Evaluating reliability and validity of lean, agile and leagile supply chain constructs in Indian manufacturing industry

Supply chain management (SCM) strategy is framed on the basis of competitive strategy (CS) of the firm. Three supply chain strategies (SCS) are evident in SCM literature: cost efficiency, time responsiveness and hybrid of the two. For each of these strategies, three types of supply chains are prescribed: lean, agile and leagile, respectively. Thus, for a firm to achieve strategic alignment between CS and SCS, it is a matter of utter importance to focus on relevant constructs. However, there is a deficiency of standard constructs for these types of supply chains in the SCM literature. Thus, this article addresses the issue of lack of standard constructs in frameworks of lean, agile and leagile supply chain. This objective is achieved by evaluating reliability and validity of lean, agile and leagile supply chain constructs in Indian manufacturing industry. Principle component analysis is performed on these constructs to find out the pillars of each type of supply chain followed by evaluating reliability and validity of these pillars to establish the underlying constructs. Finally, using the results of the study, a framework for lean, agile and leagile supply chain is proposed.

[1]  D. Towill The impact of business policy on bullwhip induced risk in supply chain management , 2005 .

[2]  P. Baker Designing distribution centres for agile supply chains , 2006 .

[3]  Manoj Kumar Tiwari,et al.  Modeling the metrics of lean, agile and leagile supply chain: An ANP-based approach , 2006, Eur. J. Oper. Res..

[4]  Gunjan Soni,et al.  A critical analysis of supply chain management content in empirical research , 2011, Bus. Process. Manag. J..

[5]  Kenn Steger-Jensen,et al.  Buyer–supplier relationships and planning solutions , 2007 .

[6]  M. Christopher,et al.  The Supply Chain Strategy Conundrum: To be Lean Or Agile or To be Lean And Agile? , 2002 .

[7]  Ting Chi,et al.  Alignment between business environment characteristics, competitive priorities, supply chain structures, and firm business performance , 2009 .

[8]  Jifeng Mu,et al.  New product development in Chinese SMEs: Key success factors from a managerial perspective , 2007 .

[9]  R. Strattona,et al.  The strategic integration of agile and lean supply , 2022 .

[10]  Ravi Shankar,et al.  The role of human factors in agile supply chains , 2009 .

[11]  Yahia Zare Mehrjerdi,et al.  The collaborative supply chain , 2009 .

[12]  Danny C. K. Ho,et al.  Empirical research on supply chain management: A critical review and recommendations , 2002 .

[13]  David Taylor Parallel Incremental Transformation Strategy: An Approach to the Development of Lean Supply Chains , 1999 .

[14]  Karl Raimund Sir Popper,et al.  The Myth of the Framework : In Defence of Science and Rationality , 1997 .

[15]  M. Christopher,et al.  An Integrated Model for the Design of Agile Supply Chains. , 2001 .

[16]  Cai-feng Li Agile Supply Chain: competing in volatile markets , 2009 .

[17]  Enver Yücesan,et al.  Transshipments: An emerging inventory recourse to achieve supply chain leagility , 2002 .

[18]  Yasunori Fujita,et al.  A new analytical framework of agile supply chain strategies , 2007 .

[19]  M. Bruce,et al.  Buyer behaviour for fast fashion , 2006 .

[20]  Jayant V. Saraph,et al.  An Instrument for Measuring the Critical Factors of Quality Management , 1989 .

[21]  M. Christopher,et al.  A taxonomy for selecting global supply chain strategies , 2006 .

[22]  M. Bruce,et al.  Lean or agile: A solution for supply chain management in the textiles and clothing industry? , 2004 .

[23]  E. S. Buffa Research in Operations Management , 1980 .

[24]  Andrew Cox,et al.  Stairways to heaven or treadmills to oblivion , 2007 .

[25]  S. G. Deshmukh,et al.  Manufacturing strategy: Experiences from Indian manufacturing companies , 2001 .

[26]  MollerCharles The role of enterprise systems in supply chain networks: a taxonomy of supply chain strategies , 2006 .

[27]  Milind Kumar Sharma,et al.  An application of the integrated AHP-PGP model for performance measurement of supply chain management , 2009 .

[28]  Markus Biehl,et al.  International supply chain agility ‐ Tradeoffs between flexibility and uncertainty , 2001 .

