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Supply Chain Management Practices, Competitive Advantages and Firm Performance: A Case of Small and Medium Enterprises (SMEs) in Vietnam



Author(s)

Duong Vu Xuan Quynh, Nguyen Hoang Huy

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DOI:10.17265/1548-6583/2018.03.004

The perception of supply chain management (SCM) first appeared in 1982 and the very first papers on SCM were published in the mid 1980s (Houlihan, 1985). However, this term is still fresh in Vietnam, especially the subject of SCM practices and their impacts on firm performance of small and medium enterprises (SMEs). Therefore, the research was conducted to study the impact of supply chain management practices (SCMPs) on firm performance of SMEs through firm competitive advantages. Data were collected by surveying SMEs located in Ho Chi Minh City. The research findings showed that customer relationship (CR) and quality of information sharing (IQ) impact on firm performance at 0.01% significance level while the level of information sharing impacts on firm performance at 10% significance level, and strategic supplier partnership impacts on firm performance insignificantly. Moreover, we also found that customer relationship and quality of information sharing influence firm competitive advantage at 0.01% significance level, while strategic supplier partnership and the quality of information sharing impact on firm competitive advantage at 5% significance level. Competitive advantages impact significantly positively on firm performance at significance level of 0.001%. The findings imply that SMEs in Vietnam should manage customer relationship well and increase the level of information quality to improve competitive advantage in order to gain high performance

SCM practices, competitive advantages, firm performance, SMEs, Vietnam