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Response strategy to environment context factors using a lean and agile approach: Implications for firm performance

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  • Srinivasan, Mahesh
  • Srivastava, Prashant
  • Iyer, Karthik N.S.

Abstract

Based on the environment-strategy performance perspective and dynamic capabilities framework, we develop a theoretical model and hypotheses specifying how supply chain collaboration as a response to environment context factors – competitive intensity, supply uncertainty, technological turbulence and market turbulence, using a lean and agile strategy may influence firm performance. We test the model using partial least square structural equation modelling on data collected from a field survey with responses from 152 manufacturing firms representing a variety of industries. Empirical findings generally support the relationship between collaboration and firm performance using a lean and agile strategy. Also, for firms in industries that face environments characterised by high supply uncertainty and competitive intensity with, technological turbulence, the study finds evidence of a direct relationship between these environmental factors and supply chain collaboration. The findings provide an initial strategic response framework for appropriately aligning a lean and agile supply chain strategy through collaboration with environment context factors to achieve firm performance improvements.

Suggested Citation

  • Srinivasan, Mahesh & Srivastava, Prashant & Iyer, Karthik N.S., 2020. "Response strategy to environment context factors using a lean and agile approach: Implications for firm performance," European Management Journal, Elsevier, vol. 38(6), pages 900-913.
    • Handle: RePEc:eee:eurman:v:38:y:2020:i:6:p:900-913
    DOI: 10.1016/j.emj.2020.04.003
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