Supply Chain Management Practices and Firm Performance: the moderating effect of Organizational Learning Capability

Abstract

A crucial factor influencing the effectiveness of supply chain management practices is organizational learning capability which refers to an organization’s ability to create, retain, and transfer knowledge. High organizational learning capability enables continuous improvement and innovation in SCM processes, leading to better firm performance. However, many organizations lack the necessary learning culture and mechanisms to fully leverage organizational learning capability for supply chain management practices enhancement. The main objective of the study was to examine the moderating effect of organizational learning capability on the relationship between supply chain management practices and firm performance. An explanatory research design was employed through a cross sectional survey. The study adopted convenience sampling to obtain a sample size of 130. The study solely relied on quantitative approach and primary source of data. The findings of the study revealed that that organizational learning capability has a positive and significant influence on firm performance. Supply chain management practices have positive and significant influence on firm performance. The study finally indicate that organizational learning capability positively moderates the relationship between supply chain management practices and firm performance. The study recommends that organizations should provide ongoing training and development opportunities for employees to enhance their skills and knowledge in supply chain management. Promote a culture of knowledge sharing and collaboration to leverage collective expertise and insights. Apply lean principles to eliminate waste and enhance value creation throughout the supply chain. Foster a culture of continuous improvement to identify and address inefficiencies and opportunities for enhancement. Utilize data analytics to inform strategic decisions and optimize supply chain performance. Establish and track key performance indicators (KPIs) to monitor supply chain efficiency and effectiveness. Maintain open and transparent communication channels within the organization and with external partners to facilitate coordination and problem-solving. Implement feedback mechanisms to gather insights and make adjustments to improve supply chain processes and performance. Ensure that supply chain management practices are aligned with the overall business strategy and objectives to drive cohesive and strategic performance improvements. Integrate supply chain goals with broader organizational goals to ensure that supply chain activities contribute to overall business success.

Keywords: Supply Chain Management Practices, Firm Performance, Organizational Learning Capability