The effect of environmental uncertainty, information quality, and collaborative logistics on supply chain flexibility of small manufacturing firms in India

Asia Pacific Journal of Marketing and Logistics

Volumn 25, Issue 5, 2013, Pages 784-802

  Nagarajan, Vivek ^a   Savitskie, Katrina ^b   Ranganathan, Sampathkumar ^c   Sen, Sandipan ^d   Alexandrov, Aliosha ^e  

^a PSG Institute of Pulmonary Medicine   (India)

^b SAVANNAH STATE UNIVERSITY   (United States)

^c UNIVERSITY OF WISCONSIN GREEN BAY   (United States)

^d SOUTHEAST MISSOURI STATE UNIVERSITY   (United States)

^e UNIVERSITY OF WISCONSIN OSHKOSH   (United States)

Author keywords

Channels of distribution; Collaboration coordination; Global business; International logistics; Logistics operations and management; PLS

Indexed keywords

EID: 84977648528     PISSN: 13555855     EISSN: 17584248     Source Type: Journal    
DOI: 10.1108/APJML-09-2011-0065     Document Type: Article

References (88)

1. Achrol, R.S. and Stern, L.W. (1988), “Environmental determinants of decision-making uncertainty in marketing channels”, Journal of Market Research, Vol. 25 No. 1, pp. 36-50.
2. Aldrich, H.E. (1979), Organizations and Environments, Prentice-Hall, Englewood Cliffs, NJ.
3. Anderson, E., Lodish, L.M. and Weitz, B. (1987), “Resource allocation behaviour in conventional channels”, Journal of Marketing Research, Vol. 24 No. 1, pp. 85-97.
4. Aprile, D., Garavelli, A.C. and Giannoccaro, I. (2005), “Operations planning and flexibility in a supply chain”, Production Planning & Control, Vol. 16 No. 1, pp. 21-31.
5. Araujo, L., Dubois, A. and Gadde, L.-E. (1999), “Managing interfaces with suppliers”, Industrial Marketing Management, Vol. 28 No. 5, pp. 497-506.
6. Arshinder, Kanda, A. and Deshmukh, S.G. (2007), “Role of supply chain coordination in OM: select experiences from India”, Proceedings of POMS 18th Annual Conference, Dallas, TX, USA.
7. Auramo, J., Kauremaa, J. and Tanskanen, K. (2005), “Benefits of IT in supply chain management: an explorative study of progressive companies”, International Journal of Physical Distribution & Logistics Management, Vol. 35 No. 2, pp. 82-100.
8. Barney, J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120.
9. Barrett, P. (2006), “Structural equation modelling: adjudging model fit”, Personality and Individual Differences, Vol. 42 No. 5, pp. 815-824.
10. Bechtel, C. and Jayaram, J. (1997), “Supply chain management: a strategic perspective”, International Journal of Logistics Management, Vol. 8 No. 1, pp. 15-34.
11. Berry, D., Towill, D.R. and Wadsley, N. (1994), “Supply chain management in the electronics products industry”, International Journal of Physical Distribution & Logistics Management, Vol. 24 No. 10, pp. 20-32.
12. Bilek, G.M. (2010), “The value of information sharing in a build-to-order supply chain”, The Business Review, Vol. 15 No. 1, pp. 131-136.
13. Bucklin, L.P. and Sengupta, S. (1993), “Organizing successful co-marketing alliances”, Journal of Marketing, Vol. 57 No. 2, pp. 32-46.
14. Carter, R.E., Lonial, S.C. and Raju, P.S. (2010), “Impact of quality management on hospital performance: an empirical examination”, Quality Management Journal, Vol. 17 No. 7, pp. 8-24.
15. Childerhouse, P., Deakins, E., Böhme, T., Towill, D.R., Disney, S.M. and Banomyong, R. (2011), “Supply chain integration: an international comparison of maturity”, Asia Pacific Journal of Marketing and Logistics, Vol. 23 No. 4, pp. 531-552.
16. Chin, W.W. and Newsted, P.R. (1999), “Structural equation modeling analysis with small samples using partial least squares”, in Hoyle, R. (Ed.), Statistical Strategies for Small Sample Research, Sage, Thousand Oaks, CA, pp. 307-341.
17. Daft, R.L. (1983), Organization Theory and Design, West, New York, NY.
18. Das, T.K. and Teng, B.S. (2000), “A resource-based theory of strategic alliances”, Journal of Management, Vol. 26 No. 1, pp. 31-61.
19. Duncan, R.B. (1972), “Characteristics of organizational environments and perceived environmental uncertainty”, Administrative Science Quarterly, Vol. 17 No. 3, pp. 313-327.
20. Fornell, C. and Larcker, D.F. (1981), “Evaluating structural equation models with unobservable variables and measurement error”, Journal of Marketing Research, Vol. 18 No. 1, pp. 39-50.
