Strategic sourcing for supply chain agility and firms' performance

Arif Khan K · Rajesh K. Pillania

108 citations0/0 files storedManagement Decision

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Quality and Supply Management Outsourcing and Supply Chain Management Collaboration in agile enterprises

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.

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References

1997Dynamic capabilities and strategic management 1979A Paradigm for Developing Better Measures of Marketing Constructs 1990The Competitive Advantage of Nations 1998Social Capital, Intellectual Capital, and the Organizational Advantage 1982Mail and Telephone Surveys: The Total Design Method.1985Survey Research Methods.1990Competitive Advantage of Nations 2000Supply Chain Management: Strategy, Planning and Operations

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