THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT STRATEGIES ON OPTIMISING ORGANISATIONAL POTENTIAL IN CHINESE ENTERPRISES: THE MEDIATING EFFECTS OF CUSTOMER SATISFACTION AND EMPLOYEE ENGAGEMENT.

Abstract

To gain a competitive advantage and realise their full potential, Chinese companies are using Supply Chain Management strategies. The intricate connection between SCM methods and organisational performance is explored in this study, with a focus on the moderating roles of customer satisfaction and employee engagement. Using a mixed-methods technique, data was collected from a diverse group of medium- to large-sized firms across several industries in China. Both quantitative analyses using structural equation modelling (SEM) and qualitative interviews with supply chain managers concluded that strong SCM strategies—including demand forecasting, supplier relationship management, logistics optimisation, and technology integration—have a positive impact on organisational effectiveness. Customer satisfaction significantly mediates the link between SCM efficiency and organisational performance, according to the study. This is because simpler supply chains improve service quality, delivery speed, and responsiveness. When workers are invested in the process, they learn their jobs better, collaborate more efficiently, and experience greater intrinsic motivation, all of which contribute to a more efficient supply chain. SCM two-pronged impact goes far beyond its ability to revolutionise operational efficiency; it also has far-reaching effects on business culture and customer relationships. Based on the findings, Chinese businesses aiming for global competitiveness would do well to adopt integrated supply chain management techniques and foster a work environment that places equal importance on people and consumers. As China’s business climate changes, researchers build on previous knowledge by creating a comprehensive model that links SCM practices to internal and external performance determinants. This provides practitioners and policymakers with useful information.