The impact of supply chain management efficiency on credit rating quality: the moderating role of economic policy uncertainty

Purpose The present study explores the effect of supply chain management efficiency (SCME) on credit rating quality (CRQ) and the moderating role of economic policy uncertainty (EPU) in firms listed on the Tehran Stock Exchange (TSE). Design/methodology/approach A total number of 1,910 firm-year observations of 191 firms from 2014 to 2023 were examined. The SCME was calculated using the sales per Inventory Ratio. The CRQ was established using the Technique for Order of Preference via the Similarity to the Ideal Solution (TOPSIS) method grounded in entropy. EPU is obtained considering the elements of economic growth and inflation rates. Findings The findings showed that SCME had a significant and positive effect on CRQ. EPU significantly moderates the impact of SCME on CRQ. Moreover, the three-way interaction (SCME, EPU, and firm size) yields a significantly negative coefficient, suggesting that the moderating effect of EPU on the SCME–CRQ relationship increases with an increase in firm size. Originality/value This study provides evidence that metrics such as SCME can act as reliable indicators of CRQ, particularly in institutional contexts with underdeveloped credit rating systems. Furthermore, it introduces an innovative empirical framework that simultaneously examines SCME and EPU as key drivers of CRQ. This integrative approach advances beyond conventional models that independently evaluate supply chain performance or policy uncertainty, offering a more comprehensive perspective on the dynamics of creditworthiness.