An integrative framework of supply chain flexibility

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.,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.,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.,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.

[1]  K. Dooley,et al.  Explaining Complex Organizational Dynamics , 1999 .

[2]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[3]  Omar El Sawy,et al.  Coordinating for Flexibility in e-Business Supply Chains , 2004, J. Manag. Inf. Syst..

[4]  E. Ngai,et al.  Supply chain flexibility in an uncertain environment: exploratory findings from five case studies , 2011 .

[5]  Thomas Y. Choi,et al.  Unveiling the structure of supply networks: case studies in Honda, Acura, and DaimlerChrysler , 2002 .

[6]  A. Anouze,et al.  The integrated impact of new product and market flexibilities on operational performance , 2018, Journal of Manufacturing Technology Management.

[7]  Nagesh N. Murthy,et al.  A framework for assessing value chain agility , 2006 .

[8]  Felix T.S. Chan,et al.  Performance Measurement in a Supply Chain , 2003 .

[9]  P. Bentler,et al.  Cutoff criteria for fit indexes in covariance structure analysis : Conventional criteria versus new alternatives , 1999 .

[10]  E. Hartmann,et al.  THE FLEXIBILITY OF LOGISTICS SERVICE PROVIDERS AND ITS IMPACT ON CUSTOMER LOYALTY: AN EMPIRICAL STUDY , 2011 .

[11]  Maria Caridi,et al.  Do virtuality and complexity affect supply chain visibility , 2010 .

[12]  A. Tiwari,et al.  Supply chain flexibility: a comprehensive review , 2015 .

[13]  F. Chan,et al.  Flexibility and adaptability in supply chains: a lesson learnt from a practitioner , 2009 .

[14]  Miryam Barad,et al.  Flexibility in logistic systems—modeling and performance evaluation , 2003 .

[15]  Robert J. Vokurka,et al.  A conceptual model of supply chain flexibility , 2003, Ind. Manag. Data Syst..

[16]  Stephan Vachon,et al.  An exploratory investigation of the effects of supply chain complexity on delivery performance , 2002, IEEE Trans. Engineering Management.

[17]  Dennis Duchon,et al.  Organizational responses to complexity: the effect on organizational performance , 2000 .

[18]  Mark A. Vonderembse,et al.  Value chain flexibility: A dichotomy of competence and capability , 2002 .

[19]  Hamid Jafari,et al.  Logistics flexibility: a systematic review , 2015 .

[20]  David F. Larcker,et al.  Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics: , 1981 .

[21]  Ron Ashkenas,et al.  Mastering Organizational Complexity: A Core Competence for 21st Century Leaders , 2014 .

[22]  Eric W. T. Ngai,et al.  An instrument for measuring supply chain flexibility for the textile and clothing companies , 2012, Eur. J. Oper. Res..

[23]  Daniel R. Krause,et al.  Re-exploring the Relationship Between Flexibility and the External Environment , 2004 .

[24]  James Aitken,et al.  A framework for understanding managerial responses to supply chain complexity , 2018 .

[25]  Thomas Y. Choi,et al.  The Supply Base and Its Complexity: Implications For Transaction Costs, Risks, Responsiveness, and Innovation , 2006 .

[26]  M. Stevenson,et al.  Flexibility from a supply chain perspective: definition and review , 2007 .

[27]  F. Sahin,et al.  A model of supply chain and supply chain decision‐making complexity , 2011 .

[28]  Hau L. Lee,et al.  The bullwhip effect in supply chains , 2015, IEEE Engineering Management Review.

[29]  Frank Y. Chen,et al.  Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information.: The Impact of Forecasting, Lead Times, and Information. , 2000 .

[30]  D. Aranda.  Service operations strategy, flexibility and performance in engineering consulting firms , 2003 .

[31]  Benita M. Beamon,et al.  Measuring supply chain performance , 1999 .

[32]  Marjolein C. J. Caniëls,et al.  Exploring supply chain flexibility in a FMCG food supply chain , 2016 .

[33]  Suresh P. Sethi,et al.  Flexibility in manufacturing: A survey , 1990 .

[34]  Scott J. Mason,et al.  Improving electronics manufacturing supply chain agility through outsourcing , 2002 .

[35]  P. Acharya,et al.  Identification and causal assessment of supply chain flexibility , 2019, Benchmarking: An International Journal.

[36]  M. Naim,et al.  Supply chain flexibility as a determinant of supplier selection , 2010 .

[37]  Peter M. Bentler,et al.  Practical Issues in Structural Modeling , 1987 .

[38]  H. Lau,et al.  On a responsive supply chain information system , 2000 .

[39]  O. Asikhia.  Marketing Decisions and Small Businesses in Lagos State: A Case Study of Furniture Making Business , 2009 .

[40]  Mohamed Mohamed Naim,et al.  The role of transport flexibility in logistics provision , 2006 .

