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The mediator effect of supply chain agility on firm performance

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  1. Abstract
  2. Introduction
  3. A conceptual framework of supply chain agility
    1. Dimensions of supply chain flexibility
    2. Supply chain agility
  4. Data collection and sample characteristics
  5. Non-response bias and common method variance
  6. Statistical analysis
    1. Analysis of the measurement models
    2. Analysis of the direct effect supply chain agility structural equation model
    3. Analysis of the second-order supply chain agility structural model
  7. Discussion and conclusion
  8. References

While it is generally acknowledged that an organization's supply chain agility is crucial to its competitive advantage, the impact of agility on firm performance has not been adequately researched. This research uses structural equation modeling to examine the effect of supply chain agility on firm performance. This study first presents a supply chain agility framework based on the key elements that determine the flexibility attributes of a firm's critical supply chain processes related to sourcing, manufacturing, and logistics. Next, the study describes the relationships between the elements of flexibility and supply chain agility. A set of survey data is used to examine the relationships between the constructs in the proposed research model. Survey results show that a firm's supply chain agility can be measured by two second-order constructs consisting of its information technology capability and supply chain flexibility. Additionally, the results show that supply chain agility affects firm performance through its competency in responding to the changing market environment.

[...] (2006a), The antecedents of supply chain agility of a firm: Scale development and model testing. Journal of Operations Management, 170-188. Swafford, P.M., Soumen, G., and Murthy, N.N. (2006b), A framework for assessing value chain agility. International Journal of Operations & Production Management, 118-140. Zhang, Q., Vonderembrse, M.A. and Lim, J., 2002a. Value chain flexibility: a dichotomy of competence and capability. International Journal of Production Research 561-583. Zhang, Q., Vonderembse, M. A. and Lim, J., 2002b. Manufacturing flexibility: defining and analyzing relationships among competence, capability, and customer satisfaction. [...]

[...] Table Fit Statistics - Measurement Models and CFA GOODNESS-OF-FIT STATISTICS ?2 Degrees of freedom ?2/df ?2 p-value RMSEA p-value (RMSEA<.05) ECVI Saturated ECVI Independence ECVI Independence AIC Model AIC Saturated AIC Independence CAIC Model CAIC Saturated CAIC NFI NNFI CFI IFI RFI RMR Standardized RMR GFI AGFI ACCEPTABLE LEVEL IntrCap (?1) IntgCap (?2) MEASUREMENT MODELS RGE AdapC AdapT (?3) (?4) (?5) SCA (?6) Perf (?7) CFA 3.0 Non significant 0.05 0.50 Compares to alternative models Compares to alternative models Compares to alternative models 0.90 0.90 0.90 Value close to 1 Value close to 1 0.05 0.90 Analysis of the Direct Effect Supply Chain Agility Structural Equation Model Based on the results of the measurement models, the direct effect supply chain agility structural model was analyzed using the maximum likelihood estimation method. [...]

[...] IntrCap ?1 IntgCap ?2 RGE ?3 AdapC ?4 AdapT ?5 H1a ?6,1 H1b ?6,2 H1d ?6,4 H1c ?6,3 SCA ?6 H2 ?7,6 PERF ?7 H1e ?6,5 Figure Proposed Direct Effect Supply Chain Agility Structural Equation Model While there is no general consensus on the dimensions to measure flexibility, we adopt Slack's definition that flexibility is the range that is feasible for a firm to adjust its processes to meet changing demand, the cost incurred to make the adjustment, and the time for the change. [...]

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