Assessing the impact of supply chain agility on operational performances-a PLS-SEM approach

Abstract

Purpose This study aims to examine the effect of supply chain agility (SCA) on operational performance (OP) measurements of steel manufacturing firms. It also investigates the role of cost efficiencies concerning enhance OPs. Design/methodology/approach The study is based on an experimental research design by collecting data from responses 398 responses of key officials of India’s steel manufacturing firms. Analyses are carried to explore this modern concept with the help of Smart-partial least square (PLS) version 3.3.2 with confirmatory factor analysis and PLS structural equational modelling. Findings SCA factor (SCAF) directly has influenced the firm’s OP. It also represents cost efficiencies that have partial mediation between the SCAF and OP. The impact of cost efficiencies on OPs is strongly significant as compared to the impact of SCAF on cost efficiencies. Practical implications Management teams in the manufacturing industry should stress the role of SCA as a comprehensive concept in responding to market needs in a volatile environment. SCA reflects one of its winning strategies in today’s dynamic and competitive world. Managers must thoroughly know the ramifications of agility to develop a mechanism for determining the procedures and identifying inequality in SC operation. Originality/value This study speaks explicitly about the linkage between SCAF, OP, CE. It is an addition to the existing theories of RBV. Enhancements in OP measurements, specifically performance and flexibility, will lead to better firm performance. study conceptualizing the complementing effects of SCA (IS capability) and OPs and second cost efficiencies play positive partial mediating effect in between the link. The achievement of SC agile is especially a critical approach to Boost customer satisfaction and differentiate market position.

The Role of Supply Chain Flexibility and Agility in Improving SMEs’ Performance

“…This result also supports Panigrahi, et al (2022), who suggest that SCA exemplifies one of its successful techniques in the unpredictable and competitive today's market. Additionally, they also argue that the development of SCA is a crucial strategy to increase satisfaction levels and establish a distinct market dominance (Panigrahi et al, 2022). Furthermore, SCA is also proven to have the function of mediating the effect of SCF on SMEs' performance.…”

“…Chan et al (2017) found that organizational performance increases with an improvement in SCA. The same results were found in other studies where SCA has a role in competitively improving business performance (Panigrahi, et al, 2022;Jermsittiparsert, 2022;Swafford et al, 2008).…”

“…Ultimately, in the face of fierce competition and considerable uncertainty, possessing these competitive advantages can be the foundation of business success (Chan et al, 2017). This result also supports Panigrahi, et al (2022), who suggest that SCA exemplifies one of its successful techniques in the unpredictable and competitive today's market. Additionally, they also argue that the development of SCA is a crucial strategy to increase satisfaction levels and establish a distinct market dominance (Panigrahi et al, 2022).…”

“…Flexibility is a crucial operational characteristic that has been well-studied (Panigrahi, et al, 2022). Flexibility refers to how well a business can adjust to shifting market dynamics (Shekarian et al, 2020).…”

Supply Chain Resilience and Operational Performance: The Role of Digital Technologies in Jordanian Manufacturing Firms

“…The agility of a firm's SC refers to its capacity to respond rapidly to consumer needs while also maintaining costs in check (Golgeci et al 2019); these requirements can only be achieved using advanced digital technology. Panigrahi et al (2022) examined the relationship between SCA and operational performance in India. A strong relationship between agility in the SC and operational performance development has been improved.…”