An Empirical Study to Understand the Effect of Supply Chain Agility on Organizational Operational Performance

2018 ◽  
Vol 11 (4) ◽  
pp. 1-20 ◽  
Author(s):  
Rayhaneh Nazempour ◽  
Jianhua Yang ◽  
Abdul Waheed
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Empirical Work ◽  
Critical Factor ◽  
Operational Performance ◽  
Primary Data ◽  
Equation Modeling ◽  
Supply Chain Agility ◽  
Structure Equation Modeling ◽  
The Relationship

To bring agility in supply chain operations is a critical factor for firms in order to meet customers' requirements in an effective and productive manner. Several researchers have been argued that agility has become a prime driver of competitiveness. However, agility with respect to supply chain was not extensively studied, especially less attention was paid to empirical work. This article attempts to fulfill such need by investigating the relationship between supply chain agility (SCA) and organizational performance (OP) in the context of Iran. Primary data were collected through surveys distribution to 500 SC managers of all levels in Iranian SMEs. Subsequently, hypotheses were tested through SPSS and Structure Equation Modeling (SEM). The findings revealed a positive relationship between SCA and OP along with positive relationships of each dimension of SCA (e.g., alertness, decisiveness, flexibility, accessibility, and swiftness). This article ensures that organizational OP might be improved by focusing SCA in the today's competitive environment.

An Empirical Study to Understand the Effect of Supply Chain Agility on Organizational Operational Performance

2020 ◽  
pp. 1608-1630
Author(s):  
Rayhaneh Nazempour ◽  
Jianhua Yang ◽  
Abdul Waheed
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Positive Relationship ◽  
Empirical Work ◽  
Critical Factor ◽  
Primary Data ◽  
Equation Modeling ◽  
Supply Chain Agility ◽  
Structure Equation Modeling ◽  
The Relationship

To bring agility in supply chain operations is a critical factor for firms in order to meet customers' requirements in an effective and productive manner. Several researchers have been argued that agility has become a prime driver of competitiveness. However, agility with respect to supply chain was not extensively studied, especially less attention was paid to empirical work. This article attempts to fulfill such need by investigating the relationship between supply chain agility (SCA) and organizational performance (OP) in the context of Iran. Primary data were collected through surveys distribution to 500 SC managers of all levels in Iranian SMEs. Subsequently, hypotheses were tested through SPSS and Structure Equation Modeling (SEM). The findings revealed a positive relationship between SCA and OP along with positive relationships of each dimension of SCA (e.g., alertness, decisiveness, flexibility, accessibility, and swiftness). This article ensures that organizational OP might be improved by focusing SCA in the today's competitive environment.

Supply chain learning and organizational performance: evidence from Chinese manufacturing firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia Ul Haq
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Organizational Performance ◽  
Manufacturing Firms ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Different Types ◽  
The Relationship

Purpose Despite the significance, no study examines the relationship between supply chain (SC) learning components and focal firm performance. This study aims to investigate different types of SC learning (supplier, customer and internal learning) and their influence on the focal firm’s operational and financial performance. Design/methodology/approach Grounded in knowledge-based view and absorptive capacity theory, this study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China. Findings The findings indicate that supplier and customer learning improve internal learning. Customer and internal learning have direct influence on operational performance, whereas internal learning mediates the relationship between supplier learning and operational performance. Moreover, all three dimensions of SC learning do not affect financial performance directly but operational performance plays the mediating role in their relationship. Research limitations/implications This study only investigates SC learning outcomes without exploring its antecedents. In addition, SC learning and their impacts on firm performance are tested empirically with cross-sectional data collected only from manufacturing firms in China. Practical implications The findings furnish managers to seek for competitive advantages through different types of SC learning. Originality/value This study offers new insights concerning the performance implications of SC learning. It divides SC learning into dimensions and shows the distinctive impacts of these dimensions on focal firm’s performance using an empirical method.

Impact of Supply Chain Collaboration on Operational Performance of Port: A Gwadar Perspective

2021 ◽  
Vol 10 (2) ◽  
pp. 73-84
Author(s):  
CHAUDHRY RIZWAN RIAZ ◽  
KHALILULLAH MOHAMMAD
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Explanatory Variable ◽  
Operational Performance ◽  
Primary Data ◽  
Equation Modeling ◽  
Main Concern ◽  
Supply Chain Collaboration ◽  
The Impact ◽  
The Relationship

The main concern of this study was to determine the impact of supply chain collaboration on Gwadar port operational performance. The objective of the study has been achieved through conducting a survey and primary data has been analyzed to assess the linkages between explanatory variable and dependent variable. The survey was conducted to collect the primary data from respondents to determine the impact of supply chain collaboration on port performance. The managers of the companies located in Gwardar port remain the unit of analysis and their responses have been collected. A total of 300 questioners had been distributed and a valid number of questionnaires 225 has been obtained which makes the response rate of 75%. Data properties and respondent characteristics have been outlined. The covariance based structural equation modeling has been employed to statistically signify the relationship between the supply chain collaboration on Gwadar port operational performance. Based on statistical analysis the findings of the study suggest that supply chain collaboration positively triggers the operational performance of Gwadar port. Keywords: Port Performance, Supply Chain Collaboration, Gwadar Port, Supply Chain.

scholarly journals The effects of supply chain finance on organizational performance: a moderated and mediated model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean-Noël Beka Be Nguema ◽  
Gongbing Bi ◽  
Temidayo O. Akenroye ◽  
Jamal El Baz
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Organizational Performance ◽  
Operational Risk ◽  
Operational Performance ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Supply Chain Finance ◽  
The Relationship

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.

