Mediating and moderating influencers of firm performance : Supply chain managers perspective

Abstract

Purpose

The purpose of this paper is to conduct an exploratory study that will assist supply chain firms in the development of partner satisfaction, flexibility, and supply chain performance. The authors examine how the interaction of information exchange, partner interaction, knowledge sharing and flexibility as mediated through partner satisfaction effectuates firm performance. The goal of this research is to answer the supply chain managers’ need to better understand where to invest their time and effort to get improved firm performance.

Design/methodology/approach

The model was tested with panel data from 105 experienced, US-based supply chain managers. Structural equation modeling using partial least squares approach was utilized to conduct the analysis.

Findings

The results provide crucial evidence that simple information exchange among supply chain partners does not result in improvements in firm performance or partner satisfaction, but, when mediated through the flexibility construct, it does. Further, the use of integration tools has a moderating effect on the relationship between flexibility and firm performance. The results suggest that working closely with supply chain partners helps ensure improved relationship satisfaction, and can reduce issues that can impact firm performance.

Research limitations/implications

The empirical research presented requires additional validation though larger sample data from supply chain managers.

Practical implications

This study stresses on the importance of managers using information exchange, partner interaction, and knowledge sharing as a means of improving their firm’s indirect influence on firm performance through flexibility and integration tools.

Originality/value

This is one of the few studies in the supply chain literature that integrates flexibility as a mediator variable. Additionally, this study introduces the new construct of integration tools to the supply chain literature.