I J C R B Impact of Supply Chain Management Practices On Competitive Advantage in Manufacturing Companies of Khuzestan Province
I J C R B Impact of Supply Chain Management Practices On Competitive Advantage in Manufacturing Companies of Khuzestan Province
I J C R B Impact of Supply Chain Management Practices On Competitive Advantage in Manufacturing Companies of Khuzestan Province
Moslem Ghatebi
Department Of Accounting, Islamic Azad University, Shoushtar Branch, Shoushtar, Iran
Elham Ramezani
Department of Business Management, Islamic Azad University, Andimeshk Branch, Andimeshk, Iran
Mohammad Ali Enayati Shiraz
Department of Industrial Management, Islamic Azad University, Andimeshk Branch, Andimeshk, Iran
Abstract
Understanding and implementation of supply chain management is a necessary condition to remain competitive
in the global competition and improving profitability. This study in term of aim is applied and in term of
implement is descriptive and method of data collection is field. The research population is manufacturing
companies in Khuzestan province and sampling method is Stratified random sampling. In present research,
questionnaire was used to survey managers and experts views in manufacturing companies of Khuzestan
province. For data analysis is used Pearson's correlation coefficient. The result obtained show that there is
relationship between supply chain management practices and competitive advantage in Khuzestan province's
manufacturing companies.
1. Introduction
Compete in global markets will expand in 1990s, challenges creates related to product and service offerings to
the right place, at the right time, with the lowest cost and highest quality. Studies showed that approach of supply
chain management (SCM) used increasingly as an opportunity to achieve these goals by many organizations.
Therefore, understanding and implementation of supply chain management is a necessary condition to remain
competitive in the global competition and improving profitability (Zuckerman, 2004). Organizations need
materials, equipment, facilities and suppliers because customers can obtain products and services in the shortest
possible time, with minimum cost and high quality. Therefore performance of an organization by other
organizations that make the supply chain will be affected. It seems that supply chain management is a new
strategy to gain a competitive advantage (Tummala et.al, 2004, p507).
The supply chain encompasses all activities associated with the flow and exchange of goods and services from
raw material stage to the final product usable by the client and supply chain management emphasis on
integration of supply chain activities and information flows associated with them to achieve competitive
advantage of continued and reliable through improved supply chain relationships (Zuckerman, 2004).
Since the methods of supply chain management is different, thus in this study is tried to investigate impact of
supply chain management practices to obtain competitive advantage. So that main question is: Which has
practices of supply chain management (SCM) impact the competitive advantage in Khuzestan province's
manufacturing companies?
2. Literature Review
Customer relationship consists of all the ways that will be used for the purpose of controlling and managing
customer complaints, creating long-term relationships with consumers and to improve consumer satisfaction.
Also customer relationship management as an important component of SCM procedures has been used and is
among the most stable benefits. Nowadays the development of customization and customer expectations lead to
a period that customer relationship management is vital to the survival of the company. Good relationships with
members of the supply chain, including customers are required to run successful SCM applications. Close
relationships with customer organizations enables to distinguish their products to competitors, Retain customer
loyalty and this value is protected largely to consumers (Li et.al,2oo6,p121). Customer relationship goals can be
mentioned as follows :( Niknia, 2007, p53).
Identifying new business opportunities
Reduce missed opportunities
Reducing customer defection
creating customer loyalty
Improve customer service
Improve organization appearance
Reduce costs
3. Research Methodology
This study in term of aim is applied and in term of implement is descriptive and method of data collection is
field. The research population is manufacturing companies in Khuzestan province and sampling method is
Stratified random sampling. In present research, questionnaire was used to survey managers and experts views
in manufacturing companies of Khuzestan province. For validity of questionnaire is used content validity and for
reliability of questionnaire is used Cronbach's alpha coefficient. Cronbach's alpha coefficients for the variables in
the questionnaire is obtained higher than 70%, thus questionnaire is reliable. For data analysis is used Pearson's
correlation coefficient.
4. Data Analysis
First hypothesis: there is relationship between strategic supplier partnerships (SSP) with competitive advantage
in manufacturing companies of Khuzestan province.
According to the obtained results was observed that correlation coefficient between strategic supplier partnership
and competitive advantage is equal to 58/7 percent and given the level of sig in this test the obtained less than
0/05, thus research hypothesis is confirmed and there is relationship between strategic supplier partnerships with
competitive advantage in manufacturing companies of Khuzestan province.
Second hypothesis: there is relationship between Customer Relationship (CR) with competitive advantage in
manufacturing companies of Khuzestan province.
According to the obtained results was observed that correlation coefficient between CR and competitive
advantage is equal to 43/3 percent and given the level of sig in this test the obtained less than 0/05, thus research
hypothesis is confirmed and there is relationship between CR with competitive advantage in manufacturing
companies of Khuzestan province.
Third hypothesis: there is relationship between level of information sharing (LIS) with competitive advantage in
manufacturing companies of Khuzestan province.
According to the obtained results was observed that correlation coefficient between LIS and competitive
advantage is equal to 43/3 percent and given the level of sig in this test the obtained less than 0/05, thus research
hypothesis is confirmed and there is relationship between LIS with competitive advantage in manufacturing
companies of Khuzestan province.
Fourth hypothesis: there is relationship between quality of information sharing (QIS) with competitive
advantage in manufacturing companies of Khuzestan province.
According to the obtained results was observed that correlation coefficient between QIS and competitive
advantage is equal to 53/4 percent and given the level of sig in this test the obtained less than 0/05, thus research
hypothesis is confirmed and there is relationship between QIS with competitive advantage in manufacturing
companies of Khuzestan province.
Fifth hypothesis: there is relationship between internal lean practices (ILP) with competitive advantage in
manufacturing companies of Khuzestan province.
According to the obtained results was observed that correlation coefficient between ILP and competitive
advantage is equal to 48/2 percent and given the level of sig in this test the obtained less than 0/05, thus research
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