Supply Chain Activities and Financial Performance: The Role of Top Management Support

Document Type : Original Article

Authors

1 Department of Accounting, Aliabad Katoul branch, Islamic Azad University, Aliabad Katoul, Iran.

2 Department of management , faculty of social sciences and economics , Alzahra University, Tehran, Iran.

10.30495/ijfma.2023.64239.1769

Abstract

The purpose of this study was to investigate the impact of supply chain activities on firm financial performance with respect to the role of top management support. In this regard, the financial information of 165 companies among the companies listed on the Tehran Stock Exchange was evaluated. Financial performance improvement is considered as a dependent variable, supply chain activities and top management support are considered as the main independent variables and the financial structure and firm size are considered as control variables. In order to measure the variables of supply chain activities and top management support, a survey has been used for these companies’ managers. After performing diagnostic tests, structural equation pattern and composite regression have been used to determine the relationship between variables. Data analysis showed that supply chain activities in all three dimensions of suppliers, Intra-organizational and customers lead to improved financial performance with measures of sales return, return on investment and return on equity. Additional analysis confirmed the moderating role of top management support.

Keywords

References

Anderson, S. W., & Dekker, H. C. (2009). Strategic cost management in supply chains, part 1: structural cost management.Accounting Horizons, 23(2), 201-220.
2) Araghi, N., Nikoomaram, H., & Ghaffari, F. (2018).. Improved Profitability and Competition in Two Level Supply Chain by Non-Cooperative Games. International Journal of Finance and Managerial Accounting, Vol.3, No.11, 59-70.
3) Boiral, O., & Henri, J.-F. (2012). Modeling the impact of ISO 14001 on environmental performance: a comparative approach. Journal of Environmental Management, 99, 84-97.
4) Chenhall, R. H. (2007). Theorising contingencies in management control systems research. In C. S. Chapman, A. G. Hopwood, & M. D. Shields (Eds.), Handbook of management accounting research. Oxford, UK: Elsevier.
5) Delnavaz, B., & Fallah, M. (2019). Studying Volatility Risk Transmission in Automatable Supply Chain Companies in the Tehran Stock Exchange. International Journal of Finance and Managerial Accounting, Vol.3, No.12, 19-31.
6) Fayard, D., Lee, L. S., Leitch, R. A., & Ettinger, W. J. (2012). Effect of internal cost management, information systems integration, and absorptive
capacity on inter-organizational cost management in supply chains. Accounting, Organizations and Society, 37(3), 168.
7) Ghasempoor Anaraki, M., Vladislav, D.S., Karbasian, M., Osintsev, N., & Nozick, V.(2021). Evaluation and selection of supplier in supply chain with fuzzy analytical network process approach. Journal of Fuzzy Extension & Applications (JFEA), 2(1), 69-88.
8) Haghighi Nasab, Manijeh; Rostami, Mohammad Reza; Khobakht, Farzaneh and Hakimifar, Nazanin (2019). The Impact of Relationship Marketing on the Financial Performance of Companies Listed on the Stock Exchange, Journal of Management Accounting, Volume 12, Number 42, 27-42.
9) Hajiha, Zohreh and Sarkhani Ganji, Hamid Reza (2020), Investigating the role of management accounting mediation on the relationship between cost system design and company performance, Journal of Management Accounting, Volume 13, Number 44, 41-53.
10) Henri, J.-F., Boiral, O., & Roy, M.-J. (2014). The
tracking of environmental costs: motivations and impacts.European Accounting Review, 23(4), 647-669.
11) Henri J.F., Boiral O., Roy M.J. (2015). Strategic cost management and performance: The case of environmental costs, The British Accounting Review xxx (2015) 1-14.
12) Khlilzade, R., Saeidi, P., Naderian, A., & Abbasie, I.(2021). Designing a model for financial agility of supply chain process. Journal of Decisions and Operations Research (dmor), 6(3), 445-463.
13) Kim, S.W. (2006). The effect of supply chain integration on the alignment between corporate competitive capability and supply chain operational capability. International Journal of Operations & Production Management, 26(10), 1084- 1107.
14) Koh, S.C.L., Demirbag, M., Bayraktar, E., Tatoglu, E., & Zaim, S. (2017). The impact of supply chain management practices on performance of SMEs. Industrial Management & Data Systems, 107 (1), 103-124.
15) Lord, B. R. (1996). Strategic management accounting: the emperor's new clothes?Management Accounting Research,7, 347-
366.
16) Lotfi, R., Mehrjerdi, Y. Z., Pishvaee, M. S., Sadeghieh, A., & Weber, G. W. (2021). A robust optimization model for sustainable and resilient closed-loop supply chain network design considering conditional value at risk. Numerical Algebra, Control & Optimization, 11(2), 221.
17) Nazaripour, Mohammad and Mirzaei, Fahimeh (2019). Investigating the Impact of Strategic Cost Management on Financial Performance with Emphasis on Environmental Costs, Industrial Management Studies, Volume 16, Number 51, Winter 2019, 207-234.
18) Nozari, H., & Ghahremani-Nahr, J. (2021).Provide a framework for implementing agile big data-based supply chain (case study: FMCG companies). Innovation management and operational strategies, 2(2), 128-136.
19) Pourzarandi, M.E., Askaryan, B., & Monfared, J.H. (2021). Provide a mathematical model for a specific order to the drug supplier in the supply chain. International Journal of Finance and Managerial Accounting, Vol.6, No.24, 217-225.
20) Rezaee, Z. (2018). Integrating Business
258 / Supply Chain Activities and Financial Performance: The Role of Top Management Support(TMS)
Vol.8 / No.30 / Summer 2023
Sustainability into Supply Chain Management. International Journal of Finance and Managerial Accounting, Vol.3, No.9, 1-15.
21) Roslender, R., & Hart, S. J. (2003). In search of strategic management accounting: theoretical andfield study perspectives.Management Accounting Research, 14, 255-279.
22) Ruan, S. (2020, April). Research on Strategic Cost Management of Enterprises Based on Porter’s Value Chain Model. In Journal of Physics: Conference Series (Vol. 1533, No. 2, p. 022056). IOP Publishing,391-399
23) Shabani Khfari, G., Noravesh, I., & Panahian, H. (2020). Supply Chain Cost Estimation Model for Dashboard Management Design. International Journal of Finance and Managerial Accounting, Vol.5, No.17, 19-31.
24) Tracey, M., Lim, J.S., & Vonderembse, M.A. (2018). The impact of supplychain management capabilities on business performance. Supply Chain Management: An international journal, 10(3), 179-191.
25) Tseng, M.L., Islam, M. S., Karia, N., Fauzi, F.A., & Afrin, S. (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling. 141, 145-162.
26) Turner, M.J., Way S.A., Hodari D., Wittemanc, W. (2017). Hotel property performance: The role of strategic management accounting, International Journal of Hospitality Management 63 (2017) 33–43.
27) Wisner, P. S., Epstein, M. J., & Bagozzi, R. P. (2006). Organizational antecedents and consequences of environmental performance. Advances in Environmental Accounting & Management, 3, 143-167.
28) Wu, N., Yuan, Q., Xiao, M., Zhao, Y., & Chen, X. (2020). The Application of Value Chain Cost Management in M Company. MS&E, 768(5), 052029.
29) Zhao, G., Feng, T., & Wang, D. (2015). Is more supply chain integration always beneficial to financial performance? Industrial

Files

Share

How to cite

Statistics