An empirical study of relationships between goal alignment, centralised decision-making, commitment to networking and supply chain effectiveness using structural equation modelling

ABSTRACT The aim of this paper is to investigate the underlying factors of supply chain effectiveness of the networked organisations that are involved in the logistics industry in the UAE context. In particular, the study is to empirically test the relationships between goal alignment, commitment to networking and decision-making with four aspects of supply chain effectiveness. A questionnaire-based survey primarily inductive in nature was used to gather quantitative data from various supply chain organisations across industry verticals that are operating in the UAE. The data for this study were gathered and analysed employing survey responses from 154 representative organisations of various supply chain and logistics sector in the UAE. In this research, structural equation modelling has been applied to test these identified factors and their effect on supply chain effectiveness and its performance. The research discovered that the relationship between supply chain goal alignment, commitment to networking and decision-making were significantly and positively correlated with supply chain effectiveness. The findings provide insight into the field of supply chain effectiveness as part of supply chain performance. Several recommendations are offered for supply chain members to improve supply chain effectiveness while implementing dimensions of their strategic supply chain.

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