Supplier flexibility and performance: an empirical research

Abstract

PurposeA literature review conducted for this study showed that although different aspects of supply chain flexibility have been studied, research on the factors affecting supplier flexibility and the impact of supplier flexibility on supplier performance are conspicuously absent. The present study aims to fill in this gap in the literature.Design/methodology/approachA quantitative research design was adopted. Data were collected from 119 manufacturing companies operating in Turkey and analyzed by structural equation modeling.FindingsThe findings show that supplier flexibility is associated with environmental uncertainty, relationships with the buyer and the quality of information shared between the buyer and the supplier, but not with the level of information shared between the buyer and the supplier. The findings also indicate that supplier flexibility affects supplier performance.Research limitations/implicationsThe generalizability of the findings can be considered as a limitation. In the future, sector-based larger-scale studies are desirable. Also, data can be collected from both the main business and suppliers and findings may be compared.Practical implicationsThe findings of this study help decision-makers to make more informed decisions about information exchange, supplier relationships and environmental uncertainties depending on the degree of flexibility that they request from their suppliers.Originality/valueA literature review for this study indicated that there is a lack of research on the factors affecting supplier flexibility. Therefore, this research is expected to make an original contribution to the literature.

In search of supplier flexibility performance measurement

“…The high dependence on suppliers imply their important role in achieving flexibility (Kumar and Singh, 2020; Üstündag and Ungan, 2020; Bag et al , 2018). This study therefore has practical implications.…”

“…The ability to flexibly adapt has become a top priority for many companies (e.g. Üstündag and Ungan, 2020; Kumar and Singh, 2020). At the same time, the possibilities to achieve flexibility are to a large extent affected by suppliers (Kumar and Singh, 2020; Üstündag and Ungan, 2020; Bag et al , 2018).…”

“…Due to increased volatility in customer demands, the ability to flexibly adapt has become a top priority for many companies (Üstündag and Ungan, 2020; Kumar and Singh, 2020; Kuo et al , 2016; Jafari, 2015). Many types of flexibility exist, with different types – sets of situations for which flexibility is required (Abdelilah et al , 2018) – and on different levels.…”

“…Engelhardt-Nowitzki (2012) therefore encourages that flexibility be studied in a well specified way. Type-wise, to handle customers' flexibility demands, flexible production may not be enough (Üstündag and Ungan, 2020). The possibilities to achieve flexibility are also highly affected by suppliers (Kumar and Singh, 2020; Bag et al , 2018), as manufacturers typically spend 60–80% of their total cost of purchasing (Üstündag and Ungan, 2020).…”

“…Type-wise, to handle customers' flexibility demands, flexible production may not be enough (Üstündag and Ungan, 2020). The possibilities to achieve flexibility are also highly affected by suppliers (Kumar and Singh, 2020; Bag et al , 2018), as manufacturers typically spend 60–80% of their total cost of purchasing (Üstündag and Ungan, 2020). Manders et al (2017) call for insights from studying flexibility from the customer's perspective, implying supplier flexibility.…”