EFFECTIVE FACTORS OF IMPLEMENTING EFFICIENT SUPPLY CHAIN STRATEGY ON SUPPLY CHAIN PERFORMANCE

Nowadays, the importance of supply chain management and its effect on business performance is undeniable. Boosting competitive environment makes every single firm adopt an assignable supply chain strategy. This study is one of the rare practical researches that recognize key factors related to the application of a successful and efficient supply chain strategy. So far, many researchers have conducted studies on responsive supply chain strategy; but in this study, it is sought to focus on efficient supply chain strategies due to increasing need for organizations to enhance efficiency and reduce costs. Structural equation modelling using SmartPLS software is used to examine the research assumptions. Analysis of the structural model showed that there is a positive relationship between implementation of efficient supply chain strategy with supply chain performance; therefore the main research hypothesis is confirmed. Research revealed internal integration, top management support and information technology as efficient supply chain characteristics that have positive effects on supply chain performance. To reduce costs of implementation of efficient supply chain strategy, it is necessary to invest in factors that influence supply chain performance positively.