Performance Measurement of Supply Chain Management: An Exploratory Study on the Relationships among Performance Measures

This study aims to investigate the constructs of, and develop a measurement instrument for, supply chain management (SCM) performance. Based on the methodology of the SCOR model and the balanced scorecard approach, a SCM performance measurement system and its measurement instrument are developed, which is constructed by four constructs: logistics performance, supply chain external integration, supply chain internal integration, and implementation of information technologies. Analyzing the data collected from 182 Chinese companies suggests that the measurement instrument is reliable and valid, and consequently can be used as an effective self-evaluating tool for measuring SCM performance. In the end, the relationships among the four constructs of SCM performance measurement are empirically explored. The results indicate that: (1) IT implementation has no direct effect on logistics performance, but instead that it enhances logistics performance through its positive effect on both supply chain external and internal integration; (2) supply chain external integration positively associates to logistics performance, however, its impact on logistics performance is mediated by supply chain internal integration. These findings highlight the importance for companies to promote supply chain external/internal integration and implement IT as an enabler.