Supply chain management practices and organizational performance in a turbulent environment: the case of Palestinian contracting sector

Purpose Investigating organizational performance through supply chain management (SCM) practices is of strategic importance in Palestine’s fragile and politically unstable context. This study examines the impact of five SCM practices, including strategic supplier partnerships, customer relationships, information sharing, information quality, and postponement on organizational performance (OP) in Palestinian contracting firms. It also investigates the moderating role of company grade on these relationships. Design/methodology/approach This study employed a descriptive, cross-sectional quantitative design using a structured survey distributed to contracting firms registered with the Palestinian Contractors Union in the West Bank. Data were collected from 123 valid responses between October 2022 and October 2023. The data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4. Findings Customer relationships, information sharing, and information quality have been significantly enhanced to improve customer satisfaction. Strategic supplier partnerships and customer relationships have a positive influence on financial performance. Postponement strategies did not have a significant effect on either performance dimension. The contractor grade did not moderate the SCM–OP relationship but had a direct influence on performance. Originality/value This study advances academic understanding of SCM performance dynamics by contextualizing performance management in politically volatile environments. It contributes novel insights on how supply chain practices can be adapted for sustained financial and customer-oriented performance in construction-centric economies. By integrating resource-based, network, and dynamic capability perspectives, this research deepens theoretical discourse on performance management under constraints. This challenges the universal applicability of SCM practcies and highlights the need for adaptive, context-specific performance management frameworks that prioritize relationship management and information quality. The findings offer both academic and practical insights, enriching supply chain performance literature in developing economies.