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Supply Chain Management Competency and Firm Financial Success
Author(s) -
Ellinger Alexander E.,
Natarajarathinam Malini,
Adams Frank G.,
Gray J. Brian,
Hofman Debra,
O’Marah Kevin
Publication year - 2011
Publication title -
journal of business logistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.611
H-Index - 79
eISSN - 2158-1592
pISSN - 0735-3766
DOI - 10.1111/j.2158-1592.2011.01018.x
Subject(s) - competitor analysis , business , supply chain , supply chain management , delphi method , shareholder value , marketing , working capital , value (mathematics) , statistic , shareholder , industrial organization , finance , corporate governance , statistics , mathematics , machine learning , computer science
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.