scholarly journals Supply chain flexibility in dynamic environments

2018 ◽  
Vol 38 (3) ◽  
pp. 636-666 ◽  
Author(s):  
Araceli Rojo ◽  
Mark Stevenson ◽  
Francisco Javier Lloréns Montes ◽  
Maria Nieves Perez-Arostegui

Purpose The purpose of this paper is to analyse the relationship between environmental dynamism and supply chain flexibility (SCF) and to evaluate if two dynamic capabilities, i.e. operational absorptive capacity (OAC) and organisational learning (OL), are necessary competences for firms to develop such a responsive supply chain strategy as flexibility. Design/methodology/approach Hypothesised relationships are tested with survey data from 302 Spanish manufacturing firms using structural equations modelling. Findings Environmental dynamism is positively associated with both OAC and OL, and both dynamic capabilities enable SCF. The authors also find that the relationship between environmental dynamism and SCF is partially mediated by both dynamic capabilities. Research limitations/implications The study contributes to the literature, for example, by determining when it is advantageous to develop SCF, by specifying what capabilities a firm needs to develop to align SCF with the environment, and by opening the black box that is the relationship between the environment and SCF. Practical implications Managers should develop SCF via OAC and OL when they detect a high degree of environmental dynamism. Knowing when this is necessary relies on a good understanding of the environment. OAC is found to be a stronger enabler of SCF than OL. The findings provide managers with an insight into why some firms are able to develop more effective responses to dynamic environments than others. Originality/value This study is one of only a limited number of studies that adopt a dynamic capabilities approach to supply chain management. Prior literature has shown that dynamic capabilities can aid in developing strategic, structural, and operational flexibility. The authors extend this literature by showing that OAC and OL have an effect on SCF.

2016 ◽  
Vol 21 (4) ◽  
pp. 433-452 ◽  
Author(s):  
Araceli Rojo ◽  
Javier Llorens-Montes ◽  
Maria Nieves Perez-Arostegui

Purpose The purpose of this paper is to analyze whether supply chain (SC) ambidexterity improves supply chain flexibility (SCF) and its impact on SC competence and firm performance. A new measurement instrument for SCF is proposed that takes into account the demands of the environment: SCF fit. Design/methodology/approach A theoretical model is developed to examine the relationships proposed. The hypotheses are tested with data from 302 manufacturing firms using a structural equations model methodology. Findings The results show that SC ambidexterity helps to achieve the optimal level of SCF and that supply chain management (SCM) is important to firm performance. Research limitations/implications This paper makes three contributions to the SCM literature: first, it develops the conceptual definition of SC ambidexterity and studies its effects at the SC level; second, it develops a new instrument to measure SCF known as SCF fit; third, it studies both the impact of SCF fit on SC competence and the importance of SC in firm performance. Practical implications This paper develops a measurement instrument that permits managers to diagnose the level of SCF and the correspondence/gap between current and optimal levels and to establish comparisons between different SC. It also indicates the importance of SCM for firm performance and the need to consider the SC as a whole. Originality/value This is one of the first studies to analyze ambidexterity in an organizational network like the SC. It shows that exploitation practices do not jeopardize SCF as long as they are accompanied by exploration practices. That is, high levels of exploration and exploitation are compatible in the SC and lead to the optimal level of SCF.


2018 ◽  
Vol 38 (9) ◽  
pp. 1796-1814 ◽  
Author(s):  
Saileshsingh Gunessee ◽  
Nachiappan Subramanian ◽  
Kun Ning

