The Impact of Production and Operations Management Practices in Improving Organizational Performance: The Mediating Role of Supply Chain Integration

Ammar Salah (), Dilber Çağlar and Khaled Zoubi
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Ammar Salah: Business Management Department, Girne American University, North Cyprus via Mersin 10, Kyrenia 99320, Turkey
Dilber Çağlar: Faculty of Business and Economics, Girne American University, North Cyprus via Mersin 10, Kyrenia 99320, Turkey
Khaled Zoubi: Department of Business Management, Irbid National University, Irbid 21110, Jordan

Sustainability, 2023, vol. 15, issue 20, 1-18

Abstract: While prior research has consistently established a significant link between production and operations management (POM) practices and organizational financial performance (OFP) across various contexts, the mechanisms driving this connection remain unclear. This study addresses this gap by examining the mediating role of supply chain management (SCM) integration in the relationship between POM practices and OFP within manufacturing firms. Drawing on established theories and concepts such as the resource-based view (RBV) of firm and operation strategies, this study employed a quantitative research design. Survey data were collected from 209 managers in Jordanian manufacturing firms and analyzed using structural equation modeling (SEM). The results confirmed a positive and significant association between POM practices and both SCM integration and OFP. Furthermore, SCM integration partially mediated the impact of POM practices on OFP, thereby underscoring its role in transmitting positive effects to financial performance. This research contributes to the field by integrating POM practices with SCM integration and by elucidating the mechanisms through which these practices influence financial performance in Jordanian manufacturing firms. Through this, our understanding of these relationships for practitioners and researchers alike is enhanced.

Keywords: production and operations management practices; supply chain management integration; organizational financial performance; structural equation modeling; Jordanian manufacturing firms (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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