[29]  Göran Svensson,et al.  Supply chain management: the re‐integration of marketing issues in logistics theory and practice , 2002 .

[30]  Jason W. Osborne,et al.  Best practices in exploratory factor analysis: four recommendations for getting the most from your analysis. , 2005 .

[31]  Richard B. Chase,et al.  A classification and evaluation of research in operations management , 1980 .

[32]  D. Towill,et al.  Engineering the leagile supply chain , 2000 .

[33]  M. Christopher,et al.  Measuring agile capabilities in the supply chain , 2001 .

[34]  M. Christopher,et al.  Building the Resilient Supply Chain , 2004 .

[35]  Angappa Gunasekaran,et al.  Agile supply chain capabilities: Determinants of competitive objectives , 2004, Eur. J. Oper. Res..

[36]  Zhan-hong Xin,et al.  Study on the agile supply chain management based on agent , 2007 .

[37]  Hossein Sharifi,et al.  Supply Chain Design and Design for Supply Chain: A balanced approach to building agile supply chains , 2006 .

[38]  Farhad Nabhani,et al.  Reducing the delivery lead time in a food distribution SME through the implementation of six sigma methodology , 2009 .

[39]  Kul Bhushan C. Saxena,et al.  Managing IT for world-class manufacturing: the Indian scenario , 2000, Int. J. Inf. Manag..

[40]  Jari Collin,et al.  Plan for supply chain agility at Nokia Lessons from the mobile infrastructure industry , 2006 .

[41]  Janek Ratnatunga,et al.  The role of marketing , 1995 .

[42]  M. Vlachopoulou,et al.  A conceptual framework for supply chain collaboration: empirical evidence from the agri‐food industry , 2007 .

[43]  M. Sharma,et al.  An integrated BSC‐AHP approach for supply chain management evaluation , 2007 .

[44]  M. Christopher,et al.  Demand chain management-integrating marketing and supply chain management , 2007 .

[45]  G. Byrne,et al.  Using a Lean Six Sigma approach to drive innovation , 2007 .

[46]  Chad W. Autry,et al.  AUTOMATIC REPLENISHMENT PROGRAMS: AN EMPIRICAL EXAMINATION , 1999 .

[47]  W. Velicer,et al.  Affects of variable and subject sampling on factor pattern recovery. , 1998 .

[48]  Brian Fynes,et al.  Organisational learning and lean supply relationships: the case of Apple Ireland , 1998 .

[49]  Clyde W. Holsapple,et al.  A unified model of supply chain agility : the work-design perspective , 2008 .

[50]  Denis Royston Towill,et al.  Total cycle time compression and the agile supply chain , 1999 .

[51]  Paul G. Maropoulos,et al.  Establishing agile supply networks through competence profiling , 2008, Int. J. Comput. Integr. Manuf..

[52]  J. Mentzer,et al.  The role of marketing in supply chain management , 2000 .

[53]  Ravi Shankar,et al.  Creating flex-lean-agile value chain by outsourcing: An ISM-based interventional roadmap , 2008, Bus. Process. Manag. J..

[54]  Hau L. Lee,et al.  Mitigating supply chain risk through improved confidence , 2004 .

[55]  Jim Browne,et al.  A review of performance measurement: Towards performance management , 2005, Comput. Ind..

[56]  D. Lambert,et al.  SUPPLY CHAIN MANAGEMENT , 2003 .

[57]  Mark Francis,et al.  Lean Information and Supply Chain Effectiveness , 1998 .

[58]  H. Nachtmann,et al.  SUPPLY CHAIN INFORMATION SHARING IN A VENDOR MANAGED INVENTORY PARTNERSHIP , 2004 .

[59]  John B. Houlihan International Supply Chains: A New Approach , 1988 .

[60]  Aleda V. Roth,et al.  Marketing and supply chain management: a collaborative research agenda , 2008 .

[61]  L. Harlow,et al.  Causation issues in structural equation modeling research , 1994 .

[62]  Dianne M. Finkelstein,et al.  A Beginner's Guide to Structural Equation Modeling , 2005, Technometrics.

[63]  T. Stank,et al.  Applying the strategy‐structure‐performance paradigm to the supply chain environment , 2005 .

[64]  Ruth Banomyong,et al.  Implementing leagility in reverse logistics channels , 2008 .

[65]  Thomas Y. Choi,et al.  Survey research in operations management: historical analyses , 2003 .

