Supply Chain Performance Based on the Lean-Agile Operations and Supplier-Firm Partnership: An Empirical Study on the Garment Industry in Indonesia

Abstract

The purpose of this study is to explore how lean–agile operations and supplier–firm partnership can improve garment small and medium enterprise (SME) supply chain performance. This study is based on cross-sectional survey research that provides longitudinal evidence to show how lean–agile operations and partnership strategy influence supply chain and garment SME performance. To clarify the relationships among these constructs, structural equation model (SEM) is conducted to examine the model fit and the five hypotheses. The result shows that agile supply chain and partnership strategy are critical for garment SMEs because these strategies influence their supply chain performance. However, the leanness strategy does not necessarily influence their supply chain performance. The supply chain performance and partnership strategy have a positive influence on the SME performance.

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