Project Management Practices and Supply Chain Performance: The Role of Financial Efficiency and Risk Management

Abstract

This study examined the impact of project management practices on supply chain performance while considering the mediating roles of financial efficiency and risk management. In an increasingly complex business environment, organizations require effective coordination of project activities to improve operational outcomes. A quantitative research design was employed, and data were collected from 312 valid respondents working in manufacturing and logistics organizations in Punjab, Pakistan. The analysis was conducted using structural equation modeling to test direct and indirect relationships among variables. The results revealed that project management practices significantly influenced supply chain performance (β = 0.41, p < 0.001). Financial efficiency showed a positive effect on supply chain performance (β = 0.33, p < 0.001), while risk management also demonstrated a significant impact (β = 0.37, p < 0.001). Financial efficiency mediated the relationship between project management practices and supply chain performance (β = 0.18, p < 0.001). Risk management also acted as a significant mediator (β = 0.21, p < 0.001). The model explained 49% variance in supply chain performance (R² = 0.49), 34% in financial efficiency (R² = 0.34), and 37% in risk management (R² = 0.37). The findings confirmed that integrated project management practices combined with financial efficiency and risk management significantly enhanced supply chain performance. The study contributed to the literature by providing an integrated framework for improving operational effectiveness in supply chain systems. It also offered practical insights for managers to strengthen planning, financial control, and risk mitigation strategies for sustainable performance improvement.