An Empirical Analysis of the Financial Impact of Supply Chain Management on Small Firms

James C. Brau, Stanley E. Fawcett and Ladd Morgan
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James C. Brau: Brigham Young University
Stanley E. Fawcett: Brigham Young University
Ladd Morgan: Brigham Young University

Journal of Entrepreneurial Finance, 2007, vol. 12, issue 1, 55-82

Abstract: In this article we test the value proposition hypothesis of supply chain management (SCM) by examining survey results of 570 US managers. First, we find that large firms use SCM initiatives significantly more than small firms. Second, in univariate and multivariate tests, we find that SCM leads to significant improvements in asset utilization, revenue generation, and competitive performance, regardless of firm size. These two major findings suggest that managers at small firms that are not actively engaged in SCM should reevaluate their opportunity to capture the competitive benefits of SCM that many large firms currently enjoy.

Keywords: supply chain management; SCM; small business (search for similar items in EconPapers)
JEL-codes: L23 M11 M13 (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pep:journl:v:12:y:2007:i:1:p:55-82

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