The effect of supply chain agility and lean practices on operational performance: a resource-based view and dynamic capabilities perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Umair Manzoor ◽  
Sajjad Ahmad Baig ◽  
Muhammad Hashim ◽  
Abdul Sami ◽  
Hakeem-Ur Rehman ◽  
...  

PurposeIn today's global economy, developing supply chain agility (SCA) and lean practices (LP) as resource-based view and dynamic capabilities are essential for firms to sustain their competitive advantage (CA) and enhance their operational performance (OP). The purpose of this paper is to develop and empirically test a framework to investigate how CA is achieved through SCA and LP and how these, in turn, can enhance a firm's OP.Design/methodology/approachFor data collection, the authors adopted the survey method using self-administered questionnaires. Two-source survey data were collected in two rounds (separated by a two-month lag time) from supply chain managers, operational managers and general managers. The purpose of collecting data in two rounds was to reduce common-method bias. Likert scale (1–5) was used in the questionnaire. Smart PLS 3 and SPSS 23 were used for the data analysis purpose.FindingsSCA was found to directly and positively affect OP. LP also positively affected OP. In addition, CA fully mediated the relationship between SCA, LP and OP.Practical implicationsThis study encourages the managers of manufacturing firms to adapt LP and their supply chains (SCs) to become agile and leverage the advantages of their implementation to improve their OP and succeed in the market.Originality/valueThis study is one of the first to investigate the effect of SCA and LP on OP. Furthermore, the first study examines CA's mediating impact on the relationship between SCA, LP and OP.

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.


2018 ◽  
Vol 38 (12) ◽  
pp. 2266-2285 ◽  
Author(s):  
Haris Aslam ◽  
Constantin Blome ◽  
Samuel Roscoe ◽  
Tashfeen M. Azhar

Purpose This paper positions market sensing, supply chain agility and supply chain adaptability as a coherent cluster of dynamic supply chain capabilities. The purpose of this paper is to understand how dynamic supply chain capabilities interrelate and their effect on supply chain ambidexterity. Design/methodology/approach Based on a survey of Pakistani manufacturing firms, a theoretically-derived model was tested in a structural equation model. Findings The results of the study show that a market-sensing capability is an antecedent of supply chain agility and supply chain adaptability. Furthermore, supply chain agility, directly, and supply chain adaptability, indirectly, affect supply chain ambidexterity. Supply chain agility, therefore, mediates the relationship between supply chain adaptability and supply chain ambidexterity. Originality/value The contribution of this study lies in: first, identifying dynamic capability clusters relevant for achieving supply chain ambidexterity; second, evaluating performance implications of dynamic capabilities in the supply chain, specifically supply chain agility and adaptability; and third, proposing a unique measurement of supply chain ambidexterity in the light supply chain theory, and empirically evaluating the relationship between dynamic capabilities and supply chain ambidexterity.


2020 ◽  
Vol 31 (6) ◽  
pp. 1185-1204 ◽  
Author(s):  
Haris Aslam ◽  
Abdul Qadeer Khan ◽  
Kamran Rashid ◽  
Saif-ur Rehman

PurposeThis study analyzes the role of supply chain ambidexterity (SC-Ambidexterity) in developing supply chain resilience (SC-Resilience). We describe SC-Ambidexterity as a simultaneous application of supply chain adaptability (SC-Adaptability) and supply chain alignment (SC-Alignment) capabilities. We also consider the role of supply chain agility (SC-Agility) in the relationship between SC-Ambidexterity and SC-Resilience. We further suggest that the relationship between SC-Ambidexterity and SC-Resilience may be stronger in case of higher market uncertainty.Design/methodology/approachBased on the dynamic capabilities view (DCV) of the firm, we develop a set of hypotheses that are tested through a survey of manufacturing firms in Pakistan. The hypothesized model is tested through structural equation modeling (SEM).FindingsThe results of this study show a positive effect of SC-Ambidexterity on SC-Resilience. SC-Agility positively mediates the relationship between SC-Ambidexterity and SC-Resilience. However, our results show that this relationship does not vary at different levels of environmental uncertainty.Originality/valueThis study provides the seminal operationalization of SC-Ambidexterity in the supply chain context. It further shows the importance of SC-Ambidexterity and SC-Agility in contributing toward SC-Resilience.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean-Noël Beka Be Nguema ◽  
Gongbing Bi ◽  
Temidayo O. Akenroye ◽  
Jamal El Baz