21. Gerwin, D. (1987), “An agenda for research on the flexibility of manufacturing processes”, International Journal of Operations & Productions Management, Vol. 7 No. 1, pp. 38-49.
22. Gravier, M.J., Randall, W.S. and Strutton, D. (2008), “Investigating the role of knowledge in alliance performance”, Journal of Knowledge Management, Vol. 12 No. 4, pp. 117-130.
23. Gupta, A.K. and Wilemon, D.L. (1990), “Accelerating the development of technology-based new products”, California Management Review, Vol. 32 No. 2, pp. 24-44.
24. Hansen, M.T. (1999), “The search-transfer problem: the role of weak ties in sharing knowledge across organization subunits”, Administrative Science Quarterly, Vol. 44 No. 1, pp. 82-111.
25. Heinrich, C.E. and Simchi-Levi, D. (2005), “Do IT investments really change financial performance?”, Supply Chain Management Review, Vol. 9 No. 4, pp. 22-28.
26. Huang, G.Q., Lau, S.K. and Mak, K.L. (2003), “The impacts of sharing production information on supply chain dynamics: a review of the literature”, International Journal of Production Research, Vol. 41 No. 7, pp. 1483-1517.
27. Jaworski, B.J. and Kohli, A.K. (1993), “Market orientation: antecedents and consequences”, Journal of Marketing, Vol. 57 No. 3, pp. 53-70.
28. Johnston, M.A.H. (2004), “An in-depth study of how small and medium-sized enterprises (SMEs) deal with environmental uncertainty in their future oriented decision making process”, unpublished doctoral thesis, Faculty of Business and Management, University of Ulster, Londonderry.
29. Koste, L.L. and Malhotra, M.J. (1999), “A theoretical framework for analyzing the dimensions of manufacturing flexibility”, Journal of Operations Management, Vol. 18 No. 1, pp. 75-93.
30. Kumar, N. (1996), “The power of trust in manufacturer retailer relationships”, Harvard Business Review, Vol. 74 No. 6, pp. 92-106.
31. Kumar, N., Stern, L.W. and Anderson, J.C. (1993), “Conducting interorganizational research using key informants”, Academy of Management Journal, Vol. 35, December, pp. 633-1651.
32. Lee, H.L. (2002), “Aligning supply chain strategies with product uncertainties”, California Management Review, Vol. 44 No. 3, pp. 105-119.
33. Lenz, R.T. (1980), “Environment, strategy, organization structure and performance: patterns in one industry”, Strategic Management Journal, Vol. 1 No. 3, pp. 209-226.
34. Li, S. (2002), “An integrated model for supply chain management practice, performance and competitive advantage”, unpublished doctoral dissertation, University of Toledo, Toledo, OH.
35. McAdam, R. and McCormack, D. (2001), “Integrating business processes for global alignment and supply chain management”, Business Process Management Journal, Vol. 7 No. 2, pp. 113-130.
36. McEvily, B. and Zaheer, A. (1999), “Bridging ties: a source of firm heterogeneity in competitive capabilities”, Strategic Management Journal, Vol. 20 No. 12, pp. 1133-1156.
37. McNamara, G.M., Luce, R.A. and Thompson, G.H. (2002), “Examining the effect of complexity in strategic group knowledge structures on firm performance”, Strategic Management Journal, Vol. 23 No. 2, pp. 153-170.
38. Mason-Jones, R. and Towill, D.R. (1997), “Information enrichment: designing the supply chain for competitive advantage”, Supply Chain Management: An International Journal, Vol. 2 No. 4, pp. 137-148.
39. Mason-Jones, R. and Towill, D.R. (1999), “Using the information de-coupling point to improve supply chain performance”, International Journal of Logistics Management, Vol. 19 No. 2, pp. 13-36.
40. Mathews, J. (2003), “Competitive dynamics and economic learning: an extended resource-based view”, Industrial and Corporate Change, Vol. 12, pp. 115-145.
41. Metters, R. (1997), “Quantifying the bullwhip effect in supply chains”, Journal of Operations Management, Vol. 15 No. 2, pp. 89-100.
42. Miller, D. and Dröge, C. (1986), “Psychological and traditional determinants of structure”, Administrative Science Quarterly, Vol. 31 No. 4, pp. 539-560.
43. Mohr, J., Fischer, R.J. and Nevin, J.R. (1996), “Collaborative communication in inter firm relationship: moderating effects of integration and control”, Journal of Marketing, Vol. 60 No. 3, pp. 103-115.
