THE IMPACT OF SUPPLY CHAIN MANAGEMENT STRATEGIES ON MAXIMISING ORGANISATIONAL POTENTIAL IN CHINESE FIRMS: THE MEDIATING ROLE OF CUSTOMER SATISFACTION AND EMPLOYEE ENGAGEMENT.

Abstract

Supply Chain Management methods are being used more and more by Chinese enterprises to get competitive advantages and maximise organisational potential in the ever-changing world of global commerce. Using customer happiness and staff engagement as mediators, this research delves into the complex ways in which SCM methods affect organisational success. A mixed-methods approach was used to gather data from a cross-section of Chinese businesses ranging in size from medium to big and operating in a wide variety of sectors. The results of quantitative analysis using structural equation modelling (SEM) and qualitative interviews with supply chain managers show that effective supply chain management strategies have a positive impact on organisational effectiveness. These strategies include demand forecasting, supplier relationship management, logistics optimisation, and technology integration. As a result of improved service quality, delivery speed, and responsiveness brought about by simplified supply chains, the research concludes that customer satisfaction plays a mediating role in the link between SCM effectiveness and organisational success. At the same time, employee involvement is a key internal mediator in an effective supply chain, which in turn leads to better job descriptions, more teamwork, and higher morale. By illuminating its wider influence on corporate culture and customer connections, the two mediating effects demonstrate that SCM’s strategic worth extends beyond operational efficiency. The results indicate that if Chinese companies want to be more competitive on a global scale. As a result, practitioners and policymakers in China’s dynamic business landscape may benefit from the actionable insights provided by this model.