Multi-Group Moderating Effect of Goods Produced in theManufacturing Industry: Supply Chain Management Context

Abstract

The purpose of this research paper is to explore the

moderating effects of goods types produced on the

relationship between supply chain management and

performance of the manufacturing industry.

Based on the review of literature relating to supply

c h a i n m a n a g e m e n t a n d p e r fo r m a n c e o f

manufacturing firms, a conceptual model was framed

and the resulting hypotheses were empirically tested

using structural equation modelling (SEM). Primary

data was collected using the personal interview

method from the executives of manufacturing firms by

administering a well structured questionnaire. This

data was tested for the moderating effects of goods

produced by manufacturing firms. The finding depicts

that the types of goods produced by manufacturing

firms act as a significant moderating effect on the

relationship among supply chain management and

performance.

Key words: Supply Chain Management, Moderating

effects, Performance, Path Analysis.

ISSN: 0971-1023 | NMIMS Management ReviewVolume XXV October-November 2014

Multi-Group Moderating Effect of Goods Produced in the Manufacturing Industry:

Supply Chain Management Context

C. GaneshkumarG. Mathan Mohan

T. Nambirajan

10 11ISSN: 0971-1023 | NMIMS Management ReviewVolume XXV October-November 2014

Multi-Group Moderating Effect of Goods Produced in theManufacturing Industry: Supply Chain Management Context

1. Introduction

The value of the Indian consumer market is almost 250

billion USD. The Indian logistics segment is nearing

intonation and value of the world logistics industry is

almost USD 3.5 trillion. The cost of logistics generally

ranges from 9 to 20% of GDP. The Indian logistics

market contributes almost 13% of GDP and the market

is expanding at a whopping rate of 20% (Sahay and

Mohan, 2003). India is attracting enormous FDI,

especially in automobile and electronics industries.

This is projected to have a favourable effect on growth

of the country. The Government's proposal to allow

FDI in the retail sector is anticipated to have a major

impact on the economy. Furthermore, development of

organised retailing and agricultural processing

activities is expected to exert a significant effect on

economic growth. The country is highly blessed with

enormous human, technological and methodical

resources. High entrepreneurial talent is available

abundantly in the country. Developments in the

economy such as economic reforms, growth in

productivity, cheap credit, rising income of the middle

class, introduction of Value Added Tax (VAT) and a

growing educated middle class fuels consumption,

which enhances production, and subsequently the

growth of the economy. The challenges posed by the

aforementioned discussion can be well countered by

Indian manufacturing enterprises only if their quality

and service is dramatically enhanced. Towards this

endeavour, it becomes inevitable to address the

defic iencies encountered by manufacturing

enterprises on their SCM front. Only this will render

the Indian manufacturing enterprises viable and

competitive in the liberalized and globalised scenario.

In light of the above situation, it has become inevitable

for business firms to focus strictly on SCM to ensure

that they are not eroded by the highly competitive

global environment. Consequently, Indian companies

have initiated measures placing utmost importance to

master the SCM process. Numerous research studies

have been conducted in the field of SCM and Indian

enterprises have to comply with the requisites spelt

out in these research studies about their respective

SCM practices and adopt an effective SCM which is

compatible with the Indian scenario. Innovative,

unique and superior supply chain practices adopted by

some Indian cases and companies such as Amul, the

Shakti project of Uniliver, Dabbawalas of Mumbai,

Asian Paints and Marico industries have enabled their

companies to outsmart their competitors and manage

better profitability and counter the extensive

competition waged in the current LPG scenario.

Despite numerous research studies involving SCM

being conducted in the western countries, Indian

enterprises have not tuned their SCM process at par

with their western and other Asian counterparts. This

is attributed to the fact that foreign studies on SCM

have yielded strong theoretical knowledge but this

cannot be replicated to the Indian context blindly.

Results of the western authors have to be suitably

customized to aptly suit the Indian environment. This

requires a comprehensive study on the various factors

which impact SCM practices of Indian firms and the

inter-relationships of these factors have to be studied

closely by giving due importance to the Indian context.

Consequently, studies concentrating on the post-

liberalization SCM functions of manufacturing firms

have started gaining momentum. The proposed

research aspires to address the research gap existing in

India by providing a theoretical framework regarding

the various components related to SCM in India and

their impact on the organizational performance of the

manufacturing firms. The research article is structured

as follows: First, we have framed the theoretical

support of this research work and prose of the

Changes

cities of India, and therefore street

Contents

mall farmers. Majority of the

farmers (82%) borrow less than

Rs 5 lakhs, and 18% borrow

between Rs 5 10 lakhs on a

per annum basis. Most farmers

(65.79%) ar

** p < .01 + Reliability coefficie

** p < .01 + Reliability coefficie

References

Table 23: The Results of Mann-Whitney U Test for DOWJONES Index Daily Returns

Multi-Group Moderating Effect of Goods Produced in theManufacturing Industry: Supply Chain Management Context

Abstract

The purpose of this research paper is to explore the

moderating effects of goods types produced on the

relationship between supply chain management and

performance of the manufacturing industry.

Based on the review of literature relating to supply

c h a i n m a n a g e m e n t a n d p e r fo r m a n c e o f

manufacturing firms, a conceptual model was framed

and the resulting hypotheses were empirically tested

using structural equation modelling (SEM). Primary

data was collected using the personal interview

method from the executives of manufacturing firms by

administering a well structured questionnaire. This

data was tested for the moderating effects of goods

produced by manufacturing firms. The finding depicts

that the types of goods produced by manufacturing

firms act as a significant moderating effect on the

relationship among supply chain management and

performance.

Key words: Supply Chain Management, Moderating

effects, Performance, Path Analysis.

ISSN: 0971-1023 | NMIMS Management ReviewVolume XXV October-November 2014

Multi-Group Moderating Effect of Goods Produced in the Manufacturing Industry:

Supply Chain Management Context

C. GaneshkumarG. Mathan Mohan

T. Nambirajan

10 11ISSN: 0971-1023 | NMIMS Management ReviewVolume XXV October-November 2014

Multi-Group Moderating Effect of Goods Produced in theManufacturing Industry: Supply Chain Management Context

1. Introduction

The value of the Indian consumer market is almost 250

billion USD. The Indian logistics segment is nearing

intonation and value of the world logistics industry is

almost USD 3.5 trillion. The cost of logistics generally

ranges from 9 to 20% of GDP. The Indian logistics

market contributes almost 13% of GDP and the market

is expanding at a whopping rate of 20% (Sahay and

Mohan, 2003). India is attracting enormous FDI,

especially in automobile and electronics industries.

This is projected to have a favourable effect on growth

of the country. The Government's proposal to allow

FDI in the retail sector is anticipated to have a major

impact on the economy. Furthermore, development of

organised retailing and agricultural processing

activities is expected to exert a significant effect on

economic growth. The country is highly blessed with

enormous human, technological and methodical

resources. High entrepreneurial talent is available

abundantly in the country. Developments in the

economy such as economic reforms, growth in

productivity, cheap credit, rising income of the middle

class, introduction of Value Added Tax (VAT) and a

growing educated middle class fuels consumption,

which enhances production, and subsequently the

growth of the economy. The challenges posed by the

aforementioned discussion can be well countered by

Indian manufacturing enterprises only if their quality

and service is dramatically enhanced. Towards this

endeavour, it becomes inevitable to address the

defic iencies encounte