The influence of selected supply chain management practices on SMEs performance: the mediating role of competitive advantage

PurposeThe purpose of this study is to identify the impact of selected supply chain management practices (SCMPs) on firm performance (FP) and the role of competitive advantage (CA) as a mediator between SCM practices and FP, with particular reference to small and medium enterprises (SMEs) operating in the West Bank.Design/methodology/approachData were collected from 213 owners and supply chain managers of SMEs from various industries via questionnaires. The data collected were analyzed by using Smart PLS software to test hypotheses in the theoretical model based on structural equation modeling analysis.FindingsThe results of this study indicated that customer relationship management (CRM), supplier partnership (SP), e-procurement (EP) and postponement (PO) have a positive impact on FP and CA in SMEs. In contrast, information sharing (ISH) has an insignificant relationship with SMEs' performance and CA.Research limitations/implicationsThis study examines only five SCM practices. FP was measured by financial factors. Thus, non-financial success metrics must assess intangible benefits. This study focused on the West Bank and ignored Gaza Strip because of its circumstances.Originality/valueMost studies on SCM and FP have focused on large companies. It ignored SMEs despite their importance. There is very little study on SCM practices and FP using CA as a mediator. Despite the importance of SCM, CA and SMEs in Palestine, scholars have not paid enough attention to them. To the best of the authors' knowledge, this is the first Palestinian study to examine SCM practices influence on FP using CA.