The Influence of Supply Chain Management (SCM) Practices on Organizational Performance: Knowledge Management Processes as Mediator

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Date
2011-12
Authors
Cheng, Choon Ho
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Abstract
This research was aim to study on the impact of supply chain management practices toward organizational performance and investigate whether knowledge management processes serves as a mediator in determined on the above relationship. Seven dimensions of supply chain management practices were used to investigate on the impact of two difference dimensions in the organizational performance while three dimensions of knowledge management processes were us.ed to test on the mediator effect toward the above relationship. Qua.lltitative method was applied with data were obtained via questionnaires from a sample of 138 manufacturing companies listed in the Federation of Malaysia Manufacturers (FMM). Factor analyses were used to confirm on the factor structure, initial validity and interrelation of the variables while hierarchical regression was used to examine the relationship between predictor variables and criterion variables. Result showed that SCM practices of information sharing, quality of information sharing and lean practices were positively related to organizational financial and non financial performance. Three dimensions of knowledge management processes were found to be mediated the relationship between information sharing, quality of information sharing and lean practices toward organizational non financial performance. However, only one knowledge management processes of knowledge application was found to be partially mediates on the relationship between SCM practices. of customer relationship, information sharing, quality of information sharing and lean practices on organizational financial performance. The theoretical implication of the study provided a better understanding on the factor that influenced on organizational performance and practical implication enable practitioners to be more adopted on the practices that can help on influencing the organizational performance. Recommendation over future research included others measurement items were discussed as well in the end of the study.
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Supply Chain Management (SCM) , Knowledge Management
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