[41]  Togar M. Simatupang,et al.  The knowledge of coordination for supply chain integration , 2002, Bus. Process. Manag. J..

[42]  Z. M. Udin,et al.  Supply chain management from the perspective of value chain flexibility: an exploratory study , 2011 .

[43]  Bernard C. Y. Tan,et al.  A Cross-Cultural Study on Escalation of Commitment Behavior in Software Projects , 2000, MIS Q..

[44]  Antoni Wibowo,et al.  A flexible three-level logistic network design considering cost and time criteria with a multi-objective evolutionary algorithm , 2013, J. Intell. Manuf..

[45]  Ambika Zutshi,et al.  Understanding and Development of Supply Chain Agility and Flexibility: A Structured Literature Review , 2017 .

[46]  Barbara B. Flynn,et al.  On Theory in Supply Chain Uncertainty and its Implications for Supply Chain Integration , 2016 .

[47]  Cecil Bozarth,et al.  The impact of supply chain complexity on manufacturing plant performance , 2009 .

[48]  Felix T.S. Chan,et al.  A review on manufacturing flexibility , 2013 .

[49]  Andreas Größler,et al.  Organisational adaptation processes to external complexity , 2006 .

[50]  A. Sánchez,et al.  Supply chain flexibility and firm performance , 2005 .

[51]  Balaji R. Koka,et al.  Networks in transition : How industry events (re)shape interfirm relationships , 1998 .

[52]  C. Blome,et al.  The Impact of Knowledge Transfer and Complexity on Supply Chain Flexibility: A Knowledge-Based View , 2013 .

[53]  Stephan M. Wagner,et al.  Structural drivers of upstream supply chain complexity and the frequency of supply chain disruptions , 2015 .

[54]  Paolo Trucco,et al.  Managing structural and dynamic complexity in supply chains: insights from four case studies , 2019, Production Planning & Control.

[55]  E. Hartmann,et al.  THE FLEXIBILITY OF LOGISTICS SERVICE PROVIDERS AND ITS IMPACT ON CUSTOMER LOYALTY: AN EMPIRICAL STUDY: The Flexibility of Logistics Service Providers and Its Impact on Customer Loyalty: An Empirical Study , 2011 .

[56]  Manoj K. Malhotra,et al.  Measuring dimensions of manufacturing flexibility , 2004 .

[57]  Vinod Kumar,et al.  Implementation and management framework for supply chain flexibility , 2006, J. Enterp. Inf. Manag..

[58]  L. F. Scavarda,et al.  A multi-tier study on supply chain flexibility in the automotive industry , 2014 .

[59]  Erika Marsillac,et al.  External knowledge acquisition and innovation: the role of supply chain network-oriented flexibility and organisational awareness , 2015 .

[60]  Zhongsheng Hua,et al.  A new method for guiding process flexibility investment: flexibility fit index , 2012 .

[61]  Kangkang Yu,et al.  Fits and misfits of supply chain flexibility to environmental uncertainty: Two types of asymmetric effects on performance , 2016 .

[62]  S. Vickery,et al.  Supply Chain Flexibility: An Empirical Study , 1999 .

[63]  Kwangyeol Ryu,et al.  Reconfiguration framework of a supply network based on flexibility strategies , 2013, Comput. Ind. Eng..

[64]  Sander de Leeuw,et al.  Assessing complexity of supply chains: evidence from wholesalers , 2013 .

[65]  Manoj K. Malhotra,et al.  A theoretical framework for analyzing the dimensions of manufacturing flexibility , 1999 .

[66]  D. Gerwin.  Manufacturing flexibility: a strategic perspective , 1993 .

[67]  I. N. Pujawan,et al.  Assessing supply chain flexibility: a conceptual framework and case study , 2004 .

[68]  I. N. Pujawan,et al.  Managing uncertainty through supply chain flexibility: reactive vs. proactive approaches , 2014 .

[69]  Andreas Otto,et al.  Does supply chain management really pay? Six perspectives to measure the performance of managing a supply chain , 2003, Eur. J. Oper. Res..

[70]  Xia Zhao,et al.  Organizational Design and Restructuring in Response to Crises: Lessons from Computational Modeling and Real-World Cases , 2006, Organ. Sci..

[71]  Mark A. Vonderembse,et al.  Logistics flexibility and its impact on customer satisfaction , 2005 .

[72]  H. V. Samalia,et al.  Mediating role of process simplification in process integration and upstream supply chain flexibility , 2018, International Journal of Productivity and Performance Management.

[73]  S. S. Rao,et al.  SUPPLY MANAGEMENT, SUPPLY FLEXIBILITY AND PERFORMANCE OUTCOMES: AN EMPIRICAL INVESTIGATION OF MANUFACTURING FIRMS , 2010 .

[74]  Jack Cadeaux,et al.  Operational flexibility: Review and meta-analysis , 2015 .

[75]  An-Yuan Chang,et al.  Prioritising the types of manufacturing flexibility in an uncertain environment , 2012 .