1. Supply Chain Management Competency and Firm Financial Success
- Author
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Frank G. Adams, Kevin O'Marah, Malini Natarajarathinam, Debra Hofman, Alexander E. Ellinger, and J. Brian Gray
- Subjects
Finance ,Supply chain management ,Altman Z-score ,business.industry ,Supply chain ,Working capital ,Delphi method ,Business, Management and Accounting (miscellaneous) ,Revenue ,Competitor analysis ,Business ,Management Science and Operations Research ,Shareholder value - Abstract
Supply chain management (SCM) plays a major role in creating (or destroying) shareholder value by influencing the three major drivers of firm financial performance: revenue, operating costs, and working capital. Yet, the relationship between SCM competency and firm financial performance is not well-established. Drawing on the resource-based view of the firm, this study assesses this relationship using Delphi-style opinion data from AMR Research’s Supply Chain Top 25 rankings to assess SCM competency and Altman’s (1968)Z-score statistic as the measure of financial success. The study findings show that firms recognized by industry experts for SCM competency have significantly higher Z-scores than their close competitors and industry averages.
- Published
- 2011
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