An integrative framework of supply chain flexibility

Ying Liao

International Journal of Productivity and Performance Management, 2020, vol. 69, issue 6, 1321-1342

Abstract: Purpose - It is crucial to recognize that supply chain flexibility is important to build sustainable competitive edge in coping with uncertainty. This study puts forth an empirically supported integrative framework to understand supply chain flexibility from market-oriented and network-oriented perspectives, interrelationships among its dimensions and the effect of supply chain complexity as a contingent factor. Design/methodology/approach - The online survey data were collected from 201 manufacturing companies and checked for common method variance, validity and reliability. Structural equation modeling was then used to test the hypotheses. Findings - The results of this study demonstrate that there are interrelationships among market-oriented and network-oriented supply chain flexibility dimensions. It is the flexibility embedded in the supply chain network configuration that plays critical roles in superior performance in flexibility capabilities to create customer values. The interrelated effect among flexibility dimensions is contingent on the magnitude of the supply chain complexity corresponding to the number of supply chain tiers. Originality/value - This study takes a step to advance understanding of supply chain flexibility from an integrative point of view consisting of market-oriented and network-oriented perspectives. This study is expected to provide practitioners the foundation to implement supply chain flexibility considering the interrelationships among flexibility dimensions. Our results suggest that to carry out a supply chain flexibility strategy, the vertical complexity of the supply chain structure needs to be taken into consideration.

Keywords: Supply chain flexibility; Market-oriented flexibility; Network flexibility; Supply chain complexity; Contingency (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-07-2019-0359

DOI: 10.1108/IJPPM-07-2019-0359

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