffect association among the variables of the study (Kumar & Phrommathed, 2005).
The correlational research design is used in order to confirm the theory the study is
presenting (Koul, 2009). Thus, the correlational research design is applied since this study
assesses the association between the constructs of the study.

Hypothesis

Null Hypothesis: Does not the Impact Of Supply Chain Management Practices On
Organizational Performance?

Alternate Hypothesis : Does the Impact Of Supply Chain Management Practices On

Organizational Performance?

Literature Review

Customer Relationship

The concept of customer relationship (CR) is based on the aspect that how much the
customer is satisfied from services and in what manner and to what extent their complaints
about the products are being handled to continue their loyalty and to meet their expectations
perfectly (Hussain et al., 2018). Moreover, firms specifically told their management to
emphasize on developing CR in order to make them engage in their services and achieve
high satisfaction and experience of customers (Wang & Kim, 2017). According to (AlWeshah
et al., 2019) positive CR helps managers to boost their business and build a strong
foundation on this basis and eventually improve organizational performance.

Quality Information Sharing

The aspect of information quality (IQ) is a very essential element in today’s manufacturing
world. The pure concept is to provide customers with valid and diversified information which
could help customers to get a clear picture and access to their products (Sagawa &
Nagano,2015). Also, IQ is believed to increase performance of firms by providing a detail
representation of the services (Fauver et al., 2017). In addition, IQ is also referred to the
firm’s level of merit in the context of information and it has also been proved to be a
motivating factor for customers to buy a certain product because it helps in achieving their
task depending on valid information (McKnight et al., 2017).

Level of Information Sharing

The term information sharing (IS) is defined as the movement or transferring of information

7
regarding the product to other partners of manufacturing firms (Khan & Siddiqui, 2018). Also,
according to (Rached et al., 2015) the presence of IS known as a vital element in
manufacturing firms because it helps in giving a clear picture to the partners on daily basis
and increase SC performance at a great extent. Moreover, it has been known that increase
IS reduces logistics cost and increase connectivity and willingness to perform better.
Additionally, IS believed to be necessity in gaining knowledge which can further enhance
operational performance of SC and as a result increases overall performance of SC
(Marinagi et al., 2015).

Postponement

The basic concept of postponement is defined as the way of manufacturing firms to

tackle different risks or problems in SC and further enhance their performance by
increasing profits (Simão et al., 2016). Furthermore, there are many strategies of
postponement which like full postponement in which all the services or decision
making have been postponed until further notice (Dong et al., 2019). In addition,
implementation of postponement strategies varies from different requirements of the
SC because some of these strategies might affect the performance level of SC in a
negative manner and decrease their gaining of profits (Saghiri & Barnes, 2016)

Strategic Supplier Partnership

It is defined as the prospect of SC in which it develops loyalty, trust and integration to

work with collaboration between the partners to have a long term sustainable
performance and as well as the customers (Agus, 2015). Moreover, according to
(Fauziah et al., 2019) the termSSP defines a contract between the supplier and
buyer to be on the same page regarding the production and demand of the products
which eventually help to increase the operations and SC performance.

Organizational Performance

This term refers to the aspect that how the company is able to achieve their goals in
the market and also intrinsic goals (i.e., operational performance) (Tzokas et al.,
2015). The increase amount of productivity with the help of low cost and enhanced
profit gaining is known as essential element in achieving (OP) organizational
performance (Hussain et al., 2018). Also, the role of OP is gaining much attention
nowadays as firms want to create innovative capabilities in increasing their
performance. The new paradigm in order to be a successful organization is to adapt
those abilities which can develop variety of products with minimum efficiency (Al-
Weshah et al., 2019).

Descriptive and Inferential Statistics

8
Inferential Statistics
Strategic Supplier Partnership

Model Summary provides the detail about the characteristics of the model. In the present case. If
Strategic Supplier Partnership is increased by 1 unit then Organizational Performance will
increase by 0.839 which is significant at 5 % level of significance.

 R - value represents the correlation between the dependent(Organizational

Performance) and independent variable(Strategic Supplier Partnership) A value
greater than 0.4 is taken for further analysis. In this case, the value is .839 which is
good.
 R-square shows total variation for the dependent variable (Organizational
Performance) that could be explained by the independent variable (Strategic

9
 Supplier Partnership). A value greater than 0.5 shows that the model is effective
enough to determine the relationship. In this case, the value is .704 which is good.
 Adjusted R-square shows the generalization of the results i.e. the variation of the
sample results from the population in multiple regression. It is required to have a
difference between R-square and Adjusted R-square minimum. In this case, the
value is .693, which is far from .704, so it is good.
 Standard Error of Estimate (SEE) The standard error of the estimate is the estimation
of the accuracy of any predictions. It is denoted as SEE. The regression line
depreciates the sum of squared deviations of prediction.
Durbin-Watson test, which is used to detect the presence of autocorrelation in the residuals
of a regression and where T value is greater than 2, therefore, it shows no positive
correlation.

