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IS THE SUPPLY CHAIN ORIENTATION IN AN AGILE SUPPLY CHAIN DETERMINING THE SUPPLY CHAIN PERFORMANCE?
Corresponding Author(s) : Thanaporn Sriyakul
Humanities & Social Sciences Reviews,
Vol. 7 No. 3 (2019): May
Abstract
Purpose: The prime objective of the current study is to investigate the relationship between agile supply chain agility, supply chain performance and the supply chain orientation in Indonesia SMEs. In addition to that the indirect relationship between and among the supply chain orientation, supply chain agility and supply chain performance is examined. Employing the survey-based methodology, the SEM-PLS technique is used to test the hypothesized relationships.
Methodology: 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.
Keywords
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- Abrahamsson, S., F. Bertoni, A. Mol and R.I. MartÃn, 2015. Living with omega-3: New materialism and enduring concerns. Environment and Planning D: Society and Space, 33(1): 4-19.https://doi.org/10.1068/d14086p DOI: https://doi.org/10.1068/d14086p
- 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 DOI: https://doi.org/10.5267/j.uscm.2018.9.001
- Brusset, X. and C. Teller, 2017. Supply chain capabilities, risks, and resilience. International Journal of Production Economics, 184: 59-68.https://doi.org/10.1016/j.ijpe.2016.09.008 DOI: https://doi.org/10.1016/j.ijpe.2016.09.008
- Bustinza, O., F. Vendrell Herrero, E. Gomes, E.M. Lafuente González, M. Opazo-Basáez, R. Rabetino and Y. Vaillant, 2018. Product-service innovation and performance: Unveiling the complexities. International journal of business environment, 10(2): 95-11.https://doi.org/10.1504/IJBE.2018.095819 DOI: https://doi.org/10.1504/IJBE.2018.095819
- 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.https://doi.org/10.1016/j.ejor.2016.11.006 DOI: https://doi.org/10.1016/j.ejor.2016.11.006
- Colicchia, C. and F. Strozzi, 2012. Supply chain risk management: A new methodology for a systematic literature review. Supply Chain Management: An International Journal, 17(4): 403-418.https://doi.org/10.1108/13598541211246558 DOI: https://doi.org/10.1108/13598541211246558
- Diabat, A., K. Govindan and V.V. Panicker, 2012. Supply chain risk management and its mitigation in a food industry. International Journal of Production Research, 50(11): 3039-3050.https://doi.org/10.1080/00207543.2011.588619 DOI: https://doi.org/10.1080/00207543.2011.588619
- Dubey, R., N. Altay, A. Gunasekaran, C. Blome, T. Papadopoulos and S.J. Childe, 2018. Supply chain agility, adaptability and alignment: Empirical evidence from the indian auto components industry. International Journal of Operations & Production Management, 38(1): 129-148.https://doi.org/10.1108/IJOPM-04-2016-0173 DOI: https://doi.org/10.1108/IJOPM-04-2016-0173
- Fan, H., G. Li, H. Sun and T. Cheng, 2017. An information processing perspective on supply chain risk management: Antecedents, mechanism, and consequences. International Journal of Production Economics, 185: 63-75.https://doi.org/10.1016/j.ijpe.2016.11.015 DOI: https://doi.org/10.1016/j.ijpe.2016.11.015
- Flynn, B.B., B. Huo and X. Zhao, 2010. The impact of supply chain integration on performance: A contingency and configuration approach. Journal of operations management, 28(1): 58-71.https://doi.org/10.1016/j.jom.2009.06.001 DOI: https://doi.org/10.1016/j.jom.2009.06.001
- Gligor, D.M., M.C. Holcomb and J. Feizabadi, 2016. An exploration of the strategic antecedents of firm supply chain agility: The role of a firm's orientations. International Journal of Production Economics, 179: 24-34.https://doi.org/10.1016/j.ijpe.2016.05.008 DOI: https://doi.org/10.1016/j.ijpe.2016.05.008
- 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.
- Hair, J.F., C.M. Ringle and M. Sarstedt, 2011. Pls-sem: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2): 139-152.https://doi.org/10.2753/MTP1069-6679190202 DOI: https://doi.org/10.2753/MTP1069-6679190202
- Handfield, R.B., P.D. Cousins, B. Lawson and K.J. Petersen, 2015. How can supply management really improve performance? A knowledgeâ€based model of alignment capabilities. Journal of Supply Chain Management, 51(3): 3-17.https://doi.org/10.1111/jscm.12066 DOI: https://doi.org/10.1111/jscm.12066
- Helfat, C.E., S. Finkelstein, W. Mitchell, M. Peteraf, H. Singh, D. Teece and S.G. Winter, 2009. Dynamic capabilities: Understanding strategic change in organizations. John Wiley & Sons.
