IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v205y2018icp329-341.html
   My bibliography  Save this article

Determinants of sourcing flexibility and its impact on performance

Author

Listed:
  • Wagner, Stephan M.
  • Grosse-Ruyken, Pan Theo
  • Erhun, Feryal

Abstract

Sourcing flexibility is an increasingly important building block of supply chain flexibility. Our study which is grounded in information processing theory argues that two mechanisms can support firms in building up sourcing flexibility. Based on a survey of 336 manufacturing firms from Europe and the U.S. and using partial least squares (PLS) modeling as well as hierarchical regression analysis, we show that supplier evaluation and selection, and the integration of information systems at the buyer-supplier interface are positively related to sourcing flexibility. Sourcing flexibility, in turn, is curvilinearly related to delivery performance. Finally, delivery performance positively influences the product's financial performance. The strong associations between sourcing flexibility, delivery performance, and product financial performance underscore that sourcing flexibility merits the attention of supply chain managers during supplier selection and purchasing decisions.

Suggested Citation

  • Wagner, Stephan M. & Grosse-Ruyken, Pan Theo & Erhun, Feryal, 2018. "Determinants of sourcing flexibility and its impact on performance," International Journal of Production Economics, Elsevier, vol. 205(C), pages 329-341.
    • Handle: RePEc:eee:proeco:v:205:y:2018:i:c:p:329-341
    DOI: 10.1016/j.ijpe.2018.08.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527318303220
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2018.08.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Karl G. Kempf & Feryal Erhun & Erik F. Hertzler & Timothy R. Rosenberg & Chen Peng, 2013. "Optimizing Capital Investment Decisions at Intel Corporation," Interfaces, INFORMS, vol. 43(1), pages 62-78, February.
    2. Qrunfleh, Sufian & Tarafdar, Monideepa, 2014. "Supply chain information systems strategy: Impacts on supply chain performance and firm performance," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 340-350.
    3. Janet Y Murray & Masaaki Kotabe & Albert R Wildt, 1995. "Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 181-202, March.
    4. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    5. Pamela Pen-Erh Pei & David Simchi-Levi & Tunay I. Tunca, 2011. "Sourcing Flexibility, Spot Trading, and Procurement Contract Structure," Operations Research, INFORMS, vol. 59(3), pages 578-601, June.
    6. Sreedevi, R. & Saranga, Haritha, 2017. "Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation," International Journal of Production Economics, Elsevier, vol. 193(C), pages 332-342.
    7. Tang, Christopher & Tomlin, Brian, 2008. "The power of flexibility for mitigating supply chain risks," International Journal of Production Economics, Elsevier, vol. 116(1), pages 12-27, November.
    8. Dileep More & A. Subash Babu, 2009. "Supply chain flexibility: a state-of-the-art survey," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 5(1), pages 29-65.
    9. Pravin Kumar & Rajesh K. Singh & Rakesh Kumar, 2017. "An integrated framework of interpretive structural modeling and graph theory matrix approach to fix the agility index of an automobile manufacturing organization," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 342-352, January.
    10. Gianluca Spina & Federico Caniato & Davide Luzzini & Stefano Ronchi, 2016. "Assessing the use of External Grand Theories in Purchasing and Supply Management research," Post-Print hal-01289952, HAL.
    11. Moon, Karen Ka-Leung & Yi, Candace Ying & Ngai, E.W.T., 2012. "An instrument for measuring supply chain flexibility for the textile and clothing companies," European Journal of Operational Research, Elsevier, vol. 222(2), pages 191-203.
    12. Chen, Chen-Tung & Lin, Ching-Torng & Huang, Sue-Fn, 2006. "A fuzzy approach for supplier evaluation and selection in supply chain management," International Journal of Production Economics, Elsevier, vol. 102(2), pages