Causal linkages between supply chain management practices and performance: a balanced scorecard strategy map perspective
- Information sharing
- Structural equation modelling
- Supply chain management practices
- Balanced scorecard strategy map
- Supplier partnership
- Customer orientation
Purpose – The purpose of this paper is to empirically investigate, from a balanced scorecard strategy map perspective, the types of linkages – sequential, non-sequential, intra-dependent, and reverse – through which supply chain management practices (SCMP) impact on financial and non-financial performance, and consequently lead to the achievement of the firm’s strategic objectives. Design/methodology/approach – This study is carried out in two stages. Firstly, based on the survey data collected from 450 French industrial firms (with a return rate of 20.2%), structural equation modelling (SEM) is used to test eight hypotheses that are formulated through the discussion of previous theoretical and empirical findings in extant literature. Then, based on the framework of the balanced scorecard strategy map, the SEM results are used to discuss the linkages between SCMP and firm performance. Findings – After confirming some of the relationships already observed in extant literature, our results show that there are many strategic paths (of different nature) that link supply chain management practices and other intangible assets to financial performance. Practical implications – The results of our study constitute a practical contribution that would guide managers in the strategic alignment of their firm’s supply chain initiatives with corporate strategy. We argue that when implementing SCM initiatives, managers should pay particular attention to how intangible assets act as mediating factors in the achievement of the firm’s financial objectives. The BSC framework that we propose can also be used by researchers to investigate causal linkages between intangible and tangible assets. Originality/value – There are few studies that adopt an extensive multi-dimensional approach by looking simultaneously at both upstream and downstream linkages of the supply chain while taking into account many performance measures. Using the balanced scorecard strategic map framework, this paper proposes eight types of linkages that could lead to the achievement of the firm’s strategic goals.