Supply management, supply flexibility and performance outcomes: An empirical investigation of manufacturing firms

Abstract

Purpose: Increasingly, the global market environment is becoming more turbulent, complex and uncertain. Literature has explored the importance of supply management and its direct impact on performance. However, the nature of strategic supply management and its impact on supply flexibility needs further clarification in the context of the use of supplier resources and supplier network coordination. This research presents a model of supply management, supply flexibility and supply chain performance. In this study, we examine the relationships between supply management and supply flexibility, and extend the concept of supply flexibility in terms of supplier flexibility and supply network flexibility on relevant supply chain performance measures.

Design/Methodology/ Approach: Data for the study were collected from 201 manufacturing firms, and the measurement scales of supply flexibility were tested and validated using structural equation modeling.

Findings: The results indicate strong, positive and direct relationships between supply management practices and supply flexibility, and between supply flexibility and supply chain performance.

Contribution to Policy and Practice: The study recommends the management of manufacturing firms to recognize the interdependence of different components of the supply chain, and the need to focus on improving the entire system, rather than just individual components and to invest in practices that enhance supply flexibility, such as demand forecasting, risk management, and supplier relationships.