scholarly journals A Relationship between Supply Chain Practices, Environmental Sustainability and Financial Performance: Evidence from Manufacturing Companies in Jordan

2021 ◽  
Vol 13 (4) ◽  
pp. 2152
Author(s):  
Luay Jum’a ◽  
Dominik Zimon ◽  
Muhammad Ikram

Pursuing sustainable development creates competitiveness for manufacturing firms in the market, however the financial pressure of adopting sustainable environmental practices is still a major concern. Few studies were found on the inter-relationships between supply chain management practices, environmental sustainability, and firm financial performance. Moreover, manufacturing companies are compelled by different pressure groups across the globe to maintain environmental standards while conducting their business and supply chain activities. Therefore, the current study aims to investigate the impact of supply chain practices on environmental sustainability and financial performance. In addition, the role of environmental sustainability as a mediator between supply chain management and financial performance was analyzed to improve sustainable development. A well-designed questionnaire was administered to manufacturing companies in Jordan for data collection. A total of 376 responses were analyzed and the proposed hypotheses were tested by using Structural Equation Modelling (SEM) approach. The results reveal that environmental sustainability was tested significantly and influenced by supply chain practices such as relationship with customers, postponement, level of information sharing, and information quality. Whereas environmental sustainability had a significant direct effect on financial performance. Finally, environmental sustainability mediated the relationship of all supply chain management practices with financial performance except strategic supplier partnership dimension. The study provides policy guidelines to decision makers while simultaneously assists the managers to improve sustainability practices in manufacturing companies.

2021 ◽  
Author(s):  
Dr. Fadhel Hilal

common supply chain management practices (supplier partnership, customer relationship, information sharing, and lean system), net trade cycle, and financial performance. It consists of nine hypotheses concerning the relationships of the aforementioned factors that have been verified throughout reviewed literature and examined via employing the structural equation modelling technique. This research used data taken from floated questionnaires at three manufacturing companies in the Kingdom of Bahrain. An inclusive review of the literature to retrieve the four most common supply chain management practices has been undertaken and has identified limitations in the research techniques applied. This research has discovered the significant influences of the supplier partnership, the information sharing, and the lean system of the three most common supply chain management practices and the net trade cycle on the financial performance. Although this is the first research that combines the critical relationships among those four most common supply chain management practices, the net trade cycle, and the financial performance in one model, it is important to note that this study was unsuccessful in demonstrating whether there is a significant influence between customer relationship of the most common supply chain management practices and the net trade cycle on the financial performance. Researchers can employ the outcomes of this research to discover several related hypotheses in more details and increase the accuracy of forthcoming empirical relationships among those factors. This research offers particular suggestions for such further research. The outcomes of this research can be utilized by managers to highlight the execution of those four most common supply chain management practices and the net trade cycle in their respective ventures. Moreover, almost all of those relationships are found to have significant influences on the financial performance. Furthermore, the outcomes can be recommended to production managers who may well assign resources to enhance these practices to achieve the greatest outcomes.


2021 ◽  
Vol 9 (3) ◽  
pp. 908-921
Author(s):  
Deniz Özbay

The linkage between sustainable supply chain management (SSCM) and financial performance has attracted increasing interest from both researchers and practitioners. Although many have argued that the SSCM practices improve financial performance, empirical studies have produced mixed results, and the direction of the relationship is still unclear.  This study examined the relationship between SSCM and financial performance for Turkish manufacturing companies. Financial performance was measured using ROA, ROE and price to book ratio, while SSCM performance was measured with a new multivariable performance indicator. Financial performance data were obtained from the Bloomberg Database, while SSCM data were collected from non-financial reports using content analysis. The total sample included 47 manufacturing companies listed in Borsa İstanbul, covering 584 firm-year observations for 2007-2019. Panel data regression analysis was used to test the relationship between SSCM and financial performance. Similar to the literature's general view, the findings support a positive linear relationship between SSCM and firm financial performance.


