Supply Chain Activities and Financial Performance: The Role of Top Management Support

The purpose of this study was to investigate the impact of supply chain activities on firm financial performance with respect to the role of top management support. In this regard, the financial information of 165 companies among the companies listed on the Tehran Stock Exchange was evaluated. Financial performance improvement is considered as a dependent variable, supply chain activities and top management support are considered as the main independent variables and the financial structure and firm size are considered as control variables. In order to measure the variables of supply chain activities and top management support, a survey has been used for these companies’ managers. After performing diagnostic tests, structural equation pattern and composite regression have been used to determine the relationship between variables. Data analysis showed that supply chain activities in all three dimensions of suppliers, Intra-organizational and customers lead to improved financial performance with measures of sales return, return on investment and return on equity. Additional analysis confirmed the moderating role of top management support.