Understanding the influence of lean and agile strategies on creating firms’ supply chain risk management capabilities
ISSN: 1059-5422
Article publication date: 29 June 2020
Issue publication date: 22 July 2021
Abstract
Purpose
Lean and agile strategies are two basic supply chain paradigms that strategist decouples based on their internal and external environment. This study aims to identify the influence of market orientation (MO) and quality management (QM) deployment on the supply chain strategies. Furthermore, this study also seeks empirical evidence of the impact of these core strategies on creating risk management capabilities.
Design/methodology/approach
Quantitative research technique is deployed to explain the phenomenon. The data was gathered through a structured scale questionnaire from supply chain professionals working at different manufacturing firms. Valid data of 134 respondents is then analyzed through partial least squares structural equation modeling for further empirical understanding.
Findings
The outcome of the research indicates that MO capability; as an external drive is a key to make an operational strategy. QM as an internal control is more prone to formulating a lean strategy (LS). Another important finding is that LS does not complement risk management capabilities especially in an uncertain market condition.
Practical implications
The study suggested concrete implications for risk management through the right mix of lean and agile supply chain strategies. There are some good insights for the supply chain policy-makers working in a developing country.
Originality/value
This study will provide empirical evidence for managing supply chain risk through an effective strategy making.
Keywords
Acknowledgements
Addendum to Ahmed & Rashdi (2020): Since the publication of our article ‘Understanding the influence of lean and agile strategies on creating firms’ supply chain risk management capabilities’ (Ahmed & Rashdi, 2020), the editors of Competitiveness Review have drawn our attention to its similarities with our earlier work (Ahmed & Huma, 2018). We wish to clarify that the current article, ‘Understanding the influence of lean and agile strategies on creating firms’ supply chain risk management capabilities’, builds significantly on the earlier paper while testing a similar set of research questions. We also wish to confirm that the analysis published here draws on new raw data and reflects further conceptual thinking.
References
Ahmed, Waqar & Huma, S. (2018), “Impact of lean and agile strategies on supply chain risk management”, Total Quality Management & Business Excellence, 32: 1-2, pp. 33-56, https://doi.org/10.1080/14783363.2018.1529558.
Ahmed, W. and Rashdi, M.Z. (2020), “Understanding the influence of lean and agile strategies on creating firms’ supply chain risk management capabilities”, Competitiveness Review, Vol. 31 No. 5, pp. 810-831, https://doi.org/10.1108/CR-03-2020-0040.
Citation
Ahmed, W. and Rashdi, M.Z. (2021), "Understanding the influence of lean and agile strategies on creating firms’ supply chain risk management capabilities", Competitiveness Review, Vol. 31 No. 5, pp. 810-831. https://doi.org/10.1108/CR-03-2020-0040
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited