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The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry

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  • Chan, Alan T.L.
  • Ngai, Eric W.T.
  • Moon, Karen K.L.

Abstract

Responsiveness to customers and markets is an indispensable requirement for all industries, particularly the fashion industry. The present study attempts to address this issue by employing a resource-based perspective as a lens for exploring the major antecedents and consequences of supply chain agility at both the strategic and operational levels. Drawing on a review of the extant literature, we argue that two organizational flexibility factors – strategic flexibility and manufacturing flexibility – are the critical antecedents to supply chain agility. In addition, supply chain agility, strategic flexibility, and manufacturing flexibility are all significant factors in firm performance. A conceptual framework for the arguments was developed and tested through an empirical study of selected industrial practitioners. Data from a sample of 141 garment manufacturers were analyzed using structural equation modeling. The results reveal that both strategic flexibility and manufacturing flexibility positively influence supply chain agility. However, strategic flexibility has a direct and significant influence on firm performance while manufacturing flexibility does not. Furthermore, supply chain agility plays an important role in mediating the effects of both strategic and manufacturing flexibilities on firm performance. The findings of the present study add to the understanding of supply chain management, with a focus on supply chain agility in the fashion manufacturing industry.

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  • Chan, Alan T.L. & Ngai, Eric W.T. & Moon, Karen K.L., 2017. "The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry," European Journal of Operational Research, Elsevier, vol. 259(2), pages 486-499.
    • Handle: RePEc:eee:ejores:v:259:y:2017:i:2:p:486-499
    DOI: 10.1016/j.ejor.2016.11.006
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    1. Allam Yousuf & Vahid Zeynvand Lorestani & Judit Oláh & János Felföldi, 2021. "Does Uncertainty Moderate the Relationship between Strategic Flexibility and Companies’ Performance? Evidence from Small and Medium Pharmaceutical Companies in Iran," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    2. Neelam Akbar & Alam Zeb & Shabir Ahmad, 2017. "The Impact of Brand Rejuvenation on Consumer Purchase Intention: Brand Attitude as Mediator," Global Regional Review, Humanity Only, vol. 2(1), pages 197-210, June.
    3. Shivam Gupta & Vinayak A. Drave & Surajit Bag & Zongwei Luo, 2019. "Leveraging Smart Supply Chain and Information System Agility for Supply Chain Flexibility," Information Systems Frontiers, Springer, vol. 21(3), pages 547-564, June.
    4. Sujan Piya & Ahm Shamsuzzoha & Mohammad Khadem & Nasr Al-Hinai, 2020. "Identification of Critical Factors and Their Interrelationships to Design Agile Supply Chain: Special Focus to Oil and Gas Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 263-281, September.
    5. Man Zhu & Hongyan Gao, 2021. "The antecedents of supply chain agility and their effect on business performance: an organizational strategy perspective," Operations Management Research, Springer, vol. 14(1), pages 166-176, June.
    6. Hung Nguyen & George Onofrei & Norma Harrison & Dothang Truong, 2020. "The influence of cultural compatibility and product complexity on manufacturing flexibility and financial performance," Operations Management Research, Springer, vol. 13(3), pages 171-184, December.
    7. Orji, Ifeyinwa Juliet & Liu, Shaoxuan, 2020. "A dynamic perspective on the key drivers of innovation-led lean approaches to achieve sustainability in manufacturing supply chain," International Journal of Production Economics, Elsevier, vol. 219(C), pages 480-496.
    8. Sumiati & Ainur Rofiq & Sigit Pramono, 2019. "The Role of Strategic Planning and Flexibility in Shaping SMEs Market Orientation in Turbulence Business Environment," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 221-236.
    9. Vikash Sharma & Rakesh D. Raut & Sachin Kumar Mangla & Balkrishna E. Narkhede & Sunil Luthra & Ravindra Gokhale, 2021. "A systematic literature review to integrate lean, agile, resilient, green and sustainable paradigms in the supply chain management," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1191-1212, February.
    10. Dejana Nikolic & Milica Kostic-Stankovic, 2022. "Improving the Economic Sustainability of the Fashion Industry: A Conceptual Model Proposal," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    11. Sanjai Kumar Shukla & Sushil & Manoj Kumar Sharma, 2019. "Managerial Paradox Toward Flexibility: Emergent Views Using Thematic Analysis of Literature," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(4), pages 349-370, December.
    12. Marta Pérez-Pérez & Canan Kocabasoglu-Hillmer & Ana María Serrano-Bedia & María Concepción López-Fernández, 2019. "Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 1-23, December.
    13. György Kovács & Béla Illés, 2019. "Development of an Optimization Method and Software for Optimizing Global Supply Chains for Increased Efficiency, Competitiveness, and Sustainability," Sustainability, MDPI, vol. 11(6), pages 1-28, March.
    14. Hazen, Benjamin T. & Bradley, Randy V. & Bell, John E. & In, Joonhwan & Byrd, Terry A., 2017. "Enterprise architecture: A competence-based approach to achieving agility and firm performance," International Journal of Production Economics, Elsevier, vol. 193(C), pages 566-577.
    15. Chih-Hung Hsu & Ru-Yue Yu & An-Yuan Chang & Wan-Ling Liu & An-Ching Sun, 2022. "Applying Integrated QFD-MCDM Approach to Strengthen Supply Chain Agility for Mitigating Sustainable Risks," Mathematics, MDPI, vol. 10(4), pages 1-41, February.
    16. Liliana Avelar-Sosa & Jorge L. García-Alcaraz & José M. Mejía-Muñoz & Aidé A. Maldonado-Macías & Giner Alor Hernández, 2018. "Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    17. Roy, Vivek & Silvestre, Bruno S. & Singh, Shubham, 2020. "Reactive and proactive pathways to sustainable apparel supply chains: Manufacturer's perspective on stakeholder salience and organizational learning toward responsible management," International Journal of Production Economics, Elsevier, vol. 227(C).
    18. Yanling Yang & Yanling Zheng & Guojie Xie & Yu Tian, 2022. "The Influence Mechanism of Strategic Partnership on Enterprise Performance: Exploring the Chain Mediating Role of Information Sharing and Supply Chain Flexibility," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    19. Azzam A. Abou-Moghli, 2018. "An Assessment of Strategic Management on Supply Chain Management and Logistics - A Path Analysis," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 7(2), pages 29-39, October.
    20. Vincent Montenero & Cristina Cazorzi, 2021. "Attempts by MNCs to Expand the Creative and Innovative Spirit through the Concept of Agility: Role of Global Managers," Post-Print halshs-03286310, HAL.
    21. Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2018. "Impact of supply chain risk on agility performance: Mediating role of supply chain integration," International Journal of Production Economics, Elsevier, vol. 205(C), pages 118-138.
    22. Shekarian, Mansoor & Reza Nooraie, Seyed Vahid & Parast, Mahour Mellat, 2020. "An examination of the impact of flexibility and agility on mitigating supply chain disruptions," International Journal of Production Economics, Elsevier, vol. 220(C).
    23. Palominos, Pedro & Quezada, Luis E. & Gonzalez, Miguel A., 2019. "Incorporating the voice of the client in establishing the flexibility requirement in a production system," International Journal of Production Economics, Elsevier, vol. 211(C), pages 34-43.

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