Effects of Supply Chain Agility on Customer Satisfaction and Financial Performance of SMEs in Pakistan

Abstract

Young ventures frequently operate with limited capital, informal routines, and weak bargaining power, making disciplined supply chain processes potentially important for market survival. This study reassesses the relationship between Supply Chain Operations Reference (SCOR)-based practices and three dimensions of early-stage venture performance in Pakistan: financial performance, customer satisfaction, and service level. A quantitative, cross-sectional survey was administered online to startup and small-business operators. Of 55 responses received, 50 valid cases were retained. The instrument measured the combined practices of planning, sourcing, making, delivery, and returns, together with the three performance outcomes. Internal consistency was acceptable for all constructs (Cronbach’s α = .747–.888). Pearson correlations and simple linear regressions were used for analysis.

The combined SCOR score was weakly and nonsignificantly associated with financial performance (r = .219, R² = .048, β = .219, t = 1.552, p = .127). In contrast, SCOR practices were positively associated with customer satisfaction (r = .591, approximately 34.9% shared variance, t = 5.081, p < .001) and service level (r = .542, R² = .294, β = .542, t = 4.466, p < .001). At the process level, sourcing was the only SCOR component significantly related to financial performance (r = .303, p = .033), whereas all five components were associated with customer satisfaction and service level to varying degrees. The findings suggest that operational discipline may be reflected first in customer-facing outcomes, while financial benefits may be delayed, indirect, or obscured by the cost and volatility experienced by young firms. Because the sample is small and nonprobabilistic, the results should be treated as exploratory rather than nationally representative or causal.