The effect of supply chain agility and lean practices on operational performance: a resource-based view and dynamic capabilities perspective

Abstract

Purpose

In today's global economy, developing supply chain agility (SCA) and lean practices (LP) as resource-based view and dynamic capabilities are essential for firms to sustain their competitive advantage (CA) and enhance their operational performance (OP). The purpose of this paper is to develop and empirically test a framework to investigate how CA is achieved through SCA and LP and how these, in turn, can enhance a firm's OP.

Design/methodology/approach

For data collection, the authors adopted the survey method using self-administered questionnaires. Two-source survey data were collected in two rounds (separated by a two-month lag time) from supply chain managers, operational managers and general managers. The purpose of collecting data in two rounds was to reduce common-method bias. Likert scale (1–5) was used in the questionnaire. Smart PLS 3 and SPSS 23 were used for the data analysis purpose.

Findings

SCA was found to directly and positively affect OP. LP also positively affected OP. In addition, CA fully mediated the relationship between SCA, LP and OP.

Practical implications

This study encourages the managers of manufacturing firms to adapt LP and their supply chains (SCs) to become agile and leverage the advantages of their implementation to improve their OP and succeed in the market.

Originality/value

This study is one of the first to investigate the effect of SCA and LP on OP. Furthermore, the first study examines CA's mediating impact on the relationship between SCA, LP and OP.

Citation

Manzoor, U., Baig, S.A., Hashim, M., Sami, A., Rehman, H.-U. and Sajjad, I. (2022), "The effect of supply chain agility and lean practices on operational performance: a resource-based view and dynamic capabilities perspective", The TQM Journal, Vol. 34 No. 5, pp. 1273-1297. https://doi.org/10.1108/TQM-01-2021-0006