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Modelling framework of the Tandem Supply Chain Efficiency and Sustainable Financial Performance in the Automotive Industry

Author

Listed:
  • Simona Burta

    (Doctoral School of Economics and Business Administration, West University of Timisoara, 300223, Timi?oara, Romania)

  • Ana-Cristina Nicolescu

    (Faculty of Economics and Business Administration, West University of Timisoara, 300223, Timi?oara,Romania)

  • Sorana Vãtavu

    (Faculty of Economics and Business Administration, West University of Timisoara, 300223, Timi?oara,Romania)

  • Emilia Bozga

    (Doctoral School of Economics and Business Administration, West University of Timisoara, 300223, Timi?oara, Romania)

  • Oana-Ramona Lobon?

    (Faculty of Economics and Business Administration, West University of Timisoara, 300223, Timi?oara,Romania)

Abstract

The research examines the causal relationship between supply chain efficiency and sustainable financial performance based on the evidence from the literature dealing with a transition from financial decision-making based on the financial outcome, including financial rationale in supply chain design, operations, and management. The case study has included 100 companies selected from the automotive production sector over ten years, from 2010 to 2019. Methodologically, the study includes statistically fixed and random effects models, considering within the model parameters as dependent variables asset and efficiency-based ratios and as independent variables financial performance ratios related to returns on assets, equity, capital expenses, and sales. The selection of the fixed or random- effects model is accomplished by performing the Hausman test. The results of panel analysis indicate a causal relationship for the proposed models, highlighting the importance of efficiency ratios such as Fixed Assets Turnover Ratio, Total Assets Turnover Ratio, and Fixed Assets Turnover. From practitioners` perspective, the models` construction and the paper’s results gain insight into strategic supply chain areas that can be prioritised for increased efficiency and corporate competitiveness, promoting sustainable financial performance through asset structure, asset efficiency, and inventory management.

Suggested Citation

  • Simona Burta & Ana-Cristina Nicolescu & Sorana Vãtavu & Emilia Bozga & Oana-Ramona Lobon?, 2022. "Modelling framework of the Tandem Supply Chain Efficiency and Sustainable Financial Performance in the Automotive Industry," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 40(1), pages 201-224.
    • Handle: RePEc:rfe:zbefri:v:40:y:2022:i:1:p:201-224
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    References listed on IDEAS

    as
    1. Elgazzar, Sara H. & Tipi, Nicoleta S. & Hubbard, Nick J. & Leach, David Z., 2012. "Linking supply chain processes’ performance to a company’s financial strategic objectives," European Journal of Operational Research, Elsevier, vol. 223(1), pages 276-289.
    2. Son, Byung-Gak & Sodhi, ManMohan & Kocabasoglu-Hillmer, Canan & Lee, Tae-Hee, 2016. "Supply chain information in analyst reports on publicly traded companies," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 350-360.
    3. Wuttke, David A. & Blome, Constantin & Henke, Michael, 2013. "Focusing the financial flow of supply chains: An empirical investigation of financial supply chain management," International Journal of Production Economics, Elsevier, vol. 145(2), pages 773-789.
    4. WUTTKE, David A & BLOME, Constantin & HENKE, Michael, 2013. "Focusing the financial flow of supply chains: an empirical investigation of financial supply chain management," LIDAM Reprints CORE 2601, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Ştefan Cristian Gherghina & Mihaela Onofrei & Georgeta Vintilă & Daniel Ştefan Armeanu, 2018. "Empirical Evidence from EU-28 Countries on Resilient Transport Infrastructure Systems and Sustainable Economic Growth," Sustainability, MDPI, vol. 10(8), pages 1-34, August.
    6. Naim, Mohamed M. & Gosling, Jonathan, 2011. "On leanness, agility and leagile supply chains," International Journal of Production Economics, Elsevier, vol. 131(1), pages 342-354, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    supply chain; sustainable financial performance; corporate competitiveness;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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