STRUCTURAL EQUATION MODELING OF SUPPLY CHAIN MANAGEMENT IMPACT ON FIRM PERFORMANCE

Abstract

Objective: This study aims to examine the impact of supply chain management (SCM) practices on firm performance within the agri-food industry, utilizing Structural Equation Modeling (SEM) to analyze the relationships between SCM factors and firm performance indicators.   Theoretical Framework: The study is grounded in the understanding that effective SCM practices can significantly influence firm performance in volatile and competitive markets, particularly within the agri-food sector.   Method: Data collection involved face-to-face questionnaires to ensure comprehensive responses from participants. Structural Equation Modeling (SEM) was employed for analysis, utilizing SmartPLS 3 software for data processing.   Results and Discussion: The results reveal significant positive relationships between SCM practices and firm performance indicators, including economic-financial and commercial dimensions. The discussion delves into the varying effect sizes observed and highlights the critical role of SCM in enhancing organizational outcomes.   Implications of the Research: This study offers valuable insights into strategies for improving operational efficiency and competitiveness within the agri-food industry, emphasizing the importance of effective SCM practices in driving firm performance.   Originality/Value: By shedding light on the interplay between SCM dynamics and firm performance in the agri-food sector, this research contributes to enriching our understanding of the field and provides practical implications for industry practitioners and policymakers.