44. Monczka, R.M., Petersen, K.J., Handfield, R.B. and Ragatz, G.L. (1998), “Success factors in strategic supplier alliances: the buying company perspective”, Decision Sciences, Vol. 29 No. 3, pp. 553-577.
45. Narasimhan, R. and Das, A. (1999), “Manufacturing agility and supply chain management practices”, Production & Inventory Management Journal, Vol. 40 No. 1, pp. 4-10.
46. Narasimhan, R. and Das, A. (2000), “An empirical examination of sourcing's role in developing manufacturing flexibilities”, International Journal of Production Research, Vol. 38 No. 4, pp. 875-893.
47. Nelson, R. and Winter, S. (1982), An Evolutionary Theory of Economic Change, Harvard University Press, Cambridge, MA.
48. Nunnally, J.C. (1978), Psychometric Theory, McGraw-Hill, New York, NY.
49. Olorunniwo, F.O. and Li, X. (2010), “Information sharing and collaboration practices in reverse logistics”, Supply Chain Management: An International Journal, Vol. 15 No. 6, pp. 454-462.
50. Omar, A., Davis-Sramek, B., Myers, M.B. and Mentzer, J.T. (2012), “A global analysis of orientation, coordination, and flexibility in supply chains”, Journal of Business Logistics, Vol. 33 No. 2, pp. 128-144.
51. Paswan, A.K., Dant, R.P. and Lumpkin, J.R. (1998), “An empirical investigation of the linkage among relationalism, environmental uncertainty, and bureaucratization”, Journal of Business Research, Vol. 43 No. 3, pp. 125-140.
52. Penrose, E. (1959), The Theory of Growth of the Firm, Billing and Sons Limited, London.
53. Reagans, R. and McEvily, B. (2003), “Network structure and knowledge transfer: the effects of cohesion and range”, Administrative Science Quarterly, Vol. 48 No. 2, pp. 240-267.
54. Riley, M. and Lockwood, A. (1997), “Strategies and measurement for workforce flexibility: an application of functional flexibility in a service setting”, International Journal of Operations & Production Management, Vol. 17 No. 4, pp. 413-419.
55. Ringle, C.M., Wende, S. and Wills, A. (2005), SmartPLS 2.0 (Beta), available at: www.smartpls.de.
56. Sahadev, S. (2008), “Economic satisfaction and relationship commitment in channels: the moderating role of environmental uncertainty, collaborative communication and coordination strategy”, European Journal of Marketing, Vol. 42 Nos 1/2, pp. 178-195.
57. Sahay, B.S. and Mohan, R. (2003), “Supply chain management practices in Indian industry”, International Journal of Physical Distribution & Logistics Management, Vol. 33 No. 7, pp. 582-606.
58. Sahin, F. and Robinson, E.P. (2002), “Flow coordination and information sharing in supply chains: review, implications, and directions for future research”, Decision Sciences, Vol. 33 No. 3, pp. 505-536.
59. Sánchez, A.M. and Pérez, M. (2005), “Supply chain flexibility and firm performance: a conceptual model and empirical study in the automotive industry”, International Journal of Operations & Production Management, Vol. 25 No. 7, pp. 681-700.
60. Selko, A. (2008), “The rise of Indian manufacturing”, Industry Week, Vol. 257 No. 12, pp. 36-40.
61. Skipper, J.B. and Hanna, J.B. (2009), “Minimizing supply chain disruption risk through enhanced flexibility”, International Journal of Physical Distribution & Logistics Management, Vol. 39 No. 5, pp. 404-427.
62. Slater, S.F. and Narver, J.C. (1994), “Does competitive environment moderate the market orientation-performance relationship?”, Journal of Marketing, Vol. 58 No. 1, pp. 46-55.
63. Soper, D.S. (2012), A-priori Sample Size Calculator for Multiple Regression (Online Software), available at: wwwdanielsopercom/statcalc3.
64. Squire, B., Cousins, P.D., Lawson, B. and Brown, S. (2009), “The effect of supplier manufacturing capabilities on buyer responsiveness: the role of collaboration”, International Journal of Operations & Production Management, Vol. 29 No. 8, pp. 766-788.
65. Stank, T.P., Crum, M. and Arango, M. (1999), “Benefits of interfirm coordination in food industry supply chains”, Journal of Business Logistics, Vol. 20 No. 2, pp. 21-41.
66. Stevenson, M. and Spring, M. (2007), “Flexibility from a supply chain perspective: definition and review”, International Journal of Operations & Production Management, Vol. 27 No. 7, pp. 685-713.
