The Impact of Supply Chain Practices Governance on Business Performance: An Empirical Study of Industrial Companies in Riyadh Region

Abstract

Objectives: 
This study aimed to explore the impact of supply chain practices governance on the performance of business organizations in industrial companies in Riyadh region. It also sought to clarify the concept of supply chain governance and the reasons for its emergence, examine the current state of governance principles implementation and their requirements, and analyze their relationship with organizational performance. 

Methodology: 
The study adopted a descriptive-analytical approach. The study population consisted of employees at senior management levels in governmental industrial companies in Riyadh region. A random sample of (103) employees was selected. Data were collected using a questionnaire as the primary research instrument to measure the dimensions of supply chain practices governance and the level of business performance. 

Results: 
The findings revealed a statistically significant impact of supply chain practices governance, across its various dimensions, on the performance of business organizations in industrial companies in Riyadh region. The results also indicated positive effects of process governance, integration governance, distribution governance, and procurement governance on improving organizational performance, contributing to enhanced operational efficiency and strengthened organizational coordination. 

Conclusion: 
The study concluded that the implementation of supply chain practices governance represents a key factor in improving the performance of industrial companies. It recommended continuous monitoring and evaluation of governance practices, as well as the establishment of an integrated administrative system to activate governance mechanisms, thereby contributing to the development of precise performance standards and enhancing efficiency and sustainability in industrial companies in Riyadh region.