The relationship between internal supply chain structure and operational performance: survey results from Japanese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama
Keyword(s):  
Supply Chain ◽  
Structural Properties ◽  
Operations Management ◽  
Chain Structure ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Wide Range ◽  
Supply Chain Structure ◽  
The Relationship

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.

Providing an interpretive structural model of agile supply chain practices

2019 ◽  
Vol 15 (2) ◽  
pp. 661-684 ◽  
Author(s):  
Akbar Rahimi ◽  
Abbas Raad ◽  
Akbar Alem Tabriz ◽  
Alireza Motameni
Keyword(s):  
Supply Chain ◽  
Organizational Structure ◽  
Human Resource ◽  
Defense Industry ◽  
Theory And Practice ◽  
Equation Modeling ◽  
Content Type ◽  
Agile Supply Chain ◽  
Supply Chain Agility ◽  
The Relationship

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.

scholarly journals Environmental scanning, supply chain integration, responsiveness, and operational performance

2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Business Environment ◽  
Supply Chain Integration ◽  
Operational Performance ◽  
Equation Modeling ◽  
Environmental Scanning ◽  
Content Type ◽  
Processing Theory ◽  
The Relationship

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.

Impact of supply chain information sharing on performance of fashion enterprises

2019 ◽  
Vol 32 (6) ◽  
pp. 913-935 ◽  
Author(s):  
Caixia Chen ◽  
Tongyu Gu ◽  
Yuru Cai ◽  
Yixiong Yang
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Information Sharing ◽  
Life Cycles ◽  
Equation Modeling ◽  
Content Type ◽  
Research Results ◽  
Fashion Brand ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to develop a novel research model to examine the relationship among information sharing (IS), supply chain integration (SCI), operational performance (OP) and business performance (BP) in the fashion supply chains. Design/methodology/approach A survey of 247 executives from Chinese fashion brand firms was conducted and the data were analyzed to investigate how IS affects the organizational BP. Structural equation modeling (SEM) was applied to study the relationship among IS, SCI, OP and BP. Findings The empirical research results indicate that IS is critical to enhance the SCI and OP, and both SCI and OP exert mediating effects on BP of fashion brands. This result also reveals constructive suggestions that allow fashion brands to strengthen their SCI and OP, as well as BP. Research limitations/implications Multiple data sources were applied to develop the sampling frame, and respondents were selected (according to their experience and position) to ensure they had the knowledge and expertise to provide valid response. However, this could not guarantee the adequacy of the sample. This limitation is compounded by the reliance on a simple respondent per firm, which precludes testing for inter-rater reliability. Practical implications The empirical findings provide an enhanced understanding of the relationship among IS, SCI, OP and BP in Chinese fashion brand settings. The research results will help fashion brands to improve supply chain efficiency and enhance company performance. Originality/value Although previous studies have realized that the value of IS varies in different industries, few have specifically explored the impact on the fashion industry characterized by short life cycles, high volatility, low predictability and high impulse purchasing. To fill this knowledge gap, the present study employed a questionnaire survey and SEM techniques to explore the relationship among IS, SCI, OP and BP in the fashion supply chain. Comprehending the impact mechanism of IS on organizational performance can provide useful management insights into the development of effective strategies that allow enterprise to improve BP.

scholarly journals The Impact of Information Technology Capability on Supply Chain Technology Adoption and Supply Chain Operational Performance: a Resource based View

2018 ◽  
Vol 7 (4.15) ◽  
pp. 224
Author(s):  
Lee Khai Loon ◽  
Gusman Nawanir ◽  
Jalal Hanaysha ◽  
Zahari Abu Bakar
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Technology Adoption ◽  
Operational Performance ◽  
Equation Modeling ◽  
Resource Based View ◽  
It Capability ◽  
Technology Capability ◽  
Information Technology Capability ◽  
The Relationship

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.  

Environmental uncertainty and supply chain performance: the effect of agility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
R. Anthony Inman ◽  
Kenneth W. Green
Keyword(s):  
Supply Chain ◽  
Environmental Uncertainty ◽  
Agile Manufacturing ◽  
Equation Modeling ◽  
Alternative View ◽  
Supply Chain Performance ◽  
Content Type ◽  
Supply Chain Agility ◽  
Study Results ◽  
The Relationship

PurposeToday's businesses are facing a world that is more complex, turbulent and unpredictable than in the past with increasing levels of environmental complexity. Rather than proposing environmental uncertainty as a mediator/moderator of the relationship between agility and performance as others have done, the authors offer an alternative view where supply chain agility is seen as mediating the relationship between environmental uncertainty and supply chain performance.Design/methodology/approachThe authors propose that supply chain agility is a response to the effects of environmental uncertainty and, as such, environmental uncertainty should be seen as a driver of supply chain agility. Few studies test the direct relationship between uncertainty and supply chain performance, and none simultaneously test for agility's mediation and moderation effect between environmental uncertainty and agility.FindingsThe model was statistically assessed using partial-least-squares structural equation modeling (PLS/SEM) by analyzing survey data from manufacturing managers in 136 US firms. The study results did not indicate a significant relationship between environmental uncertainty and supply chain performance. However, the authors did find a significant positive relationship between agile manufacturing and supply chain performance using measures that were primarily operations-centered rather than financial. Additionally, the authors found that agile manufacturing fully mediates the relationship between environmental uncertainty and supply chain performance.Originality/valueThe authors’ model, though simple, provides a base for future research for them and other researchers who can incorporate other impacting variables into the model. The study results show that uncertainty can be a force for good and that utilizing agile manufacturing can be a new source of opportunity.

Sign in / Sign up

Export Citation Format

Share Document