ANOVA determines whether the model is significant enough to determine the outcome and
interpret as

 P-value/ Sig value: Generally, 95% confidence interval or 5% level of the significance level
is chosen for the study. Thus the p-value should be less than 0.05. In the above table, it is
<.001. Therefore, the result is significant.
 F-ratio: It represents an improvement in the prediction of the variable by fitting
the model after considering the inaccuracy present in the model. A value is
greater than 1 for F-ratio yield efficient model. In the above table, the value is
61.859, which is good.

In this table we realize that there is a positive impact between dependable variable
(Organizational Performance) independent variable (Strategic Supplier Partnership),
because sig value is less than 0.05.
Customer Relationship

10
Model Summary provides the detail about the characteristics of the model. In the present case. If
Customer Relationship is increased by 1 unit then Organizational Performance will increase by
0.868 which is significant at 5 % level of significance.

 R - value represents the correlation between the dependent(Organizational

Performance) and independent variable(Customer Relationship) A value greater
than 0.4 is taken for further analysis. In this case, the value is .868 which is good.
 R-square shows total variation for the dependent variable (Organizational
Performance) that could be explained by the independent variable (Customer
Relationship). A value greater than 0.5 shows that the model is effective enough to
determine the relationship. In this case, the value is .753 which is good.
 Adjusted R-square shows the generalization of the results i.e. the variation of the
sample results from the population in multiple regression. It is required to have a
difference between R-square and Adjusted R-square minimum. In this case, the
value is .744, which is far from .753, so it is good.
 Standard Error of Estimate (SEE) The standard error of the estimate is the estimation
of the accuracy of any predictions. It is denoted as SEE. The regression line
depreciates the sum of squared deviations of prediction.
Durbin-Watson test, which is used to detect the presence of autocorrelation in the residuals
of a regression and where T value is greater than 2, therefore, it shows no positive
correlation.

11
ANOVA determines whether the model is significant enough to determine the outcome and
interpret as

 P-value/ Sig value: Generally, 95% confidence interval or 5% level of the significance level
is chosen for the study. Thus the p-value should be less than 0.05. In the above table, it is
<.001. Therefore, the result is significant.
 F-ratio: It represents an improvement in the prediction of the variable by fitting the
model after considering the inaccuracy present in the model. A value is greater than
1 for F-ratio yield efficient model. In the above table, the value is 79.307, which is
good.

In this table we realize that there is a positive impact between dependable variable
(Organizational Performance) independent variable (Customer Relationship), because sig
value is less than 0.05.
Level of Information Quality

12
Model Summary provides the detail about the characteristics of the model. In the present case. If
Level of Information Quality Relationship is increased by 1 unit then (Organizational
Performancewill increase by 0.625 which is significant at 5 % level of significance.

 R - value represents the correlation between the dependent(Organizational

Performance) and independent variable(Level of Information Quality) A value greater
than 0.4 is taken for further analysis. In this case, the value is .625 which is good.
 R-square shows total variation for the dependent variable (Organizational
Performance) that could be explained by the independent variable (Level of
Information Quality). A value greater than 0.5 shows that the model is effective
enough to determine the relationship. In this case, the value is .390 which is not good.
 Adjusted R-square shows the generalization of the results i.e. the variation of the
sample results from the population in multiple regression. It is required to have a
difference between R-square and Adjusted R-square minimum. In this case, the
value is .367, which is far from .390, so it is not good.
 Standard Error of Estimate (SEE) The standard error of the estimate is the estimation
of the accuracy of any predictions. It is denoted as SEE. The regression line
depreciates the sum of squared deviations of prediction.
Durbin-Watson test, which is used to detect the presence of autocorrelation in the residuals
of a regression and where T value is greater than 2, therefore, it shows no positive
correlation.

ANOVA determines whether the model is significant enough to determine the outcome and
interpret as

 P-value/ Sig value: Generally, 95% confidence interval or 5% level of the significance level
is chosen for the study. Thus the p-value should be less than 0.05. In the above table, it is
<.001. Therefore, the result is significant.
 F-ratio: It represents an improvement in the prediction of the variable by fitting the
model after considering the inaccuracy present in the model. A value is greater than
1 for F-ratio yield efficient model. In the above table, the value is 16.625, which is
good.

