Impact of Supply Chain Management Practices on Competitive Advantage and Organization Performance: Evidence from the Manufacturing Industry in Sri Lanka

This study was carried out to find the impact of supply chain management practices on organizational performance and competitive advantage among manufacturing organizations functioning under Board of Investment in Sri Lanka. Objective of the research was to find to what extent the supply chain management practices are used in these manufacturing organizations and the impact of the same on organization performance and competitive advantage. In addition to that, the influence of competitive advantage on organization performance also analyzed. Data was collected from 63 manufacturing organizations covering all sectors using a questionnaire distributed among most suitable respondents of relevant organization. Multiple regression analysis was sued to analyze the impact of supply chain management practices on organization performance. Mediator impact of competitive advantage on organization performance was found using Boot Strap analysis. The study clearly explained that there is a significant relationship between supply chain management practices and organizational performance through five independent variables namely strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing and postponement. In addition to that, results also revealed that competitive advantage partially mediates the relationship between supply chain management practices and organization performance.