Development and validation of a measurement instrument for studying supply chain management practices

Suhong Li, Suhasini Subba Rao, T. S. Ragu‐Nathan, Bhanu S. Ragu-Nathan

Journal of Operations Management · 2005 · 965 citations · 87 references

Concepts

TL;DR

Competition has shifted from between firms to between supply chains, making effective SCM a key source of competitive advantage and improved performance. The study aims to conceptualize, develop, and validate six dimensions of SCM practices—strategic supplier partnership, customer relationship, information sharing, information quality, internal lean practices, and postponement. Using data from 196 organizations, the authors tested and validated the six‑dimension measurement model with structural equation modeling. The resulting instrument offers a parsimonious tool for assessing overall supply‑chain performance.

Abstract

Abstract It is widely argued that competition is no longer between organizations, but among supply chains. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance. This research conceptualizes, develops, and validates six dimensions of SCM practices (strategic supplier partnership, customer relationship, information sharing, information quality, internal lean practices, and postponement). Data for the study were collected from 196 organizations and the measurement scales were tested and validated using structural equation modeling. It is hoped that this study will provide a parsimonious measurement instrument to assess the performance of the overall supply chain.

References

87