The Impact of Supply Chain Management Practices on Competitive Advantage and Organizational Performance; Case: Companies in Bosnia and Herzegovina

Over the past decade, the traditional purchasing and logistics functions have evolved into a broader strategic approach to materials and distribution management known as supply chain management (SCM). Effective SCM has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations, but among supply chains. Facing uncertain environments, firms have strived to achieve greater supply chain collaboration to leverage the resources and knowledge of their suppliers and customers. This research conceptualizes and develops five dimensions of SCM practice and tests the relationships between SCM practices, competitive advantage, and organizational performance in Bosnia and Herzegovina. Research will be conducted via questionnaire and the target groups are the companies in Bosnia and Herzegovina with developed supply chain management. According to the previous researches the results should indicate that higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance. Also, competitive advantage can have a direct, positive impact on organizational performance. Keywords: Supply chain management; Competitive advantage; Organizational performance; Structural equation modeling