Supply Chain Management Competency and Firm Financial Success

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.

authors

• Natarajarathinam, Malini

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

• Wiley  Publisher

keywords

• Altman Z-score
• Delphi Method
• Financial Performance
• Financial-scm Connection
• Scm Competency
• Supply Chain Management

Digital Object Identifier (DOI)

• 10.1111/j.2158-1592.2011.01018.x

start page

• 214

end page

• 226

volume

• 32

issue

• 3

URL

• http%3A%2F%2Fdx.doi.org%2F10.1111%2Fj.2158-1592.2011.01018.x

user-defined tag

• 9 Industry, Innovation and Infrastructure