Strategic Fit and Supply Chain Performance (SCP): The Effect of Supply Chain Management (SCM) as The Mediator

Based on previous research, strategic fit among behavioural orientations can generate the behavioural planned to ensure the viability and performance of the firm. It is also mentioned before that behavioural orientation can also support company in increasing the supply chain performance. However, although behavioural orientation gives positive impact to SCP, companies are still challenged with issues such as, distortion of information, collaborative behaviours and many more that need to be managed well. To handle such issues, several authors recognized supply chain management (SCM) as a way that can mediate the relationship to improve performance. SCM enables seeks synchronization of intrafirm and interfirm operational and strategic capabilities into a unified, compelling marketplace force, and focuses supply chain partners on creating customer value. The importance of SCM as mediator should be considered as an important element to increase performance. Therefore, this study tries to theoretically investigate the potential benefits of SCM as a mediator to SCP. Also, it further explores the relationship of strategic fit between market orientation (MO) and supply chain orientation (SCO) to SCP. To investigate this relationship, this study proposes the covariance approach. The relationship and the covariance approach can be empirically tested for future research. (C) 2016 Published by Future Academy www.FutureAcademy.org.uk