Table 4

SC performance covariance-based (CB) software factor analysis results

ConstructMeasurement itemsLoadingsP-values
Inventory costsWe keep optimum inventory levels in our firm0.765p ≤ 0.001
The cost of keeping inventory in our firm is low0.586p ≤ 0.001
The cost of keeping inventory significantly affects the profitability of our firm0.421p ≤ 0.05
Operating costsWe have low operating costs in our firm0.325p > 0.05
Sharing of information in our firm has led to a reduction in operating costs0.442p ≤ 0.05
Management competencies in our firm have led to a reduction in operating costs0.443p ≤ 0.05
Lead timeThere is timely processing of customer orders in our firm0.677p ≤ 0.001
Our suppliers conform to the delivery schedules and timelines0.462p ≤ 0.001
We have strategies with which we handle urgent customer orders0.506p ≤ 0.001
Stock out probabilityWe always have enough stock to fulfill a given demand request0.693p ≤ 0.001
We keep extra stock to cater for unpredicted customer orders0.473p ≤ 0.05
We never run short of stock in our firm0.284p ≤ 0.05
Fill rateWe have a good order fulfillment record to our customers0.622p ≤ 0.001
Customer orders are always fully met by immediate stock availability0.339p ≤ 0.05
We don't experience stock outs in our firm0.381p ≤ 0.05
We never lose sales because of lack of stock0.602p ≤ 0.001

Source(s): Authors' own creation

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