Supply chain strategies as drivers of financial performance in liquefied natural gas networks

Abstract

Purpose The purpose of this study is to identify and evaluate supply chain strategies (SCSs) that drive financial performance to guide practitioners, especially in liquefied natural gas (LNG) networks, to review and adopt SCSs that drive competitiveness and value creation for investors. Design/methodology/approach Analytical hierarchy process (AHP) was deployed to prioritise SCSs according to their relative impact on financial performance in LNG networks. Interviews with experts were analysed using template analysis to establish latent drivers of financial performance specific to LNG networks. Findings Results support the significant role of SCSs in improving financial performance. Although findings prioritised collaborative strategy as the most important driver of financial performance in LNG networks, to fully optimise financial outcomes, all the SCSs should be implemented across LNG networks as no single strategy in isolation is a standalone driver of financial performance. Practical implications The AHP model provides a novel ranking for SCSs and measures to guide decision-makers. LNG practitioners may exploit the results to make informed decisions. Originality/value The study extends previous literature by proposing a framework and a new LNG empirical model that facilitates understanding of how SCSs contribute positively to financial performance and support practitioners in making strategic supply chain decisions.