Economics & Commerce
DOI: 10.18510/hssr.2019.7263
Submitted: 2019-08-20
Published: 2019-08-20

COMPLEXITIES IN A FLEXIBLE SUPPLY CHAIN AND THE ROLE OF KNOWLEDGE TRANSFER

Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh City, Vietnam; Faculty of Social Sciences and Humanities, Ton Duc Thang University, Ho Chi Minh City, Vietnam
College of Logistics and Supply Chain, Suan Sunandha Rajabhat University, Bangkok, Thailand
supply chain flexibility Knowledge complexity Indonesia

Abstract

Purpose: The current study is interested in exploring the nexus between product complexities, external and internal knowledge and supply chain flexibility of Indonesian manufacturing firms.

Methodology: The study has employed the knowledge-based view to conceptualize the relationship between product complexities, external and internal knowledge and supply chain flexibility of Indonesian manufacturing firms. The complexity of manufacturing flexibility has made this concept difficult to comprehend yet delimit. To date, agreement on how to practice this concept has not yet been resolved. Employing the survey-based methodology, the SEM-PLS technique is used to test the hypothesized relationships. So, the current study has used SEM-PLS as a statistical tool to answer the research questions raised in this study and research objectives envisaged in the current study.

Results: The findings of the study have provided support to the theoretical foundation and proposed hypothesis of the current study. Current study will be helpful for policymakers and practitioners in understanding the issues related to supply chain risk, supply chain integration and supply chain agility. In the author's knowledge this is among very few pioneering studies on this issue.