67. Stevenson, M. and Spring, M. (2009), “Supply chain flexibility: an inter-firm empirical study”, International Journal of Operations & Production Management, Vol. 29 No. 9, pp. 946-971.
68. Sun, S.-Y., Hsu, M.-H. and Hwang, W.-J. (2009), “The impact of alignment between supply chain strategy and environmental uncertainty on SCM performance”, Supply Chain Management: An International Journal, Vol. 14 No. 3, pp. 201-212.
69. Swamidass, P.M. and Newell, W.T. (1987), “Manufacturing strategy, environmental uncertainty and performance: a path analytical model”, Management Science, Vol. 33 No. 4, pp. 509-524.
70. Teece, D., Pisano, G. and Shuen, A. (1997), “Dynamic capabilities and strategic management”, Strategic Management Journal, Vol. 18 No. 7, pp. 509-533.
71. Thakkar, J., Kanda, A. and Deshmukh, S.G. (2011), “Supply chain issues in Indian manufacturing SMEs: insights from six case studies”, Journal of Manufacturing Technology Management, Vol. 23 No. 5, pp. 634-664.
72. Thomas, D. and Griffin, P.M. (1996), “Coordinated supply chain management”, European Journal of Operational Research, Vol. 94 No. 1, pp. 1-15.
73. Turner, J.R. (1993), “Integrated supply chain management: what's wrong with this picture”, Industrial Engineering, Vol. 25 No. 12, pp. 52-55.
74. Upton, D.M. (1994), “The management of manufacturing flexibility”, California Management Review, Vol. 36 No. 2, pp. 72-89.
75. Vachon, S., Halley, A. and Beaulieu, M. (2009), “Aligning competitive priorities in the supply chain: the role of interactions with suppliers”, International Journal of Operations & Production Management, Vol. 29 No. 4, pp. 322-340.
76. Vickery, S., Calantone, R. and Dröge, C. (1999), “Supply chain flexibility: an empirical study”, The Journal of Supply Chain Management, Vol. 35 No. 3, pp. 16-24.
77. Vokurka, R.J. and O'Leary-Kelly, S.W. (2000), “A review of empirical research on manufacturing flexibility”, Journal of Operations Management, Vol. 18 No. 4, pp. 485-501.
78. Wernerfelt, B. (1984), “A resource-based view of the firm”, Strategic Management Journal, Vol. 5 No. 2, pp. 171-180.
79. Wiengarten, F., Humphreys, P., Cao, G., Fynes, B. and McKittrick, A. (2010), “Collaborative supply chain practices and performance: exploring the key role of information quality”, Supply Chain Management: An International Journal, Vol. 15 No. 6, pp. 463-473.
80. Wold, H. (1989), “Introduction to the second generation of multivariate analysis”, in Wold, H. (Ed.), Theoretical Empiricism, Paragon House, New York, NY, pp. vii-xi.
81. Wong, C.Y., Boon-itt, S. and Wong, C.W.Y. (2011), “The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance”, Journal of Operations Management, Vol. 29 No. 6, pp. 604-615.
82. Wu, Y.-C.J. and Cheng, M.-J. (2008), “Logistics outlook: an Asian perspective”, International Journal of Integrated Supply Management, Vol. 4 No. 1, pp. 4-15.
83. Yi, C.Y., Ngai, E.W.T. and Moon, K.-L. (2011), “Supply chain flexibility in an uncertain environment: exploratory findings from five case studies”, Supply Chain Management: An International Journal, Vol. 16 No. 4, pp. 271-283.
84. Zhang, Q., Vonderembse, M.A. and Lim, J.-S. (2003), “Manufacturing flexibility: defining and analyzing relationships among competence, capability, and customer satisfaction”, Journal of Operations Management, Vol. 21 No. 2, pp. 173-191.
85. Zhao, X., Xie, J. and Hang, W.J. (2002), “The impact of information sharing and ordering co-ordination on supply chain performance”, Supply Chain Management: An International Journal, Vol. 7 No. 1, pp. 24-40.
86. Brown, S.A. and Venkatesh, V. (2005), “Model of adoption of technology in households: a baseline model test and extension incorporating household life cycle”, MIS Quarterly, Vol. 29 No. 3, pp. 399-426.
87. Hair, J., Sarstedt, M., Ringle, C. and Mena, J. (2012), “An assessment of the use of partial least squares structural equation modeling in marketing research”, Journal of the Academy of Marketing Science, Vol. 40 No. 3, pp. 414-433.
88. Hsu, C.-C., Kannan, V.R., Tan, K.-C. and Leong, G.K. (2008), “Information sharing, buyer-supplier relationships, and firm performance: a multi-region analysis”, International Journal of Physical Distribution & Logistics Management, Vol. 38 No. 4, pp. 296-310.