Evaluating Performance Measurement Metrics for Lean and Agile Supply Chain Strategies in Large Enterprises

Abstract

Previous research has identified metrics that are applicable to both lean and agile strategies and has hypothesised that financial and efficiency metrics are more relevant to the lean supply chain strategy, while customer service and flexibility metrics are more relevant to the agile supply chain strategy. These metrics need to be assessed empirically to confirm their relevance and validate these hypotheses. Drawing upon contingency theory, which mandates that supply chain performance metrics should vary based on the supply chain strategy, the research methodology resulted in developing a survey instrument that has been subsequently tested in 45 large enterprises and analysed by Partial Least Square-Path Modelling using XLSTAT software v.2020.4. The results support the existing beliefs and suggest that financial and efficiency indicator sets are more applicable to the lean supply chain strategy, whereas customer service and flexibility indicator sets are more pertinent to the agile supply chain strategy. This research distinguishes itself, through its novelty, in validating an adaptable framework for supply chain performance metrics, acknowledging the necessity of developing a suitable supply chain performance system. Ultimately, the findings of this research might serve as an initial foundation for practitioners in shaping the design of supply chain performance systems since the strong relationship between SC strategies and specific metrics may serve as a strategic approach to evaluate and improve performance.

The Influence of Financial Indicators on Vietnamese Enterprise’s Sustainability Reports Disclosing Process

“…By investigating this relationship, the research seeks to answer fundamental questions about the interplay between financial performance and sustainability disclosures in the Vietnamese context. Ultimately, this research endeavors to shed light on the factors driving sustainability reporting in Vietnam and contribute to the broader understanding of corporate disclosure practices (Chen et al 2024;Chowdhury et al 2024;Dahinine et al 2024;Deng et al 2024). In today's era, the phrase "Sustainable Development" appears more and more in the annual reports of businesses around the world, and they increasingly focus on the transparent disclosure of non-financial information, like the impact of business activities on society and the environment, instead of just paying attention to economic efficiency.…”