References

  1. Bai, C. and J. Sarkis, 2018. Evaluating complex decision and predictive environments: The case of green supply chain flexibility. Technological and Economic Development of Economy, 24(4): 1630-1658.
  2. https://doi.org/10.3846/20294913.2018.1483977
  3. Basheer, M., M. Siam, A. Awn and S. Hassan, 2019. Exploring the role of tqm and supply chain practices for firm supply performance in the presence of information technology capabilities and supply chain technology adoption: A case of textile firms in pakistan. Uncertain Supply Chain Management, 7(2): 275-288. https://doi.org/10.5267/j.uscm.2018.9.001
  5. Blome, C. and T. Schoenherr, 2011. Supply chain risk management in financial crises-a multiple case-study approach. International journal of production economics, 134(1): 43-57. https://doi.org/10.1016/j.ijpe.2011.01.002
  6. Blome, C., T. Schoenherr and D. Rexhausen, 2013. Antecedents and enablers of supply chain agility and its effect on performance: A dynamic capabilities perspective. International Journal of Production Research, 51(4): 1295-1318.
  7. https://doi.org/10.1080/00207543.2012.728011
  8. Bozarth, C.C., D.P. Warsing, B.B. Flynn and E.J. Flynn, 2009. The impact of supply chain complexity on manufacturing plant performance. Journal of Operations Management, 27(1): 78-93.
  9. https://doi.org/10.1016/j.jom.2008.07.003
  10. Braunscheidel, M.J. and N.C. Suresh, 2018. Cultivating supply chain agility: Managerial actions derived from established antecedents. In: Supply chain risk management. Springer: pp: 289-309.
  11. https://doi.org/10.1007/978-981-10-4106-8_17
  12. Braunscheidel, M.J., N.C. Suresh and A.D. Boisnier, 2010. Investigating the impact of organizational culture on supply chain integration. Human Resource Management, 49(5): 883-911.https://doi.org/10.1002/hrm.20381
  13. Cabrera-Suárez, M.K., D.J. García-Almeida and P. De Saá-Pérez, 2018. A dynamic network model of the successor's knowledge construction from the resource-and knowledge-based view of the family firm. Family Business Review, 31(2):178-197.https://doi.org/10.1177/0894486518776867
  14. Chan, A.T., E.W. Ngai and K.K. Moon, 2017. The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry. European Journal of Operational Research, 259(2): 486-499.
  15. https://doi.org/10.1016/j.ejor.2016.11.006
  16. Claycomb, C., C. Dröge and R. Germain, 2005. Applied customer knowledge in a manufacturing environment: Flexibility for industrial firms. Industrial Marketing Management, 34(6): 629-640.
  17. https://doi.org/10.1016/j.indmarman.2004.10.008
  18. Closs, D.J., G.N. Nyaga and M.D. Voss, 2010. The differential impact of product complexity, inventory level, and configuration capacity on unit and order fill rate performance. Journal of Operations Management, 28(1): 47-57.
  19. https://doi.org/10.1016/j.jom.2009.04.003
  20. Craighead, C.W., J. Blackhurst, M.J. Rungtusanatham and R.B. Handfield, 2007. The severity of supply chain disruptions: Design characteristics and mitigation capabilities. Decision Sciences, 38(1): 131-156.
  21. https://doi.org/10.1111/j.1540-5915.2007.00151.x
  22. Craighead, C.W., G.T.M. Hult and D.J. Ketchen Jr, 2009. The effects of innovation-cost strategy, knowledge, and action in the supply chain on firm performance. Journal of Operations Management, 27(5): 405-421.
  23. https://doi.org/10.1016/j.jom.2009.01.002
  24. Fayezi, S., A. Zutshi and A. O'Loughlin, 2017. Understanding and development of supply chain agility and flexibility: A structured literature review. International Journal of Management Reviews, 19(4): 379-407.
  25. https://doi.org/10.1111/ijmr.12096
  26. Gimenez, C., T. van der Vaart and D. Pieter van Donk, 2012. Supply chain integration and performance: The moderating effect of supply complexity. International Journal of Operations & Production Management, 32(5): 583-610.https://doi.org/10.1108/01443571211226506
  27. Hafeez, M.H., M.F. Basheer, M. Rafique and S.H. Siddiqui, 2018. Exploring the links between tqm practices, business innovativeness and firm performance: An emerging market perspective. Pakistan Journal of Social Sciences (PJSS), 38(2): 485-500.
  28. Hair Jr, J.F., M. Sarstedt, L. Hopkins and V.G. Kuppelwieser, 2014. Partial least squares structural equation modeling (pls-sem) an emerging tool in business research. European Business Review, 26(2): 106-121.
  29. https://doi.org/10.1108/EBR-10-2013-0128
  30. Hanifah, M., H. Mohmadisa, S. Yazid, N. Nasir and N. Saiyidatina Balkhis, 2018. Developing low carbon schools model through students involvement in sustainability activities. International Journal of Asian Social Science,8(8):591-602.https://doi.org/10.5430/wje.v8n1p27
  31. Hassan, H.S. and T.M. Alanazi, 2018. Roles of islamic business ethics in the formation of internal organisational culture: A qualitative approach of muslims' smes in the uk. International Journal of Economics, Business and Management Studies, 5(1):16-30.https://doi.org/10.20448/802.51.16.30
  32. Hassan, I. and M.N.L. Azmi, 2018. A comparative analysis of visual agenda-setting in reporting islam. International Journal of Asian Social Science, 8(9): 622-630.
  33. Hassan, I., M.N. Latiff and Q. Yahaya, 2018. The survival of nigerian newspapers in the digital age of communication. International Journal of Asian Social Science, 8(9): 631-637.https://doi.org/10.18488/journal.1.2018.89.631.637
  34. Hassan, M.I.A. and P. Kommers, 2018. A review on the effect of social media on education in sudan. International Journal of Educational Technology and Learning, 3(1): 30-34.https://doi.org/10.20448/2003.31.30.34
  35. Horzum, T. and K. Izci, 2018. Preservice turkish teachers' views and perceived competence related to inclusive education. Journal of Education and e-Learning Research, 5(2): 131-143.
  36. https://doi.org/10.20448/journal.509.2018.52.131.143
  37. Hye, Q.M.A. and W.-Y. Lau, 2018. Does financial and trade liberalization drive private investment in pakistan? Asian Journal of Economics and Empirical Research, 5(1): 112-120.https://doi.org/10.20448/journal.501.2018.52.112.120
  38. Li, S., B. Ragu-Nathan, T. Ragu-Nathan and S.S. Rao, 2006. The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2): 107-124.
  39. https://doi.org/10.1016/j.omega.2004.08.002
  40. Lummus, R.R., R.J. Vokurka and L.K. Duclos, 2005. Delphi study on supply chain flexibility. International journal of production research, 43(13): 2687-2708.https://doi.org/10.1080/00207540500056102
  41. Malhotra, M.K. and A.W. Mackelprang, 2012. Are internal manufacturing and external supply chain flexibilities complementary capabilities? Journal of Operations Management, 30(3): 180-200.
  42. https://doi.org/10.1016/j.jom.2012.01.004
  43. Paulin, D. and K. Suneson, 2015. Knowledge transfer, knowledge sharing and knowledge barriers-three blurry terms in km. Leading Issues in Knowledge Management, 2(2): 73.
  44. Sarala, R.M., P. Junni, C.L. Cooper and S.Y. Tarba, 2016. A sociocultural perspective on knowledge transfer in mergers and acquisitions. Journal of Management, 42(5): 1230-1249.https://doi.org/10.1177/0149206314530167
  45. Sarstedt, M., C.M. Ringle, D. Smith, R. Reams and J.F. Hair Jr, 2014. Partial least squares structural equation modeling (pls-sem): A useful tool for family business researchers. Journal of Family Business Strategy,5(1):105-115.https://doi.org/10.1016/j.jfbs.2014.01.002
  46. Schoenherr, T., 2010. Outsourcing decisions in global supply chains: An exploratory multi-country survey. International Journal of Production Research, 48(2): 343-378.https://doi.org/10.1080/00207540903174908
  47. Sousa, R. and C.A. Voss, 2008. Contingency research in operations management practices. Journal of Operations Management, 26(6): 697-713.https://doi.org/10.1016/j.jom.2008.06.001
  48. Stevenson, M. and M. Spring, 2007. Flexibility from a supply chain perspective: Definition and review. International journal of operations & production management, 27(7): 685-713.https://doi.org/10.1108/01443570710756956
  49. Sumelius, J. and R. Sarala, 2008. Knowledge development in mnc subsidiaries: The influence of mnc internal and external knowledge and control mechanisms. Thunderbird International Business Review, 50(4):245-258.https://doi.org/10.1002/tie.20202
  50. Turner, N., J. Aitken and C. Bozarth, 2018. A framework for understanding managerial responses to supply chain complexity. International Journal of Operations & Production Management, 38(6): 1433-1466.https://doi.org/10.1108/IJOPM-01-2017-0062
  51. Vachon, S. and R.D. Klassen, 2002. An exploratory investigation of the effects of supply chain complexity on delivery performance. IEEE Transactions on engineering management, 49(3): 218-230.https://doi.org/10.1109/TEM.2002.803387
  52. Wang, Y., J. Song, J. Baker and Y. Kim, 2018. The role of service standardization capability in service innovation: Evidence from the knowledge-intensive service firms.
  53. Yu, K., B.N. Luo, X. Feng and J. Liu, 2018. Supply chain information integration, flexibility, and operational performance: An archival search and content analysis. The International Journal of Logistics Management, 29(1): 340-364.https://doi.org/10.1108/IJLM-08-2016-0185