Assignment on Correlation Analysis of Supply Chain and How Is the Effectiveness in the Global Economy

The association of the study variables can better be determined by the Pearson product-moment correlation coefficient. It was developed by Karl Pearson in 1985. The test results for this coefficient lie between +1 and -1. For positive correlation, test result is +1. For no relationship, test result is 0. The negative relation between the variables is depicted by -1. The correlation analysis and its results are shown in Table.

Correlation Coefficient of Supply Chain and How Is the Effectiveness in the Global Economy

 Interpretation

The type of association between the study dependent and the independent variables is depicted by the Pearson correlation coefficient. According to the value of the Pearson coefficient, for p<0.01 there exists positive relationship between the study independent and the dependent variables (i.e., Global Logistics, Global Market Channel, Global Operations, Supply Chain management and Global Economy).

Regression Analysis

Relationship among Independent and mediator

 Interpretation

A measure for the goodness-of-fit is provided by the R-Square value in the regression model. The variance %age change in the dependent variable due to the independent variables is depicted by this value. The R-square value for the current tests is 45% it shows the significant impact of the independent variables on the mediating variable (Supply Chain management). A comparison between the models is provided by the value of adjusted R-square value. This value is 44% which shows that out of total variation narrated by the regression line, the variation %age is significant. As far as the p-value for the regression is concerned, for all the independent variables this value is less than 0.05 except Global Market Channel and the value of this is 0.157. This shows that Global Logistics, Global Market Channel and Global Operations are positively significantly correlated with the Supply Chain management. These parameters have a significant impact on the effectiveness of the supply chain management.

Relationship among Independent and dependent

 Interpretation

A measure for the goodness-of-fit is provided by the R-Square value in the regression model. The variance %age change in the dependent variable due to the independent variables is depicted by this value. The R-square value for the current tests is 70% it shows the significant impact of the independent variables on the dependent variable (global economy). A comparison between the models is provided by the value of adjusted R-square value. This value is 7.05% which shows that out of total variation narrated by the regression line, the variation %age is significant. As far as the p-value for the regression is concerned, for all the independent variables this value is less than 0.05. This shows that Supply Chain management significantly correlated with the Global Economy. These parameters have a significant impact on the effectiveness of the supply chain management.

5. Discussions of Supply Chain and How Is the Effectiveness in the Global Economy

In this section, first of all, there will be a brief discussion on the differences between supply chain management and GSCM to comprehend which the latter one is considered more effective. Moving on, the problem statement, research questions, and research objectives will be summarized. Then, the conceptual framework and methodology will be explained. Lastly, the results obtained from the research methods in this study will be summarized and answers to the research questions will be offered.

5.1 GSCM and SCM of Supply Chain and How Is the Effectiveness in the Global Economy

The focus of this study has been on green practices and lean practices which play an important role in enhancing the performance and capability of the supply chain. With the use of different methods such as cellular manufacturing, waste elimination, and JIT, green supply chain can be improved. The performance of such a supply chain is affected significantly and positively by the management of waste, eco-design, and assessment of the lifecycle in an effective manner. This study also emphasizes on the fact that green supply chain is influenced by innovations in the existing processes (Christopher, 2016).

It has been explained that for obtaining a competitive advantage in the service and manufacturing industry, business practices have to be established in a sustainable manner. At present, organizations are thinking about more eco-friendly solutions which can enhance their functions while minimizing costs associated with waste. In addition to just enhancing efficiency, organizations are working towards minimizing global warming which is affecting almost every aspect of life. As explained above, the management of supply chain is a cross-functional approach. It is mainly concerned with activity management which procures services and material, transforms them into final and intermediate goods, and delivers the products through a defined distribution network.

There are different operations which are performed by an organization and some of them have an effect on the environment. Some operations are capable of posing a significant threat to the environment in different forms such as traffic congestion, scraped toxic materials, packaging materials, and emission of carbon monoxide among other forms. It can be said that the concept of GSCM is concerned with integrating environmental perspective into the management of supply chain. In the improvement of environmental performance, the green supplier sector is considered quite significant. Green supply or environmental management refers to the manner in which innovations and in industrial purchasing and supply chain management are considered with respect to the environment (Håkansson & Persson, 2004).

