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 ()
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Juneho Um: Liverpool Hope University
Andrew Lyons: University of Liverpool
Hugo K.S. Lam: University of Liverpool
T.C.E. Cheng: POLYU - The Hong Kong Polytechnic University [Hong Kong]
Carine Dominguez-Pery: CERAG - Centre d'études et de recherches appliquées à la gestion - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]

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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: 2017-05
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Citations: View citations in EconPapers (10)

Published in International Journal of Production Economics, 2017, 187, pp.15-26. ⟨10.1016/j.ijpe.2017.02.005⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01986046

DOI: 10.1016/j.ijpe.2017.02.005

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