- Henseler, J., C.M. Ringle and R.R. Sinkovics, 2009. The use of partial least squares path modeling in international marketing. In: New challenges to international marketing. Emerald Group Publishing Limited: pp: 277-319.https://doi.org/10.1108/S1474-7979(2009)0000020014 DOI: https://doi.org/10.1108/S1474-7979(2009)0000020014
- Huo, B., Y. Qi, Z. Wang and X. Zhao, 2014. The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management: An International Journal, 19(4): 369-384.https://doi.org/10.1108/SCM-03-2013-0096 DOI: https://doi.org/10.1108/SCM-03-2013-0096
- Jajja, M.S.S., K.A. Chatha and S. Farooq, 2018. Impact of supply chain risk on agility performance: the Mediating role of supply chain integration. International Journal of Production Economics, 205: 118-138.https://doi.org/10.1016/j.ijpe.2018.08.032 DOI: https://doi.org/10.1016/j.ijpe.2018.08.032
- Jajja, M.S.S., V.R. Kannan, S.A. Brah and S.Z. Hassan, 2017. Linkages between firm innovation strategy, suppliers, product innovation, and business performance: Insights from resource dependence theory. International Journal of Operations & Production Management, 37(8): 1054-1075. https://doi.org/10.1108/IJOPM-09-2014-0424 DOI: https://doi.org/10.1108/IJOPM-09-2014-0424
- Kamalahmadi, M. and M.M. Parast, 2016. A review of the literature on the principles of enterprise and supply chain resilience: Major findings and directions for future research. International Journal of Production Economics, 171: 116-133.https://doi.org/10.1016/j.ijpe.2015.10.023 DOI: https://doi.org/10.1016/j.ijpe.2015.10.023
- Khan, H. and J.D. Wisner, 2019. Supply chain integration, learning, and agility: Effects on performance. Journal of Operations and Supply Chain Management, 12(1): 14. https://doi.org/10.31387/oscm0360218 DOI: https://doi.org/10.31387/oscm0360218
- Lavastre, O., A. Gunasekaran and A. Spalanzani, 2014. Effect of firm characteristics, supplier relationships and techniques used on supply chain risk management (scrm): An empirical investigation on french industrial firms. International Journal of Production Research, 52(11): 3381-3403.https://doi.org/10.1080/00207543.2013.878057 DOI: https://doi.org/10.1080/00207543.2013.878057
- Lin, Y. and L.-Y. Wu, 2014. Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of business research, 67(3): 407-413.https://doi.org/10.1016/j.jbusres.2012.12.019 DOI: https://doi.org/10.1016/j.jbusres.2012.12.019
- Madhusudhanan, S., 2018. Gender responsive budgeting: A lesson learned and way forward. International Journal of Applied Economics, Finance and Accounting, 2(1): 27-29.https://doi.org/10.33094/8.2017.2018.21.27.29 DOI: https://doi.org/10.33094/8.2017.2018.21.27.29
- Manesh, M.H., J.S.K. Singh and I.A.B. Hussain, 2018. Transformational leadership and contextual performance: A quantitative study among nursing staff in kuala lumpur. International Journal of Management and Sustainability, 7(2): 101-112.https://doi.org/10.18488/journal.11.2018.72.101.112 DOI: https://doi.org/10.18488/journal.11.2018.72.101.112
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- Mbunda-Nekang, F.M., 2018. Preventing conflict and ensuring national peace through folklore: Option for cameroon. International Journal of English Language and Literature Studies, 7(2): 22-31.https://doi.org/10.18488/journal.23.2018.72.22.31 DOI: https://doi.org/10.18488/journal.23.2018.72.22.31
- Michael, O., O. Justina and D. Olabode, 2018. Child labour and protection: An exploration of vulnerable children in lagos state, nigeria. Humanities, 6(4): 171-179.https://doi.org/10.18488/journal.73.2018.64.171.179 DOI: https://doi.org/10.18488/journal.73.2018.64.171.179
- Mikail, A. and Z.A. Zainol, 2018. Conservation of biodiversity in sub sahara africa: Prospecting for genetic resources and traditional knowledge regulation in ethiopia. International Journal of Asian Social Science, 8(9): 725-734.https://doi.org/10.18488/journal.1.2018.88.560.568 DOI: https://doi.org/10.18488/journal.1.2018.88.560.568
- Mokgari, M.T. and O. Pwaka, 2018. An evaluation of the effectiveness of oversight committees: A case of city of johannesburg, section 79 committees. International Journal of Public Policy and Administration Research, 5(2): 48-67.https://doi.org/10.18488/journal.74.2018.52.48.67 DOI: https://doi.org/10.18488/journal.74.2018.52.48.67