Purpose The purpose of this paper is to provide quantitative evidence of natural disasters’ (NDs) effect on corporate performance and studies the mechanisms through which the supply chain moderates and mediates the link. Design/methodology/approach Using two major NDs as quasi-experiment, namely the 2011 Japanese earthquake-tsunami (JET) and Thai flood (TF), and data over the period 2010Q1-2013Q4, effect of these events on end assemblers’ performance is studied, with a focus on the personal computer (PC) supply chain. The moderating influence of delivery and sourcing – as supply chain flexibility and agility – are examined through end assemblers’ and suppliers’ inventory. The suppliers’ mediating role is captured as disruption in obtaining PC components through their sales. Findings Only JET had any negative effect, further quantified as short-term and long-term. The TF instead portrays an insignificant but positive aftermath, which is construed as showing learning from experience and adaptability following JET. Inventory matters, but differently for the two events, and suppliers only exhibit a moderating influence on the assemblers’ disaster-performance link. Originality/value NDs, as catastrophic vulnerabilities, are distinct from other vulnerabilities in that they are hard to predict and have significant impact. Since little is known about the impact of NDs on firm performance and how supply chain mechanisms moderate or mediate their impact, they should be distinctly modelled and empirically studied from other vulnerabilities. This paper sheds light on supply chain resilience to such events with the role of dynamic capabilities.


2017 ◽  
Vol 22 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Rofyanto Kurniawan ◽  
Suhaiza Hanim Zailani ◽  
Mohammad Iranmanesh ◽  
Premkumar Rajagopal

Purpose The vulnerability issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address the lack of empirical research, this paper aims to primarily explore the relationship between vulnerability mitigation strategies and supply chain effectiveness with security culture as a moderator. Design/methodology/approach Data are gathered via a survey of 209 Indonesian manufacturing firms. The data are analyzed using partial least squares technique. Findings Results indicate that supply chain visibility, supply chain flexibility and supplier development strategies positively affect supply chain effectiveness. Moreover, risk culture positively moderates the effects of supply chain visibility and supplier development on supply chain effectiveness. Practical implications The findings may improve supply chain effectiveness by mitigating the effects of vulnerability causes. Originality/value This study contributes to the advancement of knowledge on the relationships between vulnerability mitigation strategies and supply chain effectiveness.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anurodhsingh Khanuja ◽  
Rajesh Kumar Jain

PurposeSupply chain integration (SCI) and flexibility (SCF) are recognised as crucial business practices and capability in the global competitive market. However, limited research has paid attention to study the relationship between SCI, SCF and their impact on supply chain performance (SCP). Therefore, the purpose of this paper is to establish a relationship between integration, flexibility and performance.Design/methodology/approachThe structural equation modelling technique was used to analyse the 187 data collected from Indian organisations through the survey methodology.FindingsFindings indicate that external integration contributes significantly to realise SCF and SCP. Sourcing and logistics flexibility also help to improve the SCP. The mediation analysis showed that the association of customer and supplier integration with SCP is partially and fully mediated by logistics flexibility, respectively. This study suggests that integration influences the SCP when the firm has a strong association with downstream partners and enough capability for logistics flexibility.Research limitations/implicationsThe study has collected cross-sectional data to analyse the relationship between SCI, SCF and SCP. However, as integration requires an effort of the years, longitudinal data and industry-specific studies may provide comprehensive views to validate the results of this study.Originality/valueBuilding on relational view theory and dynamic capability theory, the study has proposed the SCP assessment framework based on the relationship between SCI and SCF.


2019 ◽  
Vol 57 (7) ◽  
pp. 1511-1534 ◽  
Author(s):  
Chih-Jou Chen

Purpose Developing agility and innovativeness as dynamic capabilities are important for firms to sustain their competitive advantage in today’s global economy. The purpose of this paper is to develop and empirically test a framework to investigate how the supply chain agility and innovativeness are achieved through IT integration and trust in members of supply chain and how these, in turn, can enhance firms’ competitive advantage. Design/methodology/approach This research employs a survey method and data are collected from senior managers working in the supply chain or IT area. The model and hypotheses are tested utilizing data from 204 usable Taiwan manufacturing firms via structural equations modeling methodology. Findings The study demonstrates that both IT integration and trust in supply chain members significantly enhance supply chain agility and innovativeness, which in turn positively affect firm’s competitive advantage. The results indicate that IT integration and trust are antecedents and major joint partnership resources for improving supply chain agility and innovativeness. Research limitations/implications Data are collected from manufacturing industry in Taiwan and single respondent from each firm, the generalizability of current findings to other industries or countries should require additional investigation. Practical implications The study suggests that a firm should focus on IT integration and trust in supply chain members to achieve supply chain agility and innovativeness. To take advantage of supply chain agility and innovativeness, through maximizing firm’s competitive advantage, firms should continually adapt to the fast changing business environment and search for creative ways to satisfy new market needs. Originality/value Given the attention paid to supply chain agility and innovativeness in terms of importance to responding to business uncertainty and competitiveness, and more recently, as important capabilities in managing supply chain management, this paper investigates how IT integration and trust can contribute to supply chain agility and innovativeness. Provide evidence regarding the impact of IT integration and trust on agility of supply chains, innovativeness and competitive advantage.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Surajit Bag ◽  
Muhammad Sabbir Rahman

