An Exploratory Study of the Relationship between Supply Chain Management Practices and Technical Efficiency of Jordanian Manufacturing Companies

Loay Salhieh


Recent arguments states that competition is no longer between organizations, but among supply chains to
support different competitive priorities. Effective supply chain management (SCM) practices have become a
recognized way of achieving competitive advantage and improving organizational financial performance. This
paper presents an exploratory study of the relationship between (SCM) practices and organizational financial
performance. Although research on the relationship was investigated by relating SCM practices and single
organizational financial performance, but no research have surrogated many organizational financial
performance in one measurement. Technical efficiency was used to surrogate organizational financial
performance of Jordanian manufacturing companies. Data for the study was collected from 28 manufacturing
companies registered in first market of Amman Stock Exchange. The results indicate a strong relationship
between SCM practices and bottom-line profits of an organization.

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