13
In this table we realize that there is a positive impact between dependable variable
(Organizational Performance) independent variable (Level of Information Quality), because
sig value is less than 0.05.
Postponement

Model Summary provides the detail about the characteristics of the model. In the present case. If
Postponement is increased by 1 unit then( Organizational Performance) will increase by 0.835
which is significant at 5 % level of significance.

 R - value represents the correlation between the dependent(Organizational

Performance) and independent variable(Postponement) A value greater than 0.4 is
taken for further analysis. In this case, the value is .835 which is good.
 R-square shows total variation for the dependent variable (Organizational
Performance) that could be explained by the independent variable (Postponement).
A value greater than 0.5 shows that the model is effective enough to determine the
relationship. In this case, the value is .698 which is good.
 Adjusted R-square shows the generalization of the results i.e. the variation of the
sample results from the population in multiple regression. It is required to have a
difference between R-square and Adjusted R-square minimum. In this case, the
value is .686 which is far from .698, so it is good.

14
  Standard Error of Estimate (SEE) The standard error of the estimate is the estimation
of the accuracy of any predictions. It is denoted as SEE. The regression line
depreciates the sum of squared deviations of prediction.
Durbin-Watson test, which is used to detect the presence of autocorrelation in the residuals
of a regression and where T value is greater than 2, therefore, it shows no positive
correlation.

ANOVA determines whether the model is significant enough to determine the outcome and
interpret as

 P-value/ Sig value: Generally, 95% confidence interval or 5% level of the significance level
is chosen for the study. Thus the p-value should be less than 0.05. In the above table, it is
<.001. Therefore, the result is significant.
 F-ratio: It represents an improvement in the prediction of the variable by fitting the model
after considering the inaccuracy present in the model. A value is greater than 1 for F-ratio
yield efficient model. In the above table, the value is 60.050, which is good.

In this table we realize that there is a positive impact between dependable variable (Organizational
Performance) independent variable (Postponement), because sig value is less than 0.05.

CONCLUSSION
The main objective of this study is to examine the influence of supply chain management on how the
organization performs in the context any firm from Karachi, Pakistan. There are various variables by
which this relationship has been evaluated. It included strategic supplier partnership, customer
relationship, level of information sharing, quality information sharing and postponement which helped
in examining the organizational performance. The current study used quantitative approach with the
help of explanatory purpose to collect the data. However, data was collected from the professional of
supply chain in any firms. Similarly, the final sample size is 211 and these respondents have been
selected via using convenience sampling. At last, the data has been analyzed using multiple
regression analysis. This study provided several beneficial results in the aspect of supply chain
management. However, the relationship between strategic supplier partnership and organizational
performance is positive and significant. Second relationship, customer relationship and organizational
performance is also positive and significant. The relationships between level of information sharing
and quality information sharing is also positive and significant towards organizational performance.
On the other hand, postponement is positive but insignificantly related with organization performance.

15
REFERENCES
 Adjei, M.T., Griffith, D.A., & Noble, S.M. (2009). When do relationships pay off for
small retailers? Exploring targets and contexts to understand the value of relationship
marketing. Journal of Retailing, 85(4), 493-501.
 Agus, A. (2015). Supply chain management: The influence of scm on production
 performance and product quality. organization, 12(17), 18.
 Al-Weshah, G.A., Al-Manasrah, E., & Al-Qatawneh, M. (2019). Customer relationship
 management systems and organizational performance: Quantitative evidence from
the jordanian telecommunication industry. Journal of Marketing Communications,
25(8),
 799-819. Attia, A. (2015). Testing the effect of marketing strategy alignment and
triple-a supply chain on performance in egypt. EuroMed Journal of Business, 10(2),
163-180.
 Babbie, E.R. (1998). The practice of social research (Vol. 112): Wadsworth
publishing company Belmont, CA.
 Blessing, L.T., & Chakrabarti, A. (2009). Drm, a design research
methodology:Springer Science & Business Media.
 Carbonara, N., & Pellegrino, R. (2018). Real options approach to evaluate
postponement as
 supply chain disruptions mitigation strategy. International Journal of Production
 Research, 56(15), 5249-5271.
 Cooper, D.R., Schindler, P.S., & Sun, J. (2006). Business research methods (Vol. 9):
 McGraw-Hill Irwin New York.Fall 2019

16