Can Lean and Agile organisations within the UK automotive supply chain be distinguished based upon contextual factors?

Abstract

Purpose The purpose of this paper is to robustly establish whether firms are implementing Lean or Agile production in the automotive supply chain (SC) and, by drawing on contingency theory (CT) as our theoretical lens, independently determine whether Lean and Agile firms can be distinguished based upon contextual factors. Design/methodology/approach Primary quantitative data from 140 firms in the West Midlands (UK) automotive industry were obtained via a constructed survey. Analysis incorporated the use of logistic regressions to calculate the probability of Lean and Agile organisations belonging to different groups amongst the contextual factors investigated. Findings Lean and Agile firms co-exist in the automotive SC and Lean firms were found to be at higher tiers of the SC, while Agile firms were found to be at lower tiers. Originality/value The originality of this study lies within the novel methodological attempt used to distinguish Lean and Agile production, based upon the contextual factors investigated. Not only is the importance of CT theoretically approved, but “received wisdom” within SC management is also contested. Extant literature propagates that the automotive SC is comprised of organisations that predominantly adopt Lean production methods, and that in SCs comprised of both Lean and Agile organisations, the firms closer to the customer will adopt more flexible (Agile) practices, while those that operate upstream will adopt more efficient (Lean) practices. The findings from this study have implications for theory and practice, as Lean and Agile firms can be found in the automotive SC without any relationship to the value-adding process. To speculate as to why the findings contest existing views, resource dependence theory and, more specifically, a power perspective, was invoked. The authors provide readers with a new way of thinking concerning complicated SCs and urge that the discipline of SC management adopts a “fourth” SC model, depicting a new Lean and Agile SC configuration.

An empirical analysis of the relationship between supply chain strategies, product characteristics, environmental uncertainty and performance

“…As lean and agile SC strategies present different characteristics, which are more suitable for each company depending on product and environmental features (as discussed before), it is expected that those strategies support companies differently, according to the specific environments in which they compete. That is, both efficiency and responsiveness, when needed, are expected to lead to good results (Qasar and Hall, 2018). According to previous studies, the lack of a clear strategy can be detrimental to performance, while the combination of lean and agile can support companies in achieving better performance.…”

“…To respond to the different requirements of the business environments, two main approaches are presented and discussed in the literature (Fisher, 1997;Selldin and Olhager, 2007;Qi et al, 2009;Qasar and Hall, 2018;Stratton, 2018): increasing efficiency (usually described as a lean or efficient SC) and/or responding quickly to market demands (usually described as an agile or responsive SC). The lean paradigm, similar to an efficient SC, as proposed by Fisher (1997), focuses on the improvement of the efficiency of the business processes and on the elimination of waste (Naylor et al, 1999;Christopher and Towill, 2002;Cigolini et al, 2004;Qi et al, 2011;Qrunfleh and Tarafdar, 2014).…”

The self-thinking supply chain

“…Similarly, Christopher and Holweg (2011) have pointed to the need for structural flexibility and adaptability in supply chain design, given the prevailing volatility and turbulence in the business environment. More recently, Qamar and Hall (2018) investigated the distinctions between lean and agile organizations within the UK automotive sector. Whilst there is ongoing debate around the correct sequencing of lean and agile capabilities/processes/supply chain nodesthere is, nevertheless, an emerging consensus in both the literature and in practice that: agile capabilities are a key pillar of many supply chains; and lean and agile approaches are not mutually exclusive.…”

Influence of Supply Chain Leagility on Performance of Humanitarian Aid Organizations in Kenya

“…Predominantly, the concept was discussed in the context of commercial supply chains [39] and only a few number of academicians and practitioners have linked supply chain leagility to humanitarian operations [40]. Qamar and Hall [41] found that the two paradigms of lean and agility could not co-exist (mutually exclusive) where else Purvis [40] described them as complementary concepts. The concept of supply chain leagility has been globally accepted [42].…”