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Linking Supply Chain Management Superiority to Multifaceted Firm Financial Performance
Author(s) -
Greer Bertie M.,
Theuri Peter
Publication year - 2012
Publication title -
journal of supply chain management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1523-2409
DOI - 10.1111/j.1745-493x.2012.03276.x
Subject(s) - supply chain , business , robustness (evolution) , supply chain management , market liquidity , supply chain risk management , industrial organization , yield (engineering) , demand chain , sample (material) , service management , finance , marketing , biochemistry , chemistry , materials science , chromatography , metallurgy , gene
Research has shown that superior supply chain effectiveness can yield enhanced firm financial performance. However, existing research does not use a consistent definition or a comprehensive list of supply chain leader firms. Using matched sample comparison, this study investigates the robustness of the relationship between supply chain effectiveness and the overall financial health of firms viewed as supply chain leaders by using AMR 's supply chain top 25 list. We hypothesize that firms that have been identified by AMR as supply chain leaders will be more financially healthy than nonsupply chain leaders. That is, they will have better cost, activity, and liquidity ratios. The findings indicate that firms identified as supply chain leaders outperform their nonsupply chain leader peers in accounting‐based activity, cost, and liquidity measures.