DISSERTATION TITLE:

INFLUENCE OF SUPPLY CHAIN MANAGEMENT PRACTICES ON FIRM

PERFORMANCE: EVIDENCE FROM SELECTED FMCG COMPANIES IN NIGERIA
DISSERTATION AIM
This study aims to investigate the influence of supply chain management practices on the
performance of firms in the fast moving consumer goods industry in Lagos, Nigeria.
OBJECTIVES
1. To examine the influence of Information and Communication Technology on Firm
Performance
2. To investigate the relationship between Supply Chain Integration and Performance of Firms
3. To determine the influence of Operational Responsiveness on Firm Performance
4. To evaluate the relationship between Green Practices and Performance of Firms
RATIONALE FOR CHOICE OF TOPIC
Supply Chain Management is one of the most effective ways for organizations to improve their
competitive advantage, business stability and growth. As one of the large economies in Africa,
Nigeria’s desire is to become a hub for manufacturing in the world. Nigeria companies can gain
competitiveness by increasing the productivity and efficiency of its manufacturing operations.
Therefore, there is a need to adopt supply chain practices. Supply chain management practices
enables organizations to be globally competitive and improve on its performance.
Despite the key roles and the significant importance of Supply Chain Management practices,
limited research has been done in developing countries especially Africa and Nigeria context.
STRATEGIC IMPORTANCE OF TOPIC
Many organizations have not realized the importance of adopting supply chain management
practices due to lack of knowledge about what constituted supply chain management practices.
Hence, it is necessary to identify the supply chain management practices in the context of
Nigeria. This will enable the companies to direct their efforts on the identified practices that
needs improvement.
Also, Nigerian organizations will gain more awareness regarding supply chain management
practices that could help to improve their performance and increase their competitiveness
LITERATURE REVIEW
The effective use of supply chain practices is essential to the success of supply chain
management. The term "supply chain practices" refers to a group of actions made by a company
to support efficient supply chain management (Li et al., 2006). The performance of a single firm
and the entire supply chain is improved by the implementation of supply chain practices. Supply
Chain Management aims for external linking with suppliers, clients, and other channel members
as well as internal linking with organizational activities in order to be highly competitive and to
achieve sustained profitability growth. This could be accomplished by developing various
Supply Chain Practices in an efficient manner (Wook Kim, 2006).
A small number of supply chain practices have been empirically explored by the majority of the
authors. Inventory management, information technology, supply chain strategy, and supply chain
integration were the four supply chain practices that Sahay and Mohan (2003) concentrated on.
In their 2003 study on supply chain practices in India, Sahay et al. described the supply chain
effort to address the constraints of the competitive market. Chin et al. (2004) conducted a survey
in Hong Kong manufacturing organizations to determine the degree to which Hong Kong
manufacturers are utilizing Supply Chain Practices, such as developing relationships with
customers and suppliers, implementing information technology, redesigning material flows,
developing corporate cultures, and identifying performance measurements
Li et al. (2006) define five aspects of supply chain practices: deferral, customer interaction, level
and quality of information sharing, and strategic supplier partnership. The Indian automobile
industry, according to Saad and Patel (2006), has not fully adopted the idea of supply chain
practices, which underlines the challenges in putting them into practice. The state of logistics and
supply chain practices in India are thoroughly examined and presented by Srivastava (2006).
This includes Supply Chain collaboration and partnerships, Supply Chain structure, facility
network design, transportation and logistics, and the role of Information and Communications
Technologies (ICT).
Wook Kim (2006) analyzed technical, structural, and logistical practices while examining the
causal relationships between supply chain practices, competition capability, the degree of supply
chain integration, and firm performance. Koh et al. (2007) divided the Supply Chain Practices
into two categories: strategic collaboration and lean practices, and outsourcing and multi-
suppliers (including E-procurement, Third Party Logistics, subcontracting, and many suppliers)
(close partnership with suppliers, close partnership with customers, Just – In - Time supply,
Supply Chain benchmarking, strategic planning, holding safety stock, few suppliers). According
to Ou et al. (2010), a successful application of supply chain practices results in improved
customer satisfaction, which in turn improves financial performance.
In their study of supply chain practices, Sundram et al. (2011) focused on supplier collaboration,
information sharing, risk and reward sharing, information quality, delay, customer relationships,
and shared vision and objectives. Supply chain practices such supplier partnerships, customer
relationships, information exchange, information technology, and training were examined by
Chong et al. in 2011. Anuar and Yusuff (2011) examined the best Supply Chain Practices and
their impact on the effectiveness of the Supply Chain.
Hsu (2014) investigated the roles that corporate entrepreneurship, social capital, and resources
play in the implementation of supply chain practices and focused on the practices themselves,
including information sharing, integrating supply chain activities, communicating the firm's
future strategy, and forming cross-organizational supply chain management teams.
The following research gaps on supply chain practices have been found from prior study, and
they are further taken into account in this research work:
a. Because the idea of supply chain management is complicated and involves a network of
organizations in the effort to source, manufacture, and deliver a final product, its entire domain
cannot be covered in just a few studies, and measured items that have been published do not
necessarily imply that they are accurate across national boundaries and cultures. There is a need
for greater research in this field.
b. The majority of research on supply chain procedures is based on acknowledged standards. The
effectiveness of an organization may be impacted by other activities (including green practices)
that were not taken into account.
c. While operations management scholars place an emphasis on buyer-supplier interaction,
information exchange, and operational procedures, logistics researchers often concentrate on the
transportation, distribution, and warehousing viewpoint of supply chain management. However,
upstream and downstream supply chain practices provide the foundation for the majority of
supply chain practices investigations. The majority of the research ignore operational practices.
METHODOLOGY
This study will adopt a quantitative, cross-sectional survey design. Data will be collected using
structured questionnaires that will be administered to staff of selected manufacturing companies
in the Fast Moving Consumer Goods Industry in Lagos, Nigeria. Data collected will be analyzed
using descriptive and inferential statistics. The relationship among constructs will be examined
using Structural Equation Modelling with the aid of SmartPLS software.
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