The Relationship between Supply Chain Management Practices and Supply Chain Performance in Saudi Arabian Firms

The purpose of this study was to investigate the relationship between supply chain management practices (SCMPs) and supply chain performance (SC performance) within different industries in the Kingdom of Saudi Arabia. An empirical study was conducted on a sample of 196 firms; information was collected from the supply chain managers and those in top management in different industries in the Kingdom of Saudi Arabia. In addition to a series of interviews conducted with managers of the supply chains, a theoretical model was developed depicting the relationship between SCMPs and supply chain performance (SC performance). This model was also tested using multiple regression analysis. The research suggests that SCMPs, including supply chain planning (SC planning), level of information sharing (IS), customer relationship management (CRM), and supplier relationship management (SRM) are all positively related to SC performance. Additionally, SC performance is positively related to FFP. The research employed perceptual performance measures to gauge return on investment, revenue, and sales. Future studies could use actual numbers to better quantify the benefits within this context.