- Park, K., H. Min and S. Min, 2016. Inter-relationship among risk taking propensity, supply chain security practices, and supply chain disruption occurrence. Journal of Purchasing and Supply Management, 22(2): 120-130.https://doi.org/10.1016/j.pursup.2015.12.001 DOI: https://doi.org/10.1016/j.pursup.2015.12.001
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- Qazi, A., A. Dickson, J. Quigley and B. Gaudenzi, 2018. Supply chain risk network management: A Bayesian belief network and expected utility based approach for managing supply chain risks. International Journal of Production Economics, 196: 24-42.https://doi.org/10.1016/j.ijpe.2017.11.008 DOI: https://doi.org/10.1016/j.ijpe.2017.11.008
- Tang, O. and S.N. Musa, 2011. Identifying risk issues and research advancements in supply chain risk management. International journal of production economics, 133(1): 25-34.https://doi.org/10.1016/j.ijpe.2010.06.013 DOI: https://doi.org/10.1016/j.ijpe.2010.06.013
- Tarafdar, M. and S. Qrunfleh, 2017. Agile supply chain strategy and supply chain performance: Complementary roles of supply chain practices and information systems capability for agility. International Journal of Production Research, 55(4): 925-938.https://doi.org/10.1080/00207543.2016.1203079 DOI: https://doi.org/10.1080/00207543.2016.1203079
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- Vanpoucke, E., A. Vereecke and M. Wetzels, 2014. Developing supplier integration capabilities for sustainable competitive advantage: A dynamic capabilities approach. Journal of operations management, 32(7-8): 446-461.https://doi.org/10.1016/j.jom.2014.09.004 DOI: https://doi.org/10.1016/j.jom.2014.09.004
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References
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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 DOI: https://doi.org/10.5267/j.uscm.2018.9.001
Brusset, X. and C. Teller, 2017. Supply chain capabilities, risks, and resilience. International Journal of Production Economics, 184: 59-68.https://doi.org/10.1016/j.ijpe.2016.09.008 DOI: https://doi.org/10.1016/j.ijpe.2016.09.008
Bustinza, O., F. Vendrell Herrero, E. Gomes, E.M. Lafuente González, M. Opazo-Basáez, R. Rabetino and Y. Vaillant, 2018. Product-service innovation and performance: Unveiling the complexities. International journal of business environment, 10(2): 95-11.https://doi.org/10.1504/IJBE.2018.095819 DOI: https://doi.org/10.1504/IJBE.2018.095819
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.https://doi.org/10.1016/j.ejor.2016.11.006 DOI: https://doi.org/10.1016/j.ejor.2016.11.006
Colicchia, C. and F. Strozzi, 2012. Supply chain risk management: A new methodology for a systematic literature review. Supply Chain Management: An International Journal, 17(4): 403-418.https://doi.org/10.1108/13598541211246558 DOI: https://doi.org/10.1108/13598541211246558
Diabat, A., K. Govindan and V.V. Panicker, 2012. Supply chain risk management and its mitigation in a food industry. International Journal of Production Research, 50(11): 3039-3050.https://doi.org/10.1080/00207543.2011.588619 DOI: https://doi.org/10.1080/00207543.2011.588619
Dubey, R., N. Altay, A. Gunasekaran, C. Blome, T. Papadopoulos and S.J. Childe, 2018. Supply chain agility, adaptability and alignment: Empirical evidence from the indian auto components industry. International Journal of Operations & Production Management, 38(1): 129-148.https://doi.org/10.1108/IJOPM-04-2016-0173 DOI: https://doi.org/10.1108/IJOPM-04-2016-0173
Fan, H., G. Li, H. Sun and T. Cheng, 2017. An information processing perspective on supply chain risk management: Antecedents, mechanism, and consequences. International Journal of Production Economics, 185: 63-75.https://doi.org/10.1016/j.ijpe.2016.11.015 DOI: https://doi.org/10.1016/j.ijpe.2016.11.015
Flynn, B.B., B. Huo and X. Zhao, 2010. The impact of supply chain integration on performance: A contingency and configuration approach. Journal of operations management, 28(1): 58-71.https://doi.org/10.1016/j.jom.2009.06.001 DOI: https://doi.org/10.1016/j.jom.2009.06.001
Gligor, D.M., M.C. Holcomb and J. Feizabadi, 2016. An exploration of the strategic antecedents of firm supply chain agility: The role of a firm's orientations. International Journal of Production Economics, 179: 24-34.https://doi.org/10.1016/j.ijpe.2016.05.008 DOI: https://doi.org/10.1016/j.ijpe.2016.05.008
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.
