Supply Chain and Operations Practice and Performance in Chinese Furniture Manufacturing

Abstract

The relationship between supply chain/operations practice and operational/financial performance has been of interest to academics and practitioners for many years. We propose and develop a model exploring these connections, utilising data from a survey of 72 furniture manufacturers located throughout China. The industry is of particular interest in that, while labour productivity remains relatively low, exports have undergone substantial growth. Using a structural equation model (significant at p = 0.05), we highlight the relative importance of supply chain and operations practices and show that the impact of practice on business performance is mediated by capabilities on operations dimensions.