Purpose A circular economy is a popular approach considered by many firms to address sustainable development goals strategically. Literature indicates that collaborative relationships among supply chain partners facilitate circular economy practices. However, there is a dearth of studies in lower-middle-income countries indicating the unique challenges industries face whilst practising circular economy principles and how the challenges can be overcome. To address the calls of previous researchers, this study aims to explore the following relationships: engagement and alliance capability whilst data analytics capability plays a mediating role; the relationship between alliance and data analytics capability with sustainable supply chain flexibility whilst industry dynamism is considered as a moderating variable and the relationship between sustainable supply chain flexibility and circular economy-target performance. Design/methodology/approach A cross-sectional survey was performed and data was collected from 760 employees of Indian firms. Covariance-based structural equation modelling was applied to perform the path analysis to determine a firm’s capabilities in shaping sustainable supply chain flexibility and enhancing circular economy target performance. Findings Drawing upon dynamic capability theory, it was first established that engagement capability has a positive and significant influence on alliance capability, whilst data analytics capability played a partial mediating role. Second, it was established that alliance capability and data analytics capability significantly affect sustainable supply chain flexibility, whilst industry dynamism played a moderating role. Finally, it was clear that sustainable supply chain flexibility had a significant and positive effect on circular economy target performance, ultimately enhancing sustainability. Originality/value This study advances the circular economy literature by recommending that firms must consider some critical operational level capabilities to develop their dynamic capability, i.e. sustainable supply chain flexibility, to better meet the competitive market conditions in turbulent business environments.


2017 ◽  
Vol 37 (3) ◽  
pp. 343-362 ◽  
Author(s):  
Raymond Obayi ◽  
S.C. Koh ◽  
David Oglethorpe ◽  
Seyed M. Ebrahimi

Purpose The purpose of this paper is to investigate the mediating role of three important relational capabilities – absorptive capacity (AC), transactive memory systems (TMS), and organisational interoperability (OI); on the flexibility of buyer-supplier relationships and performance in retail supply chains. Drawing on the relational view of strategic management, the impact of relational capabilities on two forms of supply chain flexibility is examined – configuration flexibility (CF) for switching suppliers with minimal penalties, and planning and control flexibility (PCF) for altering supply schedules, quality, and delivery lead-time. Design/methodology/approach Strategic- and tactical-level managers from 211 retail stores in the UK were surveyed. The authors validated a measurement model with structural equation modelling and tested four hypotheses on the mediating role of relational capabilities on supply chain flexibility and retail performance, controlling for size, duration of relationship, and market segment. Findings Results showed that the three relational capabilities partially mediated the positive effect of CF and PCF on operational performance in big middle and niche retailers. Examining the interaction effect of the forms of flexibility on the relational capabilities and performance, the authors found positive interaction effects on TMS and OI but a non-significant effect on AC. Practical implications In addition to providing novel theoretical insights on supply chain flexibility, the findings have practical implications for supplier selection and buyer-supplier relationship management. Originality/value Overall, the study highlights the impacts of relational capabilities on adopted operational strategies such as flexibility, buyer-supplier relationships, and retail performance.


