Effects of supply chain flexibility towards supply chain collaboration and supply chain agility

Facing uncertain environment, the cultivation of agility is approached as a strategic ability that assists organizations rapidly to sense and respond internal and external uncertainties via effective collaboration of supply chain relationships. The objective of the study is to uncover how organizational antecedent, supply chain collaboration (SCC) and organizational competency, supply chain flexibility (SCF), aimed at augmenting the supply chain agility (SCA) of firms. T
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Effects of supply chain flexibility towards supply chain collaboration and supply chain agility 170 Int. J Sup. Chain. Mgt Vol. 8, No. 1, February 2019 Effects of Supply Chain Flexibility towards Supply Chain Collaboration and Supply Chain Agility Noriza Mohd Jamala* ,Wee Sin Yia , Thoo Ai China and Norhalimah Idrisa a Univerisiti Teknologi Malaysia * m-noriza@utm.myAbstract - Facing uncertain environment, the flexibility (SCF) in terms of mix flexibility andcultivation of agility is approached as a strategic ability volume flexibility are vital to provision of thethat assists organizations rapidly to sense and respond superior value creation to the customers, supply chaininternal and external uncertainties via effective partners and organization itself. The SCF reflectscollaboration of supply chain relationships. The flexibility in supply chains are capable to adaptobjective of the study is to uncover how organizational effectively to changes in demand and disruptions inantecedent, supply chain collaboration (SCC) andorganizational competency, supply chain flexibility supply whilst maintaining customer service(SCF), aimed at augmenting the supply chain agility levels.[1],[2].(SCA) of firms. To take advantage of available marketopportunities, firms would see the supply chain that are 2. Theoretical Developmentflexible will outperform those are less agile. Thus, SCFhas emerged as a vital management strategy to Focusing on enhancement of small andstrengthen the relationship between SCC and SCA as medium manufacturing firm’s agility in supply chain,firms will be more flexible and responsive to anunpredictable environment and cope with ever changing the organizational antecedents of agility form thecustomer’s requirements. In this paper, an attempt is central elements of interest. The theoretical modelmade to present a conceptual model of the postulated is shown in Figure 1. Firstly, it isorganizational antecedents that affect the agility of hypothesized that a firm’s SCA is impacted, as directsupply chain in the context of small and medium antecedent by organizational practices of: (1) SCC andmanufacturing firms. SCF. The rationale for the hypothesized model structure, definitions for various constructs, rationaleKeywords— Supply Chain Collaboration, Supply Chain for relating them and the resulting hypotheses areAgility, Supply Chain Flexibility outlined below, starting with two organizational practices.1. Introduction 2.1 Supply Chain Collaboration The concept of collaboration theoretically An emerging body of research in supply envisages that the supply chain members who becomechain management pertains to the development of involved in collaborative efforts will outperform insupply chain collaboration (SCC) and supply chain term of low cost strategy, visibility of market demandagility (SCA) in order to cope with the challenges of in production and customer responsiveness.more dynamic market places. In recent years, in Simatupang et al.[3] concluded that three criticaladdition to increasing levels of competitive pressure, components of SCC such as information sharing,business environment especially for small and decision synchronization, and incentive alignmentmedium manufacturing firms have also been facilitate the improvement in meeting customercharacterized by growing levels of unpredictability responsiveness. Specifically, the previous studiesand turbulence. Therefore, it has been stressed that supported the finding that information sharing,organizations must consciously develop collaboration decision synchronization and incentive alignmentto enhance agility for managing disruption risks and [4] able to facilitate the process of fulfilment due toensure uninterrupted service to customers. In the ...