Moderating effect of supplier relationship on the relationship between supply Chain planning systems and supply chain organizational performance

Abstract

The aim of the study was to determine moderating effect of supplier relationship(SR)on the relationship between supply chain planning systems(SCAPS)and supply chain organizational performance(SCOP).The study was grounded by transactional cost theory, Balance scorecard, dynamic capability theory and network theory. The studyemployed explanatory research design. A target population of 591 manufacturingfirms of sample of 233 firms were studied. Questionnaires was used as a method of collecting data. The collected data was analyzed using multiple regression models. Results showed that supply advanced planning system significantly influences supply chain organizational performance positively (). Further, the effect of SR (moderating effect of SR) on relationship between SCAPS and SCOP was strongly positive ( . In conclusions that supply chain advanced planning improves performance of the overall value of the supply chain by reducing costs and increasing efficiencywith leaner operations. It also balances supply and demand to maximise productivity gains and manage timely contributions to business operations. It is an incredibly significant for manufacturing firms to enhance supply chain organizational performance of the firms competing in global markets to respond to the competitive challenges they encounter in the industry and leveraging these skills to gain a competitive advantage over other.