Business Strategy
Supply Chain Performance Measurement: A Scale Development

Article Details
Pub. Date : Mar' 2019
Product Name : The IUP Journal of Business Strategy
Product Type : Article
Product Code : IJBS61903
Author Name : Kritika Rana and Sanjeev K Sharma
Availability : YES
Subject/Domain : Management
Download Format : PDF Format
No. of Pages : 24



Supply Chain Management (SCM) being an interdisciplinary concept lacks a consensus on its definition, which has further aggravated the problem of measuring the performance of a supply chain. In order to manage a supply chain effectively, it is important to measure its performance. But the metrics that are used to measure the performance of a supply chain vary with the industry. Thus, there is a dire need to develop a supply chain performance scale specific to the industry under consideration, which in this case is the Indian pharmaceutical industry. A total of 91 items were generated after careful review of literature encompassing both financial/non-financial measures and internal/external measures. Data was collected from 153 respondents through the medium of Google Forms. Eight factors were extracted on applying Exploratory Factor Analysis (EFA); Maximum Likelihood Estimation (MLE) and Cronbach’s alpha for these factors ranged from 0.60 to 0.90. Further, convergent and discriminant validity was achieved on applying Confirmatory Factor Analysis (CFA) on another set of data comprising 103 respondents.


In today’s globalized world (Christopher, 2016; and Verma and Seth, 2011), a firm faces immense competition (Cooper et al., 1997; and Mentzer et al., 2001) in terms of rapidly changing technology (Mentzer et al., 2001; and Christopher, 2016), shortening product life cycle (Lee and Whang, 2004), etc., leading to uncertainty in the marketplace (Mentzer et al., 2001). To overcome this uncertainty, a firm must ensure a coordinated and effective flow of materials and information, both within its boundaries and beyond (Mentzer et al., 2001; and Verma and Seth, 2011), as the competition is no longer between the firms in an industry but across supply chains which may span several industries (Christopher, 2016).


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