Linking supplier JIT to flexibility performance: the moderating impact of advanced manufacturing technology and human resource empowerment

Abstract

PurposeImplementing just-in-time (JIT) practices on the supplier side is a common practice to streamline procurement and production planning in realization of cost efficiency and lead time reduction. However, it is little known how supplier JIT is related to firm flexibility performance and what factors may facilitate the relationship. This study aims to investigate the effects of supplier JIT on flexibility performance and explore the moderating impacts of advanced manufacturing technology (AMT) and human resource empowerment (EMP).Design/methodology/approachThis study applies hierarchical linear regression analysis to test the proposed model based on data collected from 213 manufacturing firms in China.FindingsThe results revealed a negative influence of supplier JIT on flexibility performance. However, the adoption of AMT and EMP reconciles the conflict between supplier JIT and flexibility performance. Besides, the results indicate the positive effects of AMT and EMP on flexibility performance.Originality/valueThis study contributes to supply chain JIT literature by providing a holistic view to understand the structural relationships between supplier JIT, AMT, EMP and flexibility performance.

Impact of just-in-time (JIT) on supply chain disruption risk: the moderating role of supply chain centralization

“…Second, managers should be prepared with proper, tailored, and robust risk mitigation strategies in case of disruption risk. We encourage managers to be fully aware of the doubleedged characteristic of JIT and use robust mechanisms such as increasing the level of The results are in line with prior studies showing that supply chain JIT enables firms to reap benefits from suppliers that offset IDR (Birkie and Trucco, 2020;Suleiman et al, 2021). The results are also consistent with previous research that supply chain JIT makes supply chains (inbound and outbound flows) fragile and vulnerable to SCDR (Jadhav et al, 2015) Firms should understand the double-edge characteristics of supply chain JIT.…”

“…In a similar vein, supplier JIT focuses on reducing inventories in safety capacity, lead time, and stocks. The resulting risk is that a firm would be less prepared for any contingencies (Birkie, 2016;Suleiman et al, 2021;Zsidisin et al, 2005). Thus, we conjecture that supplier JIT makes firms vulnerable to SDR and propose the following hypothesis:…”

“…Some literature has also discussed the pitfall of supply chain JIT in different ways. For example, Suleiman et al (2021) indicated that supply chain JIT makes firms overly lean due to the deliberate choice of keeping minimal inventories, making the entire system at risk when unexpected events disrupt the normal flow of materials. Another pitfall of supply chain JIT is the sourcing strategy and structure used to facilitate the frequent delivery of materials required.…”

“…First, we analyze the structural relationship between supply chain JIT and SCDR. While existing studies have indicated that JIT makes firms vulnerable to disruptions (Danese et al, 2012;Jadhav et al, 2015;Suleiman et al, 2021), they have not fully uncovered the comprehensive relationships between internal, inbound, and outbound disruption risk and different dimensions of supply chain JIT. This leads to the first research question: IMDS 122,7 RQ1.…”

“…JIT is essential to the lean philosophy, which facilitates delivering the right product at the right time in the right quantity (Chen and Hua Tan, 2013; Hernandez-Matias et al , 2019). The benefits of JIT implementation have been fully investigated in the extant literature (Ruiz-Benítez et al , 2018; Suleiman et al , 2021). When applying JIT to the supply chain, the central firms are likely to reap the maximum benefits because JIT simplifies the focal firm's operational processes and transfers those costly burdens to supply chain partners (Dowlatshahi and Taham, 2009).…”