Purpose This paper aims to draw on the dynamic capabilities approach and aims to empirically investigate the impact of supply chain finance (SCF) on firm performance (e.g. operational risk and operational performance), the critical effect of environmental dynamism (ED) as moderator and supply chain risk (SCR) and a mediator in the relationship between SCF and organizational performance (OP). Design/methodology/approach This study is based on empirical data collected from a survey of 210 companies and their supply chains in mainland China. Structural equation modeling is used to test the proposed relationships. Findings The findings show that SCF significantly mitigates the SCR, which subsequently has a significant positive effect on OP (e.g. operational risk and operational performance). The findings also show that when ED is high, the relationship between SCF and SCR is stronger and vice versa. Moreover, SCR mediates the relationship between SCF and OP. The hypothesis regarding the moderating effect of ED on the paths joining SCF and SCR was also supported. SCR has a significant negative effect on OP. However, the hypothesis regarding the effect of ED on SCR was not supported. Research limitations/implications This study has some limitations. First, this paper conducted the research with Chinese organizations. This may result in low generalizability in other contexts. In addition, this paper used the survey method and cross-sectional data design in this study, which may generate the potential issue of common method bias. However, the findings of this study will help organizations across China and other emerging economies to adopt SCF as a secure financing mechanism to enhance working capital and mitigate risk. In addition, the paper provides some new managerial insights for decision-makers in organizations, while exploring different factors such as SCF, SCR and ED and their effect on the organization. Originality/value This study has greatly developed a general SCF adoption model that helps to guide empirical research investigating the critical impact of SCF on firm performance.


2015 ◽  
Vol 26 (2) ◽  
pp. 356-380 ◽  
Author(s):  
Mohamad Sadegh Sangari ◽  
Jafar Razmi

Purpose – The purpose of this paper is to study the role of business intelligence (BI) in achieving agility in supply chain context by examining the relationship between BI competence, agile capabilities, and agile performance of the supply chain. Design/methodology/approach – A theoretical framework is developed drawing on the resource-based view, the dynamic capabilities perspective, and the competence-capability relationship paradigm, as well as an extensive review of the literature. Structural equation modeling is employed to analyze the data collected from Iranian manufacturers in the automotive industry. Findings – The empirical results support the conceptualization of supply chain BI competence as a multi-dimensional construct comprising managerial, technical, and cultural competence, and confirm that it is a key enabler of supply chain agility in terms of both agile capabilities and agile performance. The results also provide support for partial mediation of agile capabilities on the relationship between BI competence and agile performance of the supply chain. Originality/value – This paper provides a response to the identified need for empirical evidence on the benefits derived from BI, especially in the supply chain context. It also contributes to the existing supply chain agility literature by providing insight into the value and role of BI in enhancing agile capabilities and performance in the inter-organizational supply chain.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama

Purpose The purpose of this paper is to discuss the roles of a supply chain management (SCM) department. To achieve that, this study empirically examines the relationship between internal supply chain structure and operational performance, using survey data collected from 108 Japanese manufacturers. Design/methodology/approach Based on a literature review of not only organizational theory but also other fields such as marketing, logistics management, operations management and SCM, this study focused on two structural properties, formalization and centralization and divided operational performance to firm-centric efficiency and customer-centric responsiveness. To examine the analytical model using these dimensions, this study conducted a structural equation modeling. Findings The correlation between centralization of operational tasks and centralization of strategic tasks, the impacts of centralization of both tasks on formalization and the effect of formalization on responsiveness performance were demonstrated. In addition, the reasons for formalization not positively influencing efficiency performance were explored through follow-up interviews. Practical implications Manufacturers need to formalize, as much as possible, a wide range of SCM tasks to realize operational excellence. To establish such formalized working methods, it is effective to centralize the authorities of both operational and strategic tasks in a particular department. In addition, inefficiency due to strict logistics service levels is a problem that all players involved in the supply chain of various industries should work together to solve. Originality/value The theoretical contribution of this study is that the authors established an empirical process that redefined the constructs of formalization and centralization, developed these measures and examined the impacts of these structural properties on operational performance.


