Examining the synergistic effect of supply chain agility, adaptability and alignment: a complementarity perspective

Abstract

Purpose Drawing on complementarity theory, this paper aims to examine the type and effect of interdependencies/interaction (i.e. complementarity or substitutability) between the supply chain capabilities of agility, adaptability and alignment. Design/methodology/approach A survey research design is adopted to collect primary and secondary data from 182 international firms. The complementarity (or substitutability) of three As (agile, adaptable and aligned) were analyzed in three-way and pairwise interactions; both, correlation and performance differences methods of testing the type of interactions among the system’s elements were used. Supply chain-centric and firm-centric performance metrics were used to examine the interaction types. Findings The study did not find empirical evidence of three-way complementarity between the three As. However, this paper did find evidence of complementarity in bivariate interactions for alignment and adaptability. Moreover, in the performance difference method, the study found a substitute relationship between all pairs of As. Practical implications The findings related to the substitutability between the three As offer managers guidance on how to allocate their limited resources to avoid unnecessary over-or under-investing in either one of the three As. Originality/value This study helps refine prior findings related to the three As by offering evidence that firms can still achieve their performance-related goals with reduced investment commitments by taking advantage of the substitutability relationship existent between these capabilities. That is, instead of concomitantly developing all three As as past studies have suggested, managers can use the findings to determine how to prioritize their resource allocation better. Furthermore, understanding the actual interaction among the supply chain variables generally provide insights for designing the supply chain, change management in the supply chain, developing supply chain strategy and adopting best practices in the supply chain.

Strategic supply chains: a configurational perspective

“…First, instead of a piecemeal viewpoint investigating supply chain/operations management phenomena, this research adopts a system/holistic perceptive and develops configurations to predict and explain supply chains' performance outcomes (Ketcehn and Hult, 2007). Second, our study's findings expand the growing body of research in the triple-A supply chain area (e.g., Feizabadi et al , 2019a, b, 2021) by illustrating contextual conditions as well as appropriate strategic approaches and organizational structures. Third, the internal and external fit/congruence among the systems' elements is reinforced, augmenting past research that focused on these distinct elements (Gligor, 2016; Stock et al , 2000; Lee, 2002).…”

“…Similarly, Feizabadi et al (2019aFeizabadi et al ( , 2021 linked integrated As to financial and market performance. However, extant research on the triple-A supply chain lacks a multivariate coalignment perspective on the supply chain and its internal and environmental contexts and an understanding of holistic fit's performance implications.…”

“…Extended contingency arguments such as complementarity, complexity and creative perspectives (Van de Ven et al , 2013) provide more insight into strategic supply chains. From a complementarity perspective, the attributes of strategic supply chains with positive interactions will be considered to enhance the systems' performance outcome (Feizabadi et al , 2021). The complexity perspective treating the supply chain attributes as generic (i.e.…”

“…Our findings should prompt supply chain managers to reinforce within their respective organizations the precept that, under certain circumstances, embodying the three As in the supply chain leads to superior performance outcomes. Importantly, practitioners should be mindful of simultaneous or sequential capitalization of three As to generate a synergistic effect (Feizabadi et al , 2021). This research informs supply chain decision-makers to adopt a fluid organizational structure to support the triple-A supply chain.…”

Synergistic effect of cooperation and coordination to enhance the firm's supply chain adaptability and performance

“…This is an important insight for supply chain managers and helps them to allocate their resources effectively. By knowing the true interdependency between the choices, the manager can avoid under-or over-investment in supply chain activities (Siggelkow, 2002;Feizabadi et al, 2021).…”