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Operations, flexibility and distribution factors in logistics capabilities are examined, and service quality is selected as an intermediate variable in measuring supply chain performance. Based on this, a series of hypotheses are proposed and measurement models are established. A questionnaire survey of nearly 1000 industrial arms in Mainland China is administered, and analysis of the responses adopting structure equation modeling (SEM) leads to the conclusion that operations capability is the key factor in supply chain performance. Analysis of the empirical study also indicates that operations capability has significant impacts on distribution capability, flexibility capability, and service quality, as well as indirect impact on financial performance via service quality.