2019 ◽  
Vol 15 (2) ◽  
pp. 661-684 ◽  
Author(s):  
Akbar Rahimi ◽  
Abbas Raad ◽  
Akbar Alem Tabriz ◽  
Alireza Motameni

Purpose Nowadays, the defense industry is considered a significant part of the manufacturing industries. Military products in the world have a high level of diversity, delivery speed and appropriative operational functionality. Therefore, various producing, high quality and high-speed delivery of military products are of great importance in enhancing Iran’s defensive power. Defense industries’ supply chain agility is a response to how to produce military products with these features. Therefore, the purpose of this paper is to provide a model for the agile supply chain of defense industries to show the relationship between agile practices and their hierarchy. Design/methodology/approach First, the authors identify the most important supply chain agility practices by expert’s questionnaire. Then, using factor analysis, practices are categorized and validated based on structural equation modeling (SEM). SEM showed a meaningful relationship between agile supply chain practices. Finally, using interpretative structural modeling, a model is presented to show the logical relationships and hierarchy between these practices. Findings The results show that out of a total of 62 practices introduced in the previous research for the agile supply chain, 37 practices in the agility of the supply chain of defense industries are effective. The 4 new agility practices were identified in this research. These 41 practices were classified into 8 categories including supplier relationship, workshop level management, organizational structure improvement, human resource management, product designing, improve and integrate the process, application of information technology and customer relationship. Improvement of organizational structure was at the highest level of the model. Therefore, managers first should focus on it. Research limitations/implications Given the confidentiality of information in the defense industry, the distribution of questionnaires and their collection was one of the most important limitations. A variety of defense products in land, air and sea areas, and a large number of industries in each sector, forced the authors to select the only land area. Although the results of this research can be used in the air and sea areas, but cannot be said that the implementation of this study presented model will fully lead to the defense industries’ supply chain agility in air and sea sectors. Originality/value This is the first research on the supply chain agility of Iran’s defense industry that bridges the gap between theory and practice. The classification of 41 practices in the form of 8 measures and examining the relationship between them is a new and practical approach for understanding the relationships between different variables that affect supply chain agility. This study introduces four new agility practices including the use of new technology and equipment, human resource balance, the use of expert human resources, training and employee empowerment, which can be considered in many industries of developing or less developed countries. Considering the specific situation of defense industry supply chain in comparison with other industries, the results of this research can be used by other defense industries of similar countries.


2020 ◽  
Vol 40 (10) ◽  
pp. 1589-1611 ◽  
Author(s):  
Vishnu Nath ◽  
Rajat Agrawal

PurposeThe present study aims to empirically investigate whether supply chain agility and lean management practices are antecedents of supply chain social sustainability.Design/methodology/approachData were collected from 311 supply chain practitioners from the Indian manufacturing sector. Confirmatory factor analysis was employed to test the validity and reliability of the measures used, and a structural model was analyzed to test the hypotheses of the current study.FindingsThe results indicate that agility and lean practices are significant antecedents of social sustainability orientation as well as social sustainability performance. The results also suggest that agility has a significant indirect effect on operational performance via social sustainability orientation, basic social sustainability practices as well as agility is indirectly affecting social sustainability performance via social sustainability orientation and basic social sustainability practices.Practical implicationsThe results of the present study have implications for managers that want to make their supply chain more socially sustainable.Originality/valueThe study is unique in the sense that it empirically links agility and lean practices with social sustainability orientation, social substantiality performance and operational performance in supply chains.


2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan

Purpose It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR). Design/methodology/approach The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China. Findings The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance. Practical implications Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment. Originality/value Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.


2018 ◽  
Vol 7 (4.15) ◽  
pp. 224
Author(s):  
Lee Khai Loon ◽  
Gusman Nawanir ◽  
Jalal Hanaysha ◽  
Zahari Abu Bakar

Organization increasingly relies on the supply chain technology to improve the supply chain operational performance. Yet, past evidence suggests that the adoption of supply chain technology does not guarantee enhanced supply chain operational performance. Drawing from the Resource Based View, this study found that information technology (IT) capability enabled supply chain technology adoption in achieving supply chain operational performance. Supply chain technology serves as a system in transforming IT capability into a higher value resources for an organization. The adoption of supply chain technology in managing supply chain deserved attention from researchers and practitioners, because business benefits from supply chain technology adoption improve firm’s supply chain performances which enhance reliability, improve responsiveness, increase agility, and minimize cost in operation functions. This study provides a unique theoretical framework intended to aid researchers and practitioners develop a more thorough understanding of the linkages between information technology capability, supply chain technology adoption, and supply chain operational performance. The total of 201 questionnaires were sent to Malaysia's textile and apparel company that is listed in the Federation of Malaysian Manufacturers (FMM) and Malaysian External Trade Development Corporation (MATRADE) directory. The total of 121 usable responses were obtained and analyzed through Partial Least Square Structural Equation Modeling (PLS-SEM). The discussion of this study is followed by presenting the results of the survey on the relationship of IT capability on supply chain technology adoption and supply chain operational performance. The results shown that supply chain technology adoption is mediating the relationship between IT capability and supply chain operation performance.  


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