IDEAS home Printed from https://ideas.repec.org/a/spr/opmare/v10y2017i1d10.1007_s12063-016-0120-1.html
   My bibliography  Save this article

The impact of supply chain agility on business performance in a high level customization environment

Author

Listed:
  • Juneho Um

    (Liverpool Hope University)

Abstract

To improve business performance in rapidly changing environments, supply chain agility can be a crucial requisite to address responsiveness issues, especially in environments with high levels of customization. This paper examines the effect of supply chain agility on customer service, differentiation, and business performance. A survey research methodology was employed using a sample of 156 manufacturing firms that provide high levels of customization. In particular, structural equation modeling (SEM) was employed to evaluate the proposed model. The results suggest that supply chain agility influences customer service and differentiation positively. However, it does not affect business performance directly; instead, better business performance can be achieved and mediated through improved customer service and differentiation. In particular, differentiation through customer service is the most effective way to improve business performance, and supply chain agility can help to achieve high-level customer service. The paper advises managers on details of how to fulfil their business performance ambitions better through suggested key agile supply chain management activities.

Suggested Citation

  • Juneho Um, 2017. "The impact of supply chain agility on business performance in a high level customization environment," Operations Management Research, Springer, vol. 10(1), pages 10-19, June.
    • Handle: RePEc:spr:opmare:v:10:y:2017:i:1:d:10.1007_s12063-016-0120-1
    DOI: 10.1007/s12063-016-0120-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12063-016-0120-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12063-016-0120-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Agarwal, Ashish & Shankar, Ravi & Tiwari, M.K., 2006. "Modeling the metrics of lean, agile and leagile supply chain: An ANP-based approach," European Journal of Operational Research, Elsevier, vol. 173(1), pages 211-225, August.
    2. Otto, Andreas & Kotzab, Herbert, 2003. "Does supply chain management really pay? Six perspectives to measure the performance of managing a supply chain," European Journal of Operational Research, Elsevier, vol. 144(2), pages 306-320, January.
    3. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    4. Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
    5. Kamalini Ramdas & Robert E. Spekman, 2000. "Chain or Shackles: Understanding What Drives Supply-Chain Performance," Interfaces, INFORMS, vol. 30(4), pages 3-21, August.
    6. Marshall L. Fisher & Christopher D. Ittner, 1999. "The Impact of Product Variety on Automobile Assembly Operations: Empirical Evidence and Simulation Analysis," Management Science, INFORMS, vol. 45(6), pages 771-786, June.
    7. Suresh Kotha & Daniel Orne, 1989. "Generic manufacturing strategies: A conceptual synthesis," Strategic Management Journal, Wiley Blackwell, vol. 10(3), pages 211-231, May.
    8. Hughes, Paul & Morgan, Robert E., 2008. "Fitting strategic resources with product-market strategy: Performance implications," Journal of Business Research, Elsevier, vol. 61(4), pages 323-331, April.
    9. Sharifi, H. & Zhang, Z., 1999. "A methodology for achieving agility in manufacturing organisations: An introduction," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 7-22, May.
    10. Baker, Peter, 2008. "The design and operation of distribution centres within agile supply chains," International Journal of Production Economics, Elsevier, vol. 111(1), pages 27-41, January.
    11. Swafford, Patricia M. & Ghosh, Soumen & Murthy, Nagesh, 2008. "Achieving supply chain agility through IT integration and flexibility," International Journal of Production Economics, Elsevier, vol. 116(2), pages 288-297, December.
    12. Meyr, H., 2004. "Supply chain planning in the German automotive industry," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36062, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yoon Kyung Lee, 2021. "Transformation of the Innovative and Sustainable Supply Chain with Upcoming Real-Time Fashion Systems," Sustainability, MDPI, vol. 13(3), pages 1-14, January.
    2. Mohammad Iranmanesh & Kavigtha Mohan Kumar & Behzad Foroughi & Reza Kian Mavi & Ng Hui Min, 2021. "The impacts of organizational structure on operational performance through innovation capability: innovative culture as moderator," Review of Managerial Science, Springer, vol. 15(7), pages 1885-1911, October.
    3. Man Zhu & Hongyan Gao, 2021. "The antecedents of supply chain agility and their effect on business performance: an organizational strategy perspective," Operations Management Research, Springer, vol. 14(1), pages 166-176, June.
    4. Zhang, Yimeng & Ma, Xinyu & Pang, Jianing & Xing, Hailong & Wang, Jian, 2023. "The impact of digital transformation of manufacturing on corporate performance — The mediating effect of business model innovation and the moderating effect of innovation capability," Research in International Business and Finance, Elsevier, vol. 64(C).
    5. So Ra Park & Sung Tae Kim & Hong-Hee Lee, 2022. "Green Supply Chain Management Efforts of First-Tier Suppliers on Economic and Business Performances in the Electronics Industry," Sustainability, MDPI, vol. 14(3), pages 1-23, February.
