Product variety management and supply chain performance: A capability perspective on their relationships and competitiveness implications

Juneho Um, Andrew Lyons, Hugo K.S. Lam, T.C.E. Cheng and Carine Dominguez-Pery

International Journal of Production Economics, 2017, vol. 187, issue C, 15-26

Abstract: We study 363 manufacturing businesses to investigate the relationships between product variety management and supply chain performance. Applying the dynamic capabilities view of how businesses cope with changing environments, we develop a conceptual model that links product variety management strategies with supply chain responsiveness, and relates supply chain responsiveness to cost and customer service in high- and low-customization environments. We find that a product variety management strategy influences both supply chain cost and customer service performance only when mediated by internal and external responsiveness capabilities. In addition, a product variety management strategy has different impacts on performance depending on the level of product customization. Specifically, in a low-customization environment, both supply chain flexibility and agility acting as dynamic capabilities have a significant influence on cost efficiency while in a high-customization environment, these dynamic capabilities have a significant influence on customer service.

Keywords: Product variety; Supply chain performance; Customization; Dynamic capabilities; Structural equation modelling (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:187:y:2017:i:c:p:15-26

DOI: 10.1016/j.ijpe.2017.02.005

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