[66]  Iain Reid,et al.  Achieving agility in supply chain through simultaneous “design of” and “design for” supply chain , 2006 .

[67]  T.C.E. Cheng,et al.  Identifying potential barriers to total quality management using principal component analysis and correspondence analysis , 1997 .

[68]  M. Barratt,et al.  Exploring the experiences of collaborative planning initiatives , 2001 .

[69]  A. Beulens,et al.  Supply Chain Design in the Food Industry , 2001 .

[70]  T. T. Narendran,et al.  Variants, solution approaches and applications for Vehicle Routing Problems in supply chain: agile framework and comprehensive review , 2007 .

[71]  B. S. Sahay,et al.  Impact of agile supply chains' delivery practices on firms' performance: cluster analysis and validation , 2009 .

[72]  Barbara M. Byrne,et al.  Structural equation modeling with EQS : basic concepts, applications, and programming , 2000 .

[73]  J. Mikkola,et al.  Coordination and sharing logistics information in leagile supply chains , 2007 .

[74]  Dennis W. Krumwiede,et al.  The relationship of logistics to supply chain management: developing a common industry definition , 2001, Ind. Manag. Data Syst..

[75]  David M. Lyth,et al.  Integrated Supply Management: The Basis for Professional Development , 1992 .

[76]  Liang-Chieh Cheng Impacts of Radio Frequency Identification technology on logistics performance in agile supply chain , 2007 .

[77]  A. Gunasekaran,et al.  Software Agents: Enabling Dynamic Supply Chain Management for a Build to Order Product Line , 2002, International Conference on Internet Computing.

[78]  Kozo Koura,et al.  Comparing the UBEM Vedic matrix and the TQM elements deployment model using principal component analysis , 2008 .

[79]  Tenko Raykov,et al.  Issues in applied structural equation modeling research , 1995 .

[80]  Stephen G. West,et al.  Structural equation models with non-normal variables: Problems and remedies , 1995 .

[81]  D. Lambert,et al.  SUPPLY CHAIN MANAGEMENT -- MORE THAN A NEW NAME FOR LOGISTICS , 1997 .

[82]  Steven B. Lyman,et al.  Supply chain management: a strategic perspective , 2002 .

[83]  Clyde W. Holsapple,et al.  Supply chain agility: scale development , 2009 .

[84]  Gunjan Soni,et al.  The strategic fit between “competitive strategy” and “supply chain strategy” in Indian manufacturing industry: an empirical approach , 2011 .

[85]  David J. Barnes,et al.  An analytic network process-mixed integer multi-objective programming model for partner selection in agile supply chains , 2009 .

[86]  Joseph L. Cavinato,et al.  Fitting Purchasing to the Strategic Firm: Frameworks, Processes, and Values , 1990 .

[87]  Tom Page,et al.  Requirements for change in a traditional industry to be competitive: transformation towards an agile supply chain , 2006 .

[88]  Chandrasekharan Rajendran,et al.  An instrument for measuring total quality management implementation in manufacturing-based business units in India , 1999 .

[89]  G. S. Dangayach,et al.  Performance measurement of information systems in small and medium sized enterprises: a strategic perspective , 2008 .

[90]  G. Giménez,et al.  Development of lean supply chains: a case study of the Catalan pork sector , 2010 .

[91]  P. Daugherty,et al.  Lean Launch: Managing Product Introduction Risk Through Response‐Based Logistics , 1999 .

[92]  Xianggui Qu,et al.  Multivariate Data Analysis , 2007, Technometrics.

[93]  T. Skjøtt-Larsen,et al.  Supply Chain Management: In Theory and Practice , 2005 .

[94]  Richard Lamming,et al.  Squaring lean supply with supply chain management , 1996 .

[95]  Manisra Baramichai,et al.  Agile supply chain transformation matrix: an integrated tool for creating an agile enterprise , 2007 .

[96]  Fariborz Rahimnia,et al.  Supply chain leagility in professional services: how to apply decoupling point concept in healthcare delivery system , 2010 .

[97]  Elaine Aspinwall,et al.  Total quality management implementation frameworks: Comparison and review , 2000 .

[98]  Brian Squire,et al.  Supply Chain Management: theory and practice - the emergence of an academic discipline? , 2006 .