    6. Liliana Avelar-Sosa & Jorge L. García-Alcaraz & José M. Mejía-Muñoz & Aidé A. Maldonado-Macías & Giner Alor Hernández, 2018. "Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    7. Qining Deng & K. Noorliza, 2023. "Integration, Resilience, and Innovation Capability Enhance LSPs’ Operational Performance," Sustainability, MDPI, vol. 15(2), pages 1-22, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Um, Juneho & Lyons, Andrew & Lam, Hugo K.S. & Cheng, T.C.E. & Dominguez-Pery, Carine, 2017. "Product variety management and supply chain performance: A capability perspective on their relationships and competitiveness implications," International Journal of Production Economics, Elsevier, vol. 187(C), pages 15-26.
    2. Sujan Piya & Ahm Shamsuzzoha & Mohammad Khadem & Nasr Al-Hinai, 2020. "Identification of Critical Factors and Their Interrelationships to Design Agile Supply Chain: Special Focus to Oil and Gas Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 263-281, September.
    3. Lyons, Andrew Charles & Um, Juneho & Sharifi, Hossein, 2020. "Product variety, customisation and business process performance: A mixed-methods approach to understanding their relationships," International Journal of Production Economics, Elsevier, vol. 221(C).
    4. Yusuf, Yahaya Y. & Gunasekaran, Angappa & Musa, Ahmed & Dauda, Mohammed & El-Berishy, Nagham M. & Cang, Shuang, 2014. "A relational study of supply chain agility, competitiveness and business performance in the oil and gas industry," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 531-543.
    5. Chang Juck Suh & In Tae Lee, 2018. "An Empirical Study on the Manufacturing Firm’s Strategic Choice for Sustainability in SMEs," Sustainability, MDPI, vol. 10(2), pages 1-23, February.
    6. Ilkka Sillanpaa & Pekka Kess, 2011. "Supply Chain Performance Measurement Framework for Manufacturing Industries – A Theoretical Approach," MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    7. Alfalla-Luque, Rafaela & Machuca, José A.D. & Marin-Garcia, Juan A., 2018. "Triple-A and competitive advantage in supply chains: Empirical research in developed countries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 48-61.
    8. Ogulin, R. & Selen, W. & Ashayeri, J., 2010. "Determinants of Informal Coordination in Networked Supply Chains," Discussion Paper 2010-133, Tilburg University, Center for Economic Research.
    9. Santanu Mandal & Souvik Roy & G. Amar Raju, 2016. "Tourism supply chain agility: an empirical examination using resource-based view," International Journal of Business Forecasting and Marketing Intelligence, Inderscience Enterprises Ltd, vol. 2(2), pages 151-173.
    10. Saghiri, Soroosh S. & Barnes, Stuart J., 2016. "Supplier flexibility and postponement implementation: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 173(C), pages 170-183.
    11. Wong, Christina W.Y. & Lai, Kee-hung & Ngai, E.W.T., 2009. "The role of supplier operational adaptation on the performance of IT-enabled transport logistics under environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 122(1), pages 47-55, November.
    12. Osama Musa Ali Al-Darras & Cem Tanova, 2022. "From Big Data Analytics to Organizational Agility: What Is the Mechanism?," SAGE Open, , vol. 12(2), pages 21582440221, June.
    13. Ciampi, Francesco & Faraoni, Monica & Ballerini, Jacopo & Meli, Francesco, 2022. "The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    14. Rameshwar Dubey & Tripti Singh & Omprakash K. Gupta, 2015. "Impact of Agility, Adaptability and Alignment on Humanitarian Logistics Performance: Mediating Effect of Leadership," Global Business Review, International Management Institute, vol. 16(5), pages 812-831, October.
    15. Ivanov, Dmitry & Sokolov, Boris & Kaeschel, Joachim, 2010. "A multi-structural framework for adaptive supply chain planning and operations control with structure dynamics considerations," European Journal of Operational Research, Elsevier, vol. 200(2), pages 409-420, January.
    16. Brusset, Xavier, 2016. "Does supply chain visibility enhance agility?," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 46-59.
    17. Tortorella, Guilherme Luz & Miorando, Rogério & Marodin, Giuliano, 2017. "Lean supply chain management: Empirical research on practices, contexts and performance," International Journal of Production Economics, Elsevier, vol. 193(C), pages 98-112.
    18. Ranganathan, C. & Teo, Thompson S.H. & Dhaliwal, Jasbir, 2011. "Web-enabled supply chain management: Key antecedents and performance impacts," International Journal of Information Management, Elsevier, vol. 31(6), pages 533-545.
    19. Maiga, Adam S. & Nilsson, Anders & Ax, Christian, 2015. "Relationships between internal and external information systems integration, cost and quality performance, and firm profitability," International Journal of Production Economics, Elsevier, vol. 169(C), pages 422-434.
    20. Liu, Chiung-Lin & Shang, Kuo-Chung & Lirn, Taih-Cherng & Lai, Kee-Hung & Lun, Y.H. Venus, 2018. "Supply chain resilience, firm performance, and management policies in the liner shipping industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 202-219.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:opmare:v:10:y:2017:i:1:d:10.1007_s12063-016-0120-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.