Author(s):  
I. Barskiy ◽  
◽  
M. Makarenko ◽  
◽  

It has been proven that in the context of globalization of production and increasing consumption, the logistics and transport industry is faced with the task of satisfying the complex demands of consumers. Manufacturing enterprises are recognizing the need for effective supply chain management in response to a globalized economy and competition, and hence the need to adopt new strategies such as supply chain management and global sourcing and outsourced logistics functions. First, we will structure the existing research on the selected topic. Such a literature review should provide a basis for and identify changes in research trends. The systematization of scientific literature on terminal operations and port efficiency provides justification for specific popular areas, but does not cover all problematic issues. Port management reforms continue to take place in different ways, depending on the situation in the country or region. Thus, maritime researchers increasingly tackled port-related problems in the context of supply chain management or port research. Based on these studies, three approaches to the philosophy and practice of supply chain management can be distinguished: studies on the impact on the shipping and port industry, the application of supply chain management concepts and models for port research, and the integration of supply chain activities. Researching the Impact of Supply Chain Management on the Port Industry. Examines the impact of supply chain management strategies adopted by manufacturing companies on the port industry. He typically views supply chain management as a phenomenon that occurs outside of port operations, and analyzes the dynamics among market players when exposure is externally. Research on the application of supply chain management concepts for ports. Consider supply chain management concepts and models as analytical tools for addressing and expanding port operations and management issues. Based on the position that the port industry has been significantly influenced by supply chain management practices and accepts this approach as the dominant logistics perspective. Research on supply chain integration activities. This approach also views ports as an extended system that interacts with other parts of the supply chain. In addition, this approach recognizes the integration of supply chain management and the integration of supply chains as phenomena that can take place in ports along the supply chain and views ports as a holistic system that actively participates in the phenomenon under study. A port-to-supply chain integration strategy must be firmly based on a strong focus on supply chain integration within individual seaport terminals. Successful implementation of this strategy necessarily implies a significant increase in terminal productivity.


2017 ◽  
Vol 6 (2) ◽  
pp. 136 ◽  
Author(s):  
Mohamed Ali Wahdan ◽  
Mohamed Ashraf Emam

This paper presents the impact of applying the supply chain management (SCM) on the agribusiness field to optimize productivity and decreasing cost which will have a direct impact on the net income of the organization. The main two research questions are: is there a significant impact of supply chain management on financial performance? and is there a significant relationship between supply chain management and financial performance as well as responsibility accounting? To answer the research questions, data was collected from financial statements of agribusiness case from Egypt and the survey was conducted. The findings of the study indicated that there is a significant impact of supply chain management on financial performance through enhancing the productivity, decreasing the cost and improving profitability. Moreover, applying the efficient supply chain management can improve the use of responsibility accounting through the efficient usage for the budget of the crop.


2018 ◽  
Vol 38 (9) ◽  
pp. 1815-1835 ◽  
Author(s):  
Annachiara Longoni ◽  
Raffaella Cagliano

Purpose Little empirical work has been done on the effects of inclusive environmental disclosure and green supply chain management (GSCM) on firm outcomes. The literature on environmental disclosure suggests that it is a useful practice to improve a firm’s reputation and its financial performance and also to establish a dialogue with stakeholders improving environmental performance. Recent conceptual contributions in the supply chain management literature state that stakeholder expectations and informational needs increasingly concern firm supply chains. Thus, the authors propose that positive effects of inclusive environmental disclosure practices are enhanced in presence of GSCM practices. The paper aims to discuss these issues. Design/methodology/approach To test these relationships a combination of primary data on environmental disclosure practices, GSCM practices and environmental performance, and secondary data on financial performance was used. A series of hierarchical regression models were performed to test the disclosure-outcome relationships and the moderation of GSCM practices. Findings Results provide empirical support for the impact of inclusive environmental disclosure practices on financial performance but no support for the impact on environmental performance. Specifically, the more inclusive the environmental disclosure practices the greater and positive is the impact on financial performance in presence of GSCM practices. Originality/value This study provides empirical evidence of the joint effects of inclusive environmental disclosure and GSCM practices on environmental and financial performance. Doing so, it reinforces the recent conceptual foundation that firms should align and leverage on supply chain management for disclosure practice effectiveness.


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