The Role of SCM practices in Competitive Advantage and Firm Performance: A Mediating Role of Supply Chain Innovation and TQM

Abstract

The present study aimed to propose a theoretical framework that elucidates the impact of supply chain management (SCM) practices on the competitive advantage and performance of firms while considering the mediating effects of supply chain innovation and total quality management (TQM). This research article employed a descriptive correlational methodology based on a questionnaire, complemented by structural equation modelling. The study involved the participation of 279 individuals, including managers, assistants, and supply chain experts from small and medium-sized enterprises. The study findings suggest that SCM practices significantly influence TQM, supply chain innovation, competitive advantage, and firm performance. Additionally, TQM has a significant effect on supply chain innovation, competitive advantage, and firm performance. Similarly, supply chain innovation has a positive and significant impact on competitive advantage and firm performance. Furthermore, the positive and significant mediating role of supply chain innovation and TQM in the effect of SCM practices on competitive advantage and firm performance was observed. Therefore, it can be concluded that SCM practices enhance firm performance and competitive advantage through the improvement of supply chain innovation and TQM.

Keywords

• competitive advantage
• firm performance
• SCM
• supply chain innovation
• TQM