Supply Chain Management Competency and Firm Financial Success Academic Article uri icon

abstract

  • Supply chain management (SCM) plays a major role in creating (or destroying) shareholder value by influencing the three major drivers of firm financial performance: revenue, operating costs, and working capital. Yet, the relationship between SCM competency and firm financial performance is not well-established. Drawing on the resource-based view of the firm, this study assesses this relationship using Delphi-style opinion data from AMR Research's Supply Chain Top 25 rankings to assess SCM competency and Altman's (1968) Z-score statistic as the measure of financial success. The study findings show that firms recognized by industry experts for SCM competency have significantly higher Z-scores than their close competitors and industry averages. Council of Supply Chain Management Professionals.

published proceedings

  • JOURNAL OF BUSINESS LOGISTICS

author list (cited authors)

  • Effinger, A. E., Natarajarathinam, M., Adams, F. G., Gray, J. B., Hofman, D., & O'Marah, K.

citation count

  • 85

complete list of authors

  • Effinger, Alexander E||Natarajarathinam, Malini||Adams, Frank G||Gray, J Brian||Hofman, Debra||O'Marah, Kevin

publication date

  • September 2011

publisher