scholarly journals Modelling the link between supply chain risk, flexibility and performance in the public sector

Author(s):  
Khomotso Mhelembe ◽  
Chengedzai Mafini

Background: The South African public sector faces numerous internal and external risks that limit the performance of its entire supply chain. An understanding of these risks and their effects is an important milestone in overcoming them.Aim: This article tested the relationship between supply chain risks, flexibility and performance in the South African public sector.Method: A survey questionnaire was administered to 307 supply chain practitioners who were based in the public sector in Gauteng. A structural equation modelling procedure was utilised in testing the proposed relationships.Results: The results of the study showed that six supply chain risk factors, namely government policies, supply complexity, availability of skills, supplier performance monitoring, information security and process efficiency exert significant influences on supply chain flexibility. In turn, supply chain flexibility exerts a positive influence on the performance of the public supply chain.Conclusion: Managers in government may be able to improve the public supply chain management function through the suitable management of the supply chain risk factors considered in this study.

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):  
José Roberto Díaz-Reza ◽  
Valeria Martínez-Loya ◽  
Jorge Luis García Alcaraz ◽  
Ismael Canales-Valdiviezo

2019 ◽  
Vol 7 (2) ◽  
pp. 531-538
Author(s):  
Kittisak Jermsittiparsert ◽  
Supamit Srisawat

Purpose: The current study is interested in exploring the nexus between product complexities, external and internal knowledge and supply chain flexibility of Indonesian manufacturing firms. Methodology: The study has employed the knowledge-based view to conceptualize the relationship between product complexities, external and internal knowledge and supply chain flexibility of Indonesian manufacturing firms. The complexity of manufacturing flexibility has made this concept difficult to comprehend yet delimit. To date, agreement on how to practice this concept has not yet been resolved. Employing the survey-based methodology, the SEM-PLS technique is used to test the hypothesized relationships. So, the current study has used SEM-PLS as a statistical tool to answer the research questions raised in this study and research objectives envisaged in the current study. Results: The findings of the study have provided support to the theoretical foundation and proposed hypothesis of the current study. Current study will be helpful for policymakers and practitioners in understanding the issues related to supply chain risk, supply chain integration and supply chain agility. In the author's knowledge this is among very few pioneering studies on this issue.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sricharan Chirra ◽  
Dinesh Kumar

PurposeIn today's competitive market subject to various uncertainties, supply chain flexibility (SCF) arose as a potential weapon to enhance the firm's performance. This paper model the effect of SCF on automobile industry performance during sales promotional schemes (SPS), which has turned out to be one of the most important marketing tools.Design/methodology/approachIn view of the literature and the expert opinion taken from an automobile OEM, the SCFs and performance measures pertaining to the SPS environment have been identified. For the purpose of ranking the SCFs with respect to the performance measures, the Interpretive Ranking Process (IRP) has been applied using the direct contact method as a means for establishing the contextual relationships between SCFs and performance measures and to draw the interpreting reasons behind them.FindingsThe findings of this study along with the validity and stability of the results assessed through the system graphs and sensitivity analysis demonstrate that flexibility at the procurement end followed by the organizational end has the highest impact on the performance of the company during SPS.Originality/valueAnalysis of SCFs in regard to performance measures during SPS helps improve supply chain performance and offer valuable insights to the practicing managers in decision-making. This study augments the flexibility literature, by clubbing the two independent research streams, SCF and SPS.


2019 ◽  
Vol 7 (2) ◽  
pp. 503-509
Author(s):  
Jutamat Sutduean ◽  
Watcharin Joemsittiprasert ◽  
Kittisak Jermsittiparsert

Purpose: This study aims to address the existing research gap, as well as to explore the various types of flexibility which could contribute in mitigating supply chain risks. Methodology: In this regard, we consider three aspects under SCR namely; manufacturing process risk, delivery risk, and supply risk. The study explores the relationships among supply chain risk and environmental uncertainty, and the moderating role of supply chain flexibility by employing data of 91 manufacturing companies and develop a structural equation modelling. Results: Developing economies are contributing well in the global trade and are responsible for 50% of the generated global output. They present future prospects for economic growth and pose challenges mainly because of immature supply chain operations. Considering the critical role of emerging economies in global supply chain, such as India and China, it is also important to observe the moderating and driving supply chain risk factors in these regions. It is assumed that this study will not only fill the existing gap in the literature of SCRM but will assist researchers and practicing managers, by enabling them to fully understand certain types of supply chain flexibility, thus reducing the SCR under business environments.


2016 ◽  
Vol 27 (3) ◽  
pp. 862-885 ◽  
Author(s):  
Ben Nanfeng Luo ◽  
Kangkang Yu

Purpose The purpose of this paper is to compare the effects on performance of two types of misfits (overfit vs underfit) as well as two types of fits (high-high fit vs low-low fit) between environmental uncertainty and supply chain flexibility. Design/methodology/approach The two asymmetry hypotheses have been tested with survey data from 212 Chinese manufacturing firms. Findings The results in general provided empirical evidences for the asymmetric effects in the fits and misfits between environmental uncertainty and supply chain flexibility. For the same degree of misfit, underfit deteriorates performance more than overfit. In addition, high supply chain flexibility fitting high environmental uncertainty (i.e. high-high fit) results in a higher performance than low supply chain flexibility fitting low environmental uncertainty (i.e. low-low fit). Practical implications It suggests that managers should strive to avoid the underfit of supply chain flexibility rather than the overfit, if the perfect fit is impossible to achieve. In addition, as it is beneficial to realize the fit of supply chain flexibility to high levels of environmental uncertainty, managers should probably embrace the highly uncertain environment and enhance the supply chain flexibility of their organizations to meet the increasing uncertainty of environment. Originality/value Fit and misfit are the core concepts to understand the relationships among environmental uncertainty, supply chain flexibility strategy, and performance. While the existing literature highlights the differential performance consequences of fit vs misfit between environmental uncertainty and supply chain flexibility strategy, the effects on performance are assumed to be the same for the two types of misfits, and two types of fits. The authors challenge these symmetry assumptions by arguing that overfit has a less negative effect on performance than underfit, and high-high fit has a stronger positive effect than low-low fit. The authors found empirical evidence in a large sample of Chinese manufacturing firms.


2018 ◽  
Vol 118 (7) ◽  
pp. 1365-1387 ◽  
Author(s):  
Kangkang Yu ◽  
Jack Cadeaux ◽  
Nanfeng Luo ◽  
Cheng Qian ◽  
Zhenghao Chen

Purpose The purpose of this paper is to understand how the consistency between objective and perceived environmental uncertainty might affect supply chain flexibilities that cope with supply chain risk. Design/methodology/approach This study adopted a case study of comparative four companies in order to obtain an in-depth knowledge of the environmental conditions under which the companies implement different types of supply chain risk management (SCRM) strategies: logistics flexibility and relationship flexibility. Findings The case analysis not only distinguished the different effects of objective and perceived environmental uncertainty on supply chain flexibility, but also established the propositions about the effects of the consistency between objective and perceived environmental uncertainty on logistics flexibility and relationship flexibility in SCRM. Originality/value In principle, supply chain flexibility aims to cope with complex and turbulent environments. Yet, empirical findings about the effects of environmental uncertainty on supply chain flexibility are inconclusive. This study addressed this question by differentiating between objective and perceived environmental uncertainty as well as between logistics and relationship supply chain flexibilities.


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