Structural Equation Model on Supply Chain Performance of the Manufacturing Sector: An Explanatory Sequential Mixed Methods Study
1Melecio A. Sy, Jr.,2Gloria P. Gempes
1Melecio Sy Jr. is with the University of the Immaculate Conception, Davao City, Philippines.
2Gloria P. Gempes is a professor of the University of the Immaculate Conception, Davao City, Philippines.
https://doi.org/10.47191/jefms/v6-i7-04ABSTRACT:
Supply Chain Performance (SCP) is affected by factors including supply chain structure, market conditions, among others. SCP will define profitability, growth, and sustainability, but is varied in level among different industries. The primary purpose of this explanatory sequential mixed-methods study was to determine the best fit model of Supply Chain Performance (SCP) in the manufacturing sector of Region XI in the Philippines. The survey was administered to 332 manufacturing companies across the region employing stratified random sampling. After analyzing the quantitative data through structural equation modeling, us17 interviewees selected from the 332 respondents, were subjected to an in-depth interview, and focus group discussion for validation of the results. The data obtained from the interview were analyzed through thematic analysis. The quantitative results revealed that out of the five exogenous variables tested for the best fit model on SCP, only three came out as having direct influence, to wit: buyer-supplier relationship (BSR), integrated information system (IIS) as the best predictor, and logistics performance (LP). The modest direct influence of LP on SCP was strengthened with its indirect influence through IIS. Thematic analysis of the qualitative data unveiled the essential themes generally confirming the best fit model and its particulars. Connecting-merging-confirmation surfaced as the nature of data integration.
KEYWORDS:
business management, structural equation modeling, buyer-supplier relationship, integrated Information system, logistics performance, supply chain performance, Philippines.
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