The purpose of this paper is to examine the mediating role of strategic supplier partnership and moderating role of information sharing (IS), in the relationship between lean…
Abstract
Purpose
The purpose of this paper is to examine the mediating role of strategic supplier partnership and moderating role of information sharing (IS), in the relationship between lean manufacturing and firms’ financial performance (FP).
Design/methodology/approach
Utilizing the contingency approach, this study develops a research model to validate the proposition that a proper integration of supply chain (SC) practices enhances the financial performance of the firm. The study uses data from one hundred and fifty-seven manufacturing firms. The results are generated on structural equation modeling (SEM) using AMOS software.
Findings
The study finds that strategic supplier partnership partially mediates the relationship between lean manufacturing and FP, whereas, empirically, it could not demonstrate that IS significantly moderates the relationship between lean manufacturing and FP.
Practical implications
The paper theoretically develops logic for and empirically shows that strategic supplier partnership is an appropriate practice for mediating the impact of lean manufacturing on FP.
Originality/value
This strategic supply chain integration contributes to theory and demonstrates that SC practices’ correct synchronization and orchestration may realize superior FP. In addition, this research provides a sustainable strategic SC model that creates value and provides a competitive advantage for firms in the long term.
Details
Keywords
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Significant emphasis on key lean manufacturing activities can help companies improve their financial performance. An increased impact is attainable if lean manufacturing is coordinated with other supply chain activities that include information sharing and, in particular, strategic supplier partnership to strengthen the effectiveness of collaborative efforts.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.