Hair, J.F., C.M. Ringle and M. Sarstedt, 2011. Pls-sem: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2): 139-152.https://doi.org/10.2753/MTP1069-6679190202 DOI: https://doi.org/10.2753/MTP1069-6679190202
Handfield, R.B., P.D. Cousins, B. Lawson and K.J. Petersen, 2015. How can supply management really improve performance? A knowledgeâ€based model of alignment capabilities. Journal of Supply Chain Management, 51(3): 3-17.https://doi.org/10.1111/jscm.12066 DOI: https://doi.org/10.1111/jscm.12066
Helfat, C.E., S. Finkelstein, W. Mitchell, M. Peteraf, H. Singh, D. Teece and S.G. Winter, 2009. Dynamic capabilities: Understanding strategic change in organizations. John Wiley & Sons.
Henseler, J., C.M. Ringle and R.R. Sinkovics, 2009. The use of partial least squares path modeling in international marketing. In: New challenges to international marketing. Emerald Group Publishing Limited: pp: 277-319.https://doi.org/10.1108/S1474-7979(2009)0000020014 DOI: https://doi.org/10.1108/S1474-7979(2009)0000020014
Huo, B., Y. Qi, Z. Wang and X. Zhao, 2014. The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management: An International Journal, 19(4): 369-384.https://doi.org/10.1108/SCM-03-2013-0096 DOI: https://doi.org/10.1108/SCM-03-2013-0096
Jajja, M.S.S., K.A. Chatha and S. Farooq, 2018. Impact of supply chain risk on agility performance: the Mediating role of supply chain integration. International Journal of Production Economics, 205: 118-138.https://doi.org/10.1016/j.ijpe.2018.08.032 DOI: https://doi.org/10.1016/j.ijpe.2018.08.032
Jajja, M.S.S., V.R. Kannan, S.A. Brah and S.Z. Hassan, 2017. Linkages between firm innovation strategy, suppliers, product innovation, and business performance: Insights from resource dependence theory. International Journal of Operations & Production Management, 37(8): 1054-1075. https://doi.org/10.1108/IJOPM-09-2014-0424 DOI: https://doi.org/10.1108/IJOPM-09-2014-0424
Kamalahmadi, M. and M.M. Parast, 2016. A review of the literature on the principles of enterprise and supply chain resilience: Major findings and directions for future research. International Journal of Production Economics, 171: 116-133.https://doi.org/10.1016/j.ijpe.2015.10.023 DOI: https://doi.org/10.1016/j.ijpe.2015.10.023
Khan, H. and J.D. Wisner, 2019. Supply chain integration, learning, and agility: Effects on performance. Journal of Operations and Supply Chain Management, 12(1): 14. https://doi.org/10.31387/oscm0360218 DOI: https://doi.org/10.31387/oscm0360218
Lavastre, O., A. Gunasekaran and A. Spalanzani, 2014. Effect of firm characteristics, supplier relationships and techniques used on supply chain risk management (scrm): An empirical investigation on french industrial firms. International Journal of Production Research, 52(11): 3381-3403.https://doi.org/10.1080/00207543.2013.878057 DOI: https://doi.org/10.1080/00207543.2013.878057
Lin, Y. and L.-Y. Wu, 2014. Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of business research, 67(3): 407-413.https://doi.org/10.1016/j.jbusres.2012.12.019 DOI: https://doi.org/10.1016/j.jbusres.2012.12.019
Madhusudhanan, S., 2018. Gender responsive budgeting: A lesson learned and way forward. International Journal of Applied Economics, Finance and Accounting, 2(1): 27-29.https://doi.org/10.33094/8.2017.2018.21.27.29 DOI: https://doi.org/10.33094/8.2017.2018.21.27.29
Manesh, M.H., J.S.K. Singh and I.A.B. Hussain, 2018. Transformational leadership and contextual performance: A quantitative study among nursing staff in kuala lumpur. International Journal of Management and Sustainability, 7(2): 101-112.https://doi.org/10.18488/journal.11.2018.72.101.112 DOI: https://doi.org/10.18488/journal.11.2018.72.101.112
