Supply chain strategy and organisational performance: role of core operational functions

The relationship among supply chain strategy, management of core operational functions and improvement in performance requires better understanding. Research framework in this paper, drawing from literature, seeks to establish and validate a theoretical model linking supply chain strategy, core operational functions and performance. The paper tests the theoretical model on empirical data from 296 companies from India and Pakistan using structural equation modelling. Empirical results of the study find a strong correlation between supply chain strategy and core operational functions. Further, the research finds positive impact of supply chain strategy on performance through core operational functions (except through the use of information technology). The data validates the theoretical basis of the constructs and shows supply chain strategy has an overall positive impact on multiple performance dimensions through strategically aligned core operational functions. Also, the paper discusses implications of the findings and ends with suggestions for future research.