Best-value supply chains and firms’ competitive performance: empirical studies of their linkage

Understanding influence of supply chain competencies when developing Triple-A

Purpose

To be successful in the rapidly changing global business environment, supply chains (SCs) must be agile, adaptable and aligned (Lee, 2004), a practice known as Triple-A. Therefore, the purpose of this paper is to investigate the dimensions of Triple-A SCs and their concurrent impact on all three Triple-A components.

Design/methodology/approach

The relationship among these factors is analyzed through Smart PLS-structured equation modeling (PLS-SEM) for which data have been collected from 243 SC professionals working in manufacturing organizations.

Findings

The findings of this study reveal that the relationship between visibility and adaptability are directly significant but that the negative relationship between velocity and alignment is insignificant; however, indirectly these relationships have a positive impact using the mediating effect of agility over visibility and adaptability, velocity and alignment. However, the relationship of flexibility over SC Triple-A is positively significant, visibility over agility and alignment is positively significant and velocity over agility and adaptability is also positively significant, and each impact agility over adaptability and adaptability over alignment which is significant.

Originality/value

There is a shortage of empirical studies to date that empirically provide evidence of possible relationships among Triple-A and its key dimensions when attempting to obtain Triple-A. This is the first authenticated Triple-A SC conceptual framework that provides direction to better understand the dimension and significance of Triple-A.

Strategic supply chains: a configurational perspective

Purpose

Drawing on configuration theory and adopting a holistic perspective, the authors aim to explore strategic supply chain elements' interaction with internal and external contextual conditions. Specifically, they evaluate multivariate co-alignment of supply chain's capabilities (agility, adaptability, alignment), adhocracy organizational structure and environmental uncertainty (dynamism, munificence and complexity) that lead to superior performance outcomes (supply chain cycle time, financial performance, market performance).

Design/methodology/approach

A survey research design is adopted to collect primary and secondary data from 182 international firms. Cluster analysis and profile deviation techniques are employed first to derive a taxonomy of strategic supply chains and then examine multivariate co-alignment.

Findings

The analysis reveals that four groups of triple-A supply chains could emerge. It is found that strategic supply chains exhibit a flexible/organic/fluid organizational structure and a high level of triple-As in their processes. These supply chains perform superior to a higher level of environmental complexity, munificence and dynamism.

Practical implications

This study's results provide insights for practitioners by informing their investment decisions for developing strategic supply chains. Specifically, this research highlights the contextuality of triple-A supply chains and offers best practices to capitalize on strategic supply chains.

Originality/value

Executives in organizations require a holistic understanding of various elements to ensure that the organizational system as a whole performs effectively. This research offers insights into the interdependencies of triple-A supply chains with other organizational and external environmental elements. Noteworthy implications for scholarship in operations/supply chain management and supply chain practitioners are presented.

Identification of the Dynamic Capabilities Ecosystem—A Systems Thinking Perspective

An in-depth look at the extant literature of dynamic capabilities (DCs) shows that the focus has been on the development, justification, and validation of individual DCs through both conceptual and empirical methods. We argue that studying DCs in isolation may not offer a complete practical meaning. Organizations being complex systems, multiple combinations of capabilities and their interrelationships (as a DC system) lead to a sustained competitive advantage, and this effect cannot be attributed to a single DC in isolation. Through this article, we present a system theoretic view of DCs and subsequently propose the concept of a DC ecosystem using a systems thinking perspective. We use the logical reasoning approach of justificationism to present the associated propositions. We conclude with a discussion of managerial implications and suggestions for future research.

Exploring the consequences of judgmental and quantitative forecasting on firms' competitive performance in supply chains

Purpose

The purpose of this study is to examine the impacts of different forecasting methods (judgmental, quantitative and mixed forecasting) on firms' supply chains and competitive performance.

Design/methodology/approach

Working with three groups of manufacturing companies, we explore the consequences of judgmental, quantitative and mixed forecasting methods on firms' competitive performance in supply chains. The validity of constructs and path relationships was examined using structural equation modeling (SEM).

Findings

Our findings indicate that supply chain efficiency influences both cost reduction and customer satisfaction. In addition, the three dimensions of supply chain performance are shown to be direct antecedents of competitive performance. Our empirical results reveal that although all studied forecasting methods meaningfully influence supply chain performance, the mixed method, compared to the other two methods, has greater capabilities to enhance supply chain performance.

Originality/value

This research provides originality and insight into supply chain practices through forecasting methods to improve competitive performance.

The structural impact of supply chain management teams

Purpose

In today’s constantly evolving global business environment, multidivisional firms (MDFs) require an organizational structure for supply chain management (SCM) that facilitates the development of supply chain agility. This research aims to investigate what structural elements of an MDF’s SCM team contribute to supply chain agility.

Design/methodology/approach

A two-sample field study was conducted. Four MDFs with top-performing supply chains (Sample 1) were first studied to identify agility-supporting structural elements. Then, quantitative data from 35 MDFs with contrasting levels of supply chain agility (Sample 2) were collected to test the theoretical propositions advanced from Sample 1 findings.

Findings

The results reveal four structural elements that exert a positive impact on an MDF’s supply chain agility: hierarchical position of the divisional top supply chain executive, scope of divisional supply chain operations, hierarchical position of the top supply chain executive at the headquarters and scope of SCM coordination by the headquarters.

Originality/value

First, this study provides a comparatively comprehensive understanding of the SCM organization structure in MDFs. Second, this study is one of the first to provide empirically supported theoretical insights about the linkage between an MDF’s organizational structure for SCM and supply chain agility.

Benchmarking the triple-A supply chain: orchestrating agility, adaptability, and alignment

Purpose

Limited research examines the triple-A supply chain of agility, adaptability and alignment. The purpose of this paper is to draw on extant literature under the lens of resource orchestration theory to develop a comprehensive framework of antecedents and consequences of triple-A supply chains, allowing both scholars and practitioners to benchmark and prioritize triple-A capabilities.

Design/methodology/approach

A systematic literature review focusing on four supply chain journals is conducted to integrate the distinct bodies of knowledge on supply chain agility, adaptability and alignment.

Findings

The integration of this literature identifies common and distinct antecedents and consequences of each, developing a comprehensive model of triple-A supply chains as well as proposing opportunities for further study.

Originality/value

Limited studies to date have an integrated agility, adaptability and alignment, thus lacking a comprehensive framework of triple-A supply chains. Managers can use the findings to determine actions needed to deploy triple-A capabilities and better understand the resulting potential benefits.

An empirical examination of firm financial performance along dimensions of supply chain resilience

Purpose

This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value.

Design/methodology/approach

Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance.

Findings

The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience.

Originality/value

First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.