Factors Affecting Supply Chain Agility

Document Type : Research Paper

Authors

Abstract

In a constantly changing global competitive environment, an organization’s supply chain agility directly impacts its ability to produce, and deliver innovative products to their customers in a timely and cost effective manner. While the beneficial impact of supply chain agility is generally acknowledged, very little research exists to date addressing how an organization can achieve supply chain agility. This study first presents a framework of a process based organization’s supply chain agility, and then establishes the key factors that determine the agility attributes of the four critical processes of the supply chain—new product development, sourcing, manufacturing, and delivery. In developing model SCOR model and other models are used. Using empirical data, we develop agility scales related to our supply chain agility model, and then test the model. In this process 4 main supply chain processes transform to 3 processes (new product development, delivery management and sourcing & manufacturing management). Using structural equation modeling (SEM) we show that supply chain agility of a firm is directly and positively impacted by the degree of new product development and sourcing & manufacturing management supply chain process agility; while it is indirectly impacted by the delivery management process. The finding of this paper can be used as an idea for designing organization and efforts for getting theoretical and empirical feedback.

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