[99]  M. Christopher,et al.  CREATING AGILE SUPPLY CHAINS IN THE FASHION INDUSTRY , 2004 .

[100]  Mihailo Ristic,et al.  System for enhancing supply chain agility through exception handling , 2003 .

[101]  Kristopher J Preacher,et al.  Sample Size in Factor Analysis: The Role of Model Error , 2001, Multivariate behavioral research.

[102]  L. Z. Stec,et al.  Supply chain agility: the influence of industry culture on asset capabilities within capital intensive industries , 2005 .

[103]  I. Chen,et al.  Understanding supply chain management: critical research and a theoretical framework , 2004 .

[104]  Nikos Karacapilidis,et al.  Supporting collaboration in the development and management of lean supply networks , 2008 .

[105]  Ching-Torng Lin,et al.  Agility index in the supply chain , 2006 .

[106]  B. Price A First Course in Factor Analysis , 1993 .

[107]  Xiande Zhao,et al.  Supply Chain Strategy, Product Characteristics, and Performance Impact: Evidence from Chinese Manufacturers , 2009, Decis. Sci..

[108]  C. Watts,et al.  Linking Purchasing to Corporate Competitive Strategy , 1992 .

[109]  P. Fung Managing purchasing in a supply chain context – evolution and resolution , 1999 .

[110]  P. Baker The design and operation of distribution centres within agile supply chains , 2008 .

[111]  J. R. Carter,et al.  THE IMPACT OF TRANSPORTATION COSTS ON SUPPLY CHAIN MANAGEMENT. IN: TRANSPORT LOGISTICS , 2002 .

[112]  L. Barnes,et al.  Fast fashioning the supply chain: shaping the research agenda , 2006 .

[113]  R. Masson,et al.  Managing complexity in agile global fashion industry supply chains , 2007 .

[114]  Pavel Castka,et al.  Benchmarking leagility in mass services , 2009 .

[115]  K. Tan,et al.  Supply Chain M anagement and Its Impact on Purchasing , 2000 .

[116]  Bob D. Cutler,et al.  Do the Management Components of Supply Chain Management Affect Logistics Performance , 2004 .

[117]  A. Sohal,et al.  Critical success factors in agile supply chain management ‐ An empirical study , 2001 .

[118]  Paul Hong,et al.  Organizational culture and supply chain strategy: a framework for effective information flows , 2008, J. Enterp. Inf. Manag..

[119]  R. McIvor Lean supply: the design and cost reduction dimensions , 2001 .

[120]  Joe Sanderson,et al.  The challenges of supply strategy selection in a project environment: evidence from UK naval shipbuilding , 2008 .

[121]  D. Russell,et al.  Building supply chain collaboration: a typology of collaborative approaches , 2007 .

[122]  G. Hutcheson The Multivariate Social Scientist: Introductory Statistics Using Generalized Linear Models , 1999 .

[123]  Danny Berry,et al.  Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain , 1999 .

[124]  Dr. Jay Bal VIRTUAL TEAMING IN THE AGILE SUPPLY CHAIN , 2008 .

[125]  Ronald H. Ballou,et al.  The evolution and future of logistics and supply chain management , 2006 .

[126]  David Helliwell Taylor,et al.  Strategic considerations in the development of lean agri‐food supply chains: a case study of the UK pork sector , 2006 .

[127]  D. Towill,et al.  Supply chain migration from lean and functional to agile and customised , 2000 .

[128]  A Osted A balanced approach , 1973, The Canadian journal of psychiatric nursing.

[129]  Catherine L. Wang,et al.  The development and validation of the organisational innovativeness construct using confirmatory factor analysis , 2004 .

[130]  Felix T.S. Chan,et al.  Performance optimization of a leagility inspired supply chain model: a CFGTSA algorithm based approach , 2009 .

[131]  L.M.J. Michaels,et al.  The making of a lean aerospace supply chain , 1999 .

[132]  Chris Hakes Total quality management : the key to business improvement : a Pera International executive briefing , 1991 .

[133]  R. MacCallum,et al.  Sample size in factor analysis. , 1999 .

[134]  Gunjan Soni,et al.  Performance value analysis for the justification of the leagile supply chain , 2009 .

[135]  G. Hutcheson The Multivariate Social Scientist , 1999 .

[136]  Wolfgang J. Sievert,et al.  Building a supply chain , 2004 .