Determining how internal and external process connectivity affect supply chain agility: a life-cycle theory perspective

Abstract

This paper examines how organizations connect internal and external processes to enable an agile response to continuous change. Drawing on life cycle theory, a hypothetical model is developed regarding the independent and combinative effects of internal and external process connectivity on supply chain agility and the moderating effect of product and supply complexity. The model is tested using hierarchical regression analysis based on survey data from 143 managers at German manufacturing firms. Our findings suggest that internal and external process connectivity have a positive effect on supply chain agility independently and collectively, with complexity having a moderating effect in particular instances. The findings build on prior research regarding the process-related enablers of supply chain agility; research that has yet to clearly differentiate between internal and external processes or uses the terms interchangeably. The theoretical contribution of the paper rests on its extension of life cycle theory to the supply chain.

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