SCM Practices and Market Orientation Strategy to Model Firm Performance

Abstract

In contemporary business environment, it is essential for a business to attain and retain customer
satisfaction so that it results in organizational performance improvement. Supply chain
management (SCM) is an important strategy to foster performance in the organization. On the
other hand, literature posits that market orientation (MO) is more likely to produce fruitful results
for organizational performance. MO is the identification of the hidden needs and wants of the
firm’s customer and what customer is demanding and preferring should be accounted by the firm to
facilitate its customer. SCM is a strategy that has a set of activities from supplier to end user. These
set of stages contain supplier, manufacturer, wholesaler, distributor, retailer, and customer. The
purpose is to investigate the relationship of SCM practices (SCMP) and MO with connection to
organizational performance. As well as this study investigates the relationship of SCMP with
customer satisfaction, MO with customer satisfaction, and by mediation of customer satisfaction
within the relationship of SCMP and MO with organizational performance. This study targets
multiple industries of Pakistan in order to inspect the mediating role of customer satisfaction in
relationship of SCMP and MO with organizational performance. The questionnaire survey is used
to collect data from 113 organizations. Results suggest that SCMP and MO improves the
organizational performance. Customer satisfaction mediates between the relationship of SCMP
and MO with organizational performance.