The relationship between supply chain manager capabilities and performance: empirical evidence

Abstract

This study seeks to answer the question how supply chain managers’ capabilities impact individual and firm performance. Organisations have begun to recognise the importance of their supply chain and the necessity for qualified supply chain managers. Therefore, there is a need for further research on the impact of these capabilities on individual and firm performance. Sustained performance of a firm depends on dynamic capabilities and it allows firms to align and adapt strategies according to the volatile external environment. Using dynamic capabilities theory, the supply chain manager capabilities model was developed as a way for supply chain managers to effectively use their skills and past experiences to improve their own and firm’s performance. Primary data was collected through a survey distributed to supply chain management professionals. The results strongly support the relationship between technology and soft skills with supply chain manager capabilities. Interestingly, our study identifies sequential relationship amongst the three constructs such as capabilities, individual and firm performance. Capabilities are related with individual performance whereas individual performance is related with the firm performance. However, our findings revealed that there is no direct relationship between supply chain manager capabilities and firm performance.

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