Mbogela, C.S., 2018. Determinants of africa-bric countries bilateral trade flows. Economy, 5(1): 40-53.https://doi.org/10.20448/journal.502.2018.51.40.53 DOI: https://doi.org/10.20448/journal.502.2018.51.40.53
Mbunda-Nekang, F.M., 2018. Preventing conflict and ensuring national peace through folklore: Option for cameroon. International Journal of English Language and Literature Studies, 7(2): 22-31.https://doi.org/10.18488/journal.23.2018.72.22.31 DOI: https://doi.org/10.18488/journal.23.2018.72.22.31
Michael, O., O. Justina and D. Olabode, 2018. Child labour and protection: An exploration of vulnerable children in lagos state, nigeria. Humanities, 6(4): 171-179.https://doi.org/10.18488/journal.73.2018.64.171.179 DOI: https://doi.org/10.18488/journal.73.2018.64.171.179
Mikail, A. and Z.A. Zainol, 2018. Conservation of biodiversity in sub sahara africa: Prospecting for genetic resources and traditional knowledge regulation in ethiopia. International Journal of Asian Social Science, 8(9): 725-734.https://doi.org/10.18488/journal.1.2018.88.560.568 DOI: https://doi.org/10.18488/journal.1.2018.88.560.568
Mokgari, M.T. and O. Pwaka, 2018. An evaluation of the effectiveness of oversight committees: A case of city of johannesburg, section 79 committees. International Journal of Public Policy and Administration Research, 5(2): 48-67.https://doi.org/10.18488/journal.74.2018.52.48.67 DOI: https://doi.org/10.18488/journal.74.2018.52.48.67
Park, K., H. Min and S. Min, 2016. Inter-relationship among risk taking propensity, supply chain security practices, and supply chain disruption occurrence. Journal of Purchasing and Supply Management, 22(2): 120-130.https://doi.org/10.1016/j.pursup.2015.12.001 DOI: https://doi.org/10.1016/j.pursup.2015.12.001
Pettit, T.J., K.L. Croxton and J. Fiksel, 2013. Ensuring supply chain resilience: Development and implementation of an assessment tool. Journal of Business Logistics, 34(1): 46-76.https://doi.org/10.1111/jbl.12009 DOI: https://doi.org/10.1111/jbl.12009
Qazi, A., A. Dickson, J. Quigley and B. Gaudenzi, 2018. Supply chain risk network management: A Bayesian belief network and expected utility based approach for managing supply chain risks. International Journal of Production Economics, 196: 24-42.https://doi.org/10.1016/j.ijpe.2017.11.008 DOI: https://doi.org/10.1016/j.ijpe.2017.11.008
Tang, O. and S.N. Musa, 2011. Identifying risk issues and research advancements in supply chain risk management. International journal of production economics, 133(1): 25-34.https://doi.org/10.1016/j.ijpe.2010.06.013 DOI: https://doi.org/10.1016/j.ijpe.2010.06.013
Tarafdar, M. and S. Qrunfleh, 2017. Agile supply chain strategy and supply chain performance: Complementary roles of supply chain practices and information systems capability for agility. International Journal of Production Research, 55(4): 925-938.https://doi.org/10.1080/00207543.2016.1203079 DOI: https://doi.org/10.1080/00207543.2016.1203079
Thun, J.-H. and D. Hoenig, 2011. An empirical analysis of supply chain risk management in the german automotive industry. International journal of production economics, 131(1): 242-249.https://doi.org/10.1016/j.ijpe.2009.10.010 DOI: https://doi.org/10.1016/j.ijpe.2009.10.010
Tummala, R. and T. Schoenherr, 2011. Assessing and managing risks using the supply chain risk management process (scrmp). Supply Chain Management: An International Journal, 16(6): 474-483.https://doi.org/10.1108/13598541111171165 DOI: https://doi.org/10.1108/13598541111171165
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