Strategic sourcing for supply chain agility and firms' performance: A study of Indian manufacturing sector

Abstract

Purpose

The purpose of this paper is to explore the dimensions of strategic sourcing and determines its relationship with organisational supply chain agility and performance. It classifies manufacturing firms based on their level of supply chain agility and test the diffrences in firms' performnace across the clusters so obtained.

Design/methodology/approach

This research employes survey method and data is collected from 128 manufacturing companies in India. Valid and reliable measures of strategic sourcing, supply chain agility and organizational performance are developed. Factor structure and initial validity is determined and K‐Means cluster analysis is applied for clustering firms based on their level of supply agility. Multiple regression and ANOVA is used for hypotheses testing.

Findings

Strategic suplier partnership, sourcing flexibility, supplier evaluation and trust in supply chain members are the key dimensions of strategic sourcing. Result shows the significant effect of strategic sourcing and its diemnsions on supply chain agility and firms' performance.

Research limitations/implications

Data is collected from single node/respondent of supply chain and further research can be carried out by using mutiple node data of each supply chain to make the research more meaningful and generalisable.

Practical implications

Findings are useful to develop and measure the competitive capabilities of strategic sourcing and guide the organisations to enhance supply chain responsiveness and organisational performance.

Originality/value

The paper provides strategic diemnsions of sourcing and their measurement scales. Provide evidence regarding the impact of strategic sourcing on agility of supply chains and performnace.

Citation

Khan K, A. and Pillania, R.K. (2008), "Strategic sourcing for supply chain agility and firms' performance: A study of Indian manufacturing sector", Management Decision, Vol. 46 No. 10, pp. 1508-1530. https://doi.org/10.1108/00251740810920010