A New Approach to Supply Chain Performance Measurement: An Empirical Study of Manufacturing Organizations

Abstract

Existing research work has established that many of today's manufacturing organizations have failed to develop a comprehensive supply chain performance measures. In this chapter, the authors intend to empirically assess the effects of supplier buyer relations and human metrics on supply chain performance in the context of Indian manufacturing organizations. After rigorous literature review, total 18 variables have been identified which are later on reduced in number by factor analysis. As a pilot study, primary data is collected from 100 manufacturing organizations by means of a questionnaire and a scale is developed. On a sample size of 100, the proposed hypotheses are tested by applying two-tailed tests. t-test and factor analysis resulted in 5 factors, 2 related to supplier-buyer relations and 3 related to human metrics. The overall reliability of the scale comes out to be 0.697. The research work provides a new approach to the manufacturing organizations to understand the factors affecting supply chain performance. The present study is limited to Indian manufacturing organizations.