The role of capabilities in shaping sustainable supply chain flexibility and enhancing circular economy-target performance: an empirical study

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.


Author(s):  
Gaurav Goyal ◽  
Harsh Vardhan Samalia ◽  
Piyush Verma

PurposeThe purpose of this paper is to investigate the mediating role of process simplification on the relationship between process integration and upstream supply chain flexibility in Indian automotive organizations.Design/methodology/approachThe three-step mediation analysis was performed using SPSS macro PROCESS to assess the mediating role of process simplification on the relationship between process integration constructs: top management commitment and supplier relationship; and upstream supply chain flexibility.FindingsThe results indicate a complete mediation effect of process simplification between supplier relationship and upstream supply chain flexibility, while partial mediation effect is noticed between top management commitment and upstream supply chain flexibility.Practical implicationsFor Indian automotive managers, the study suggests that for improving the upstream supply chain flexibility, organizations must have a strategy towards improving the simplification of supply chain processes by upgrading technology and providing training to their suppliers. This understanding will help the automotive managers to simplify their upstream supply chain processes for gaining competitive positioning and maximizing the organizational profit.Originality/valueThis study has considered the mediating role of process simplification (a relatively less studied variable) specifically in the context of its impact on upstream supply chain flexibility. Also, the presented study explores this role in the Indian automotive domain which further enhances its value for both practitioners and researchers alike.


2018 ◽  
Vol 29 (1) ◽  
pp. 340-364 ◽  
Author(s):  
Kangkang Yu ◽  
Ben Nanfeng Luo ◽  
Xue Feng ◽  
Jianing Liu

Purpose Supply chain flexibility is crucial for firms to respond to uncertain circumstances caused by environmental factors, such as the diversity of customer demands, problems of product safety, and adjustments of industrial policies. To investigate the approach to enhance supply chain flexibility, the purpose of this paper is to propose that both internal and external information integration contribute to reactive and proactive supply chain flexibilities, which elicit high operational performance. Design/methodology/approach Using a sample of 84 food companies that have been listed three years in China and content analysis based on their annual reports, evidence was collected to test the hypotheses through hierarchical regressions. Findings The results reveal that external information integration results in both reactive and proactive flexibilities, which further improve operational performance. Internal information integration positively affects both reactive and proactive flexibilities, but its mediating role was not determined in the study. Originality/value The research provides insights into how supply chain flexibility mediates the effect of supply chain information integration on operational performance in the context of the Chinese food industry.


2015 ◽  
Vol 2015 (1) ◽  
pp. 16659
Author(s):  
Raymond Obayi ◽  
Seyed Mohammad Ebrahimi ◽  
SC Lenny Koh ◽  
David Oglethorpe

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.


2016 ◽  
Vol 23 (3) ◽  
pp. 564-583 ◽  
Author(s):  
Joakim Coker ◽  
Petri Helo

Purpose – Demand-supply balancing (DSB) strategies and approaches are becoming increasingly important for manufacturing and operations. The purpose of this paper is to analyze practices of manufacturing companies and how they balance demand/supply in operations. Design/methodology/approach – Questionnaire-based interview has been conducted at 20 largest companies having manufacturing/operations in Finland. Findings – Supply chain structure, flexibility, demand management, capacity management, inventory management and revenue management are perceived as key practices for DSB. Research limitations/implications – The results show importance of supply chain-related parameters such as supply chain flexibility and inventory management in addition to production planning and control. The study is delimited to Finland companies but it gives an idea how decision making in operations generally can be perceived. Practical implications – DSB actions should be connected to operations strategy and long-term planning of the company. Originality/value – DSB is a strategic-level operations question which has an impact on several functions of supply chain.


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.


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