Some activities involved in the GSCM are reverse logistic, remanufacture, recycle, and reuse. It has been determined green supply chain management is quite a critical organizational philosophy and an important role is played by it in promoting synergy and efficient among different organizational aspects.

For instance, it serves to facilitate environmental performance while minimizing waste and saving costs for achieving corporate profit and setting the objective of market share. Ecological efficiency is improved by it in the organizational context as well. Usually, traditional SCM focused on the control and cost of final products and it hardly considered its effects on the environment. In contrast, GSCM is integrated, green, and ecologically enhanced, and is capable of taking human toxicological effects into consideration as well. And at present, ecological efforts are considered a significant criteria for production and products to ensure sustainability and profitability by organizations. Stages of traditional supply chain management include customers, retailers, distributors, manufacturers, and supply of raw materials. Meanwhile, some of the objectives accomplished through traditional SCM include: Inventory can be minimized or optimized, cost of the supply chain can be decreased, product delivery time can be optimized, and flexibility can be increased (Jacobs, Chase, & Lummus, 2011).

 Table: Green SCM vs. Traditional SCM

It can be said that green supply chain management is the alignment of recycling, remanufacturing, transportation, distribution, manufacturing, and sourcing processes with the objective of decreasing the carbon footprint of an organization. Traditional SCM is the foundation of GSCM and with the intensification of competition in the 1990s, firms were triggered to focus on the environment and perform in a socially and ethically responsible manner.

The practices of SCM include different activities and approaches used by an organization for effectively integrating demand and supply for optimizing supply chain management (Monczka, Handfield, Giunipero, & Patterson, 2015).

5.2 Problem Statement of Supply Chain and How Is the Effectiveness in the Global Economy

In present times, the topic of SCM has become quite a common research topic. However, there is one similarity between all of these studies. The majority of these studies have focused on the issue of green supply chain management in the context of organizational performance. Meanwhile, there is only a handful of studies which have focused on its impact on the global economy. Thus, it wouldn’t be wrong to say that a research gap still exists in the field of green supply chain management. The theme of this research study is to evaluate the effectiveness of SCM in the context of global economy.

5.3 Research Questions of Supply Chain and How Is the Effectiveness in the Global Economy

Following are the research questions which were determined in this research:

1.      Does a positive significant relationship exists between supply chain performance and information sharing?

2.      How supply chain induce impact on organizational performance and profitability?

3.      What are the factors of supply chain that effect global economy strength and stability?

In addition to the research questions, some hypotheses were also developed and they are as follow:

1)      Effective supply chain management has positive relationship with information sharing.

2)      Supply chain ineffectiveness draw negative impact on organizational profitability

3)      Effective supply chain management has positive impact on organizational performance.

4)      Supply chain has relationship with strength of global economy

5)      Inefficient supply chain managerial practices in organizations negatively influence global economy.

5.4 Research Objectives of Supply Chain and How Is the Effectiveness in the Global Economy

Following are the research objectives which were set to be accomplished within this research:

1.      To access the relationship exist between supply chain performance and information sharing.

2.      To analyze the aspects of supply chain which have an impact on organizational performance and profitability.

3.      To ascertain the factors of supply chain that affect global economy strength and stability.

4.      To ascertain the supply chain ineffectiveness draw negative impact on organizational profitability.

5.      To analyze the aspects of supply chain which have a relationship with strength of global economy

6.      To analyze the aspects of inefficient supply chain managerial practices in organizations negatively influencing the global economy.

7.      To provide the recommendations on effective supply chain management and how it can have a positive impact on organizational performance.

5.5 Conceptual Framework

In this research, both independent and dependent variables were selected for conducting the study and analyzing the relationships between the variables. Three independent variables were selected which included global operations, global market channel, and global logistics. The mediator was set to be supply chain while there was only one dependent variable. The global economy was selected to be the dependent variable in this study.

5.6 Methodology of Supply Chain and How Is the Effectiveness in the Global Economy

The methodology of this research is composed of both secondary and primary sources of data collection. For instance, a literature review has been performed in this research for finding the relevant and important information from the existing researches. For instance, different researches have been analyzed using this method. In order to acquire the most reliable information, journal articles and research papers were studied. Meanwhile, questionnaires have been utilized as a method of primary research for collecting information necessary for conducting this research. In order to obtain relevant information using questionnaires, sampling as a technique of selecting respondents was utilized.