The Influence on the Performance of Supply Chain Management on Small and Medium Business Manufacturing Production Processes in Mexico

Aims: This study investigates the influence of Supply Chain Management on production processes in order to analyze the performance of manufacturing SMEs.

Study Design: This quantitative research with the support of EQS 6.1 software and structural equation-based statistical treatment,

Place and Duration of Study: The study was performed in manufacturing companies in the state of Aguascalientes, Mexico, between March and April 2012.

Methodology: The sample was taken from 120 companies which employ between 10 and 250 employees, and for which we designed and applied a survey of company managers in this important sector. The simple random sample was based on the official records held by the Sistema de Información Empresarial Mexicano (SIEM or the Mexican Business Information System). The instrument consists of 3 blocks which measure the management of the supply chain, production processes and business performance within these companies.

Results: We performed exploratory and confirmatory analysisin order to analyze the factor loading of each variable, in order to confirm that there supply chain management has a positive influence on both the company’s production processes and yield. It also has a significant influence on the company’s ratio of production processes and performance.

Conclusion: The relationship between the main factors revealed from the Cronbach statistics shows that the load is positive and therefore that the theoretical model for the study is reliable.