TY - JOUR
T1 - Impact of supply chain risk on agility performance
T2 - Mediating role of supply chain integration
AU - Jajja, Muhammad Shakeel Sadiq
AU - Chatha, Kamran Ali
AU - Farooq, Sami
PY - 2018/11/1
Y1 - 2018/11/1
N2 - Supply chain literature highlights the importance of agility performance for firms facing supply chain risk. However, the literature explaining the ways in which companies facing supply chain risk organize the key elements of their supply chain to enhance agility performance provides space for more research. We use dynamic capabilities view to explain why supply chain risk may motivate companies to integrate their supply chain to enhance agility performance. Structural equation modeling is used to test the hypotheses using data of 770 manufacturing companies obtained from the sixth version of International Manufacturing Strategy Survey. Empirical examination provides evidence that (a) a firm's supply chain risk has positive association with supplier and customer integration, (b) supplier, internal, and customer integration have positive impact on agility performance, though the impact of internal integration is weak, (c) supplier and customer integration mediate the relationship between a firm's supply chain risk and agility performance, and (d) supplier and customer integration mediate the relationship between internal integration and agility performance. The findings of this paper suggest that companies cope with supply chain risk by using integrative practices with suppliers and customers that enhance agility performance. Internal integration is the foundation for building up supplier and customer integration for agility performance. Future research may examine these relationships over time and in different industries and contexts.
AB - Supply chain literature highlights the importance of agility performance for firms facing supply chain risk. However, the literature explaining the ways in which companies facing supply chain risk organize the key elements of their supply chain to enhance agility performance provides space for more research. We use dynamic capabilities view to explain why supply chain risk may motivate companies to integrate their supply chain to enhance agility performance. Structural equation modeling is used to test the hypotheses using data of 770 manufacturing companies obtained from the sixth version of International Manufacturing Strategy Survey. Empirical examination provides evidence that (a) a firm's supply chain risk has positive association with supplier and customer integration, (b) supplier, internal, and customer integration have positive impact on agility performance, though the impact of internal integration is weak, (c) supplier and customer integration mediate the relationship between a firm's supply chain risk and agility performance, and (d) supplier and customer integration mediate the relationship between internal integration and agility performance. The findings of this paper suggest that companies cope with supply chain risk by using integrative practices with suppliers and customers that enhance agility performance. Internal integration is the foundation for building up supplier and customer integration for agility performance. Future research may examine these relationships over time and in different industries and contexts.
KW - Agility performance
KW - Empirical research
KW - International manufacturing strategy survey
KW - Supply chain integration
KW - Supply chain risk
UR - http://www.scopus.com/inward/record.url?scp=85054836646&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2018.08.032
DO - 10.1016/j.ijpe.2018.08.032
M3 - Journal article
AN - SCOPUS:85054836646
SN - 0925-5273
VL - 205
SP - 118
EP - 138
JO - International Journal of Production Economics
JF - International Journal of Production Economics
ER -