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The efficacy of routing and flexibility on financial performance within an international manufacturing setting

Author

Listed:
  • Kelly Weeks
  • Alfred Guiffrida
  • Mahdi Safa

Abstract

Purpose - The purpose of this paper is to extend the developing body of knowledge on supply chain performance by addressing the impact of resource commitment (RC), product route efficiency (PRE), and manufacturing flexibility (MF) on a firm’s financial performance (FP) has a direct impact on supply chain operations. Design/methodology/approach - Survey questionnaires were developed in conjunction with literature guidance. Exploratory and confirmatory factor analysis was used in conjunction with structural equation modeling to give a robust analysis of the problem setting. Findings - Discoveries herein indicate that committing resources in itself is insufficient to adequately increase FP over the long term. However, the mediating variables of MF and PRE were found to significantly improve a firm’s bottom line. Originality/value - Prior research has been somewhat lacking and inconsistent with regards to the nature of causal and mediating relationships found between RC, PRE, MF, and a firm’s financial performance. Given the increasing global nature of competition, understanding the relationships between potential factors that could positively impact a firm’s FP has a large potential direct impact and benefit on supply chain operations.

Suggested Citation

  • Kelly Weeks & Alfred Guiffrida & Mahdi Safa, 2018. "The efficacy of routing and flexibility on financial performance within an international manufacturing setting," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 67(2), pages 341-365, February.
    • Handle: RePEc:eme:ijppmp:ijppm-09-2016-0209
    DOI: 10.1108/IJPPM-09-2016-0209
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    Cited by:

    1. Hung Nguyen & George Onofrei & Norma Harrison & Dothang Truong, 2020. "The influence of cultural compatibility and product complexity on manufacturing flexibility and financial performance," Operations Management Research, Springer, vol. 13(3), pages 171-184, December.
    2. Marta Pérez-Pérez & Canan Kocabasoglu-Hillmer & Ana María Serrano-Bedia & María Concepción López-Fernández, 2019. "Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 1-23, December.

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