The moderating effect of supply chain role on the relationship between supply chain practices and performance: An empirical analysis

The purpose of this paper is to examine the relationships between specific supply chain practices and organizational performance and whether this relationship is moderated by the role that a company assumes in its respective supply chain.

This paper uses regression analysis and the relative weights method to analyze a set of survey data from respondents within the non‐academic, North American membership of the Institute of Supply Management.

The results show that the supply chain role for a company makes a difference in terms of the specific supply chain practices that lead to better performance. Further, there is a clear indication that the relative importance of a specific practice varies across the supply chain roles thereby indicating that a general link between practice and performance may be erroneous without considering the specific context of the company concerned.

Supply chain practices are complex constructs. While this study shows the effect of broadly‐accepted supply chain practices on performance, not all possible practices are covered in the study. Additional practices not considered may have an effect on company performance and future research may improve upon the findings by extending the analysis to include an expanded segmentation of supply chain role.

The results of the study serve as a practical guideline for managers that not all practices would be effective for all companies. Managers must look at the role‐specific context of their organization in the supply chain before deciding which practices are likely to be appropriate.

This paper expands the current body of research in the supply chain area by examining the supply chain roles of manufacturer, distributor, retailer and service provider. This is a much broader construct than the more common dyadic treatment of a supply chain consisting only of a customer and supplier, and adds a new contextual dimension to supply chain research. In addition, service provider as a supply chain role has been hardly researched before.