Purpose This study aims to theoretically hypothesise and empirically explore the relationships amongst global supply chain risks, supply chain resilience and mitigating strategies. Design/methodology/approach The study adopts supply chain resilience as a dynamic capability and resilience capability as a mediating prerequisite in addressing supply chain risk in sourcing, manufacturing and delivery. The moderating role of diverse mitigating strategies is tested to enhance supply chain resilience. Data collected via survey was used for structural equation modelling and additional tests to explore appropriate mitigating strategies for differing risk environments. Findings Achieving better supply chain resilience capability plays an important mediating role between supply chain risks and resilience, while the relationships depend on the performance of seven mitigating strategies. Research limitations/implications The findings contribute to the theoretical development of risk management issues in global supply chains by suggesting the role of supply chain resilience capability. Practical implications The findings offer managerial guidance on how to mitigate the global supply chain risk through the appropriate practice of strategies to strengthen supply chain resilience in an uncertain environment. Originality/value This is the first empirical research examining the impact of mitigating strategies on supply chain resilience. The results provide practical implications for managing uncertain events and offering theoretical insight for future research in supply chain resilience.
Purpose – A trade-off exists between product variety and supply chain (SC) performance. To help mitigate the impact on SC of increased product variety, this paper examines how variety-management activities including variety management strategy, supplier partnerships and close customer relationships affect SC flexibility and agility at different levels of customisation.\ud Design/methodology/approach – A survey-research methodology is employed using data from 363 manufacturing firms from the UK and South Korea. In particular, cluster analysis and structural equation modelling were used to evaluate the proposed model according to the level of customisation.\ud Findings – The results suggest that internal variety-management strategy and external SC integration have a positive influence on SC flexibility and agility. Customer relationships and variety-management strategies influence SC flexibility more than partnerships with suppliers whereas variety-management strategies and partnerships with suppliers influence SC agility more than customer relationships. In fact, for external integration in particular, customer relationships influence SC flexibility (i.e., reaction capability) rather than agility (i.e., reaction time) whereas partnerships with suppliers influence SC agility rather than flexibility. In a high-customisation context, close customer relationships are the most effective way to increase SC flexibility, whereas partnerships with suppliers are the most effective way to increase SC agility. In a low-customisation context, a variety management strategy and customer relationships are the most effective way to increase both SC flexibility and agility.\ud Originality/Value – This paper suggests key variety management activities to aid managers to better manage product-variety ambitions in SC under varying customisation profiles through internal and external approaches
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
This research presents findings from a sequential, mixed qualitative and quantitative method comprising five case studies and a survey of 162 different manufacturing sites where we examined how increases in product variety influence the performance of a wide range of business processes within and across the value chain of engineering, manufacturing, procurement, logistics and sales. We also identified the advantages associated with an increase in product variety and investigated the relationships between business process performance and degree of customisation. Drawing on value chain and resource-based logic, a product variety increase was found to have a differential impact on business processes and was partly contingent on the levels of customisation offered. The results provide both a better understanding of the implications and relative costs associated with product variety increases on key business processes and activities and highlight key areas of business process capability development in order to mitigate the effects of variety increases. The study also provides an example for researchers on the process and advantages of using mixed methods. The results are valuable for manufacturers considering extending their product range in order to provide more choice for customers.
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