How Do Supply Chain Management Practices Influence Organizational Performance? A Case Study of Bangladesh's Agro-Food Industry

Abstract

Introduction: Supply chain management practices are essential for enhancing organizational performance, particularly in the Agro-food industry. This study examines the impact of specific SCM factors—Strategic Supplier Partnership, Customer Relationship, Level of Information Sharing, and Quality of Information Sharing—on organizational performance in Bangladesh. Methodology: Data were collected via a structured questionnaire targeting key stakeholders in Bangladesh's Agro-food industry, using a 5-point Likert scale to measure responses. Structural equation modeling (SEM) was utilized to analyze the relationships between SCM practice factors and organizational performance factors such as marketing and financial performance. Findings: The analysis revealed that customer relationships, quality of information sharing, and strategic supplier partnerships have significant positive relationships with organizational performance, particularly in terms of financial and marketing outcomes. However, the level of information sharing did not show a significant impact on both financial and marketing performance. Managerial Implications: The study emphasizes the significance of prioritizing strategic supplier partnerships, customer relationships, and high-quality information sharing for improving organizational performance in Bangladesh's Agro-food industry. Strengthening these SCM practices can lead to better financial and marketing performance, providing valuable insights for managers to develop targeted strategies.