The impact of supply chain management practices on organizational performances with special reference to the hotel industry in Sri Lanka

Abstract

Effective Supply Chain Management (SCM) has become an important tool of improving Organizational Performance (OP) and gaining competitive advantage. This study conceptualizes and develops five SCM dimensions; strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement and identify the impact of those practices on organizational performance. Data were collected from 50 hotels and structured questionnaire has used to collect date from respondents. Karl Pearson Correlation coefficient and multiple regression analysis was performed to identify the relationship and impact of SCM practices on organizational performances. The results indicate that SCM practices have discernible impact on organizational performance and increased organizational performance provides a firmly increased capital for the implementation of different SCM practices. In addition, the study identified financial performances as the most significant dimension affected by the SCM practices in the Hotel Industry of Sri Lanka than market performance. Hence, this research offers a supportive tool for SCM executives to evaluate the exhaustiveness of their current SCM procedures.