2018 ◽  
Vol 52 (9/10) ◽  
pp. 1981-2004 ◽  
Author(s):  
Wai Wai Joyce Ko ◽  
Gordon Liu ◽  
Isaac K. Ngugi ◽  
Chris Chapleo

Purpose This paper aims to examine the effect of external supply chain (SC) flexibility on the product innovation performance of small- and medium-sized enterprises (SMEs) and the contingent role of informal control mechanisms in moderating such an effect. Design/methodology/approach This study conducts a cross-sectional questionnaire survey of 236 UK-based SME manufacturers. Findings Inbound supplier flexibility (ISF) has a stronger positive effect on SMEs’ product innovation performance than outbound logistics flexibility (OLF), and that the strength and direction of both effects depend on informal control mechanisms. Lead supplier influence negatively moderates the relationship between ISF and product innovation performance but positively moderates the relationship between OLF and product innovation performance. Normative integration positively moderates the relationship between ISF and product innovation performance. Research limitations/implications This study enriches SC flexibility studies by focusing on understanding the differential effects of ISF and OLF on product innovation performance, as well as the role that contingency factors play in these relationships in the SME context. Practical implications To promote product innovation performance, SME managers should focus on building good relationships with their suppliers rather than their logistics service providers. SME managers should be particularly aware of the different types of informal control mechanisms that govern their SC relationships and adjust their managerial approaches accordingly. Originality/value This study distinguishes between ISF and OLF and examines their impacts on SMEs’ product innovation performance. This study investigates the differential effects of lead supplier influence and normative integration on the relationship between external SC flexibility and SMEs’ product innovation performance.


Author(s):  
Errassafi Mohamed ◽  
Abbar Hassan

Supply chain integration has become a major challenge for companies in the current context. Information sharing, and collaboration improve supply chain flexibility, tractability, and efficiency. Several studies have demonstrated, the positive and the significant relationship between supply chain integration and firm performance. Other studies have focused on the factors that affect this relationship. Supply chain complexity is a contingency factor that affects this relationship. Based on the literature review and through a confrontational approach, the authors propose a conceptual model to show how the complexity of supply chain affects the benefit of integration. Propositions are posited with suggestions for further research. Authors suggest that there are three dimensions of supply chain complexity which moderate the effect of supply chain integration on the firm performance: upstream, internal and downstream complexity; that there is a taxonomy of firm's group based on their level of each dimension of complexity and the effect of integration differs from one group to another.


2017 ◽  
Vol 28 (4) ◽  
pp. 964-1026 ◽  
Author(s):  
Jorieke H.M. Manders ◽  
Marjolein C.J. Caniëls ◽  
Paul W.Th. Ghijsen

Purpose The conceptualization of flexibility in organizations historically emerged from three views which relate to economic, to organizational and to manufacturing perspectives. Despite the growing number of publications about supply chain flexibility in the area of supply chain management, there is a lack of consensus on how to define and to conceptualize supply chain flexibility from a management point of view. The purpose of this paper is to present a comprehensive overview of the literature on the supply chain flexibility perspective and contributes to our understanding of the current state of research and its future development. Design/methodology/approach The research methodology used is the systematic literature review. In total 92 articles were selected from databases of well-known journal publishers in the field of economics, business studies and management sciences as well as grey literature to cover the topic of supply chain flexibility. Findings A limited number of studies in the field of supply chain flexibility apply theories and define the term supply chain flexibility. Instead they focus on a particular part or dimension of the supply chain. Based on the analysis, a distinction is made between flexibility in the supply chain and supply chain flexibility. Based on the function and characteristics of the supply chain, the authors selected 30 flexibility dimensions that cover supply chain flexibility by concentrating on the different business areas involved. Research limitations/implications The results support researchers and practitioners by identifying relevant trends and gaps in the field of supply chain flexibility. Originality/value The authors review the dimensions and aspects of supply chain flexibility that are currently taken into account in the literature. In this way, the authors provide an overarching perspective on the flexibility literature relating to supply chains.


Sign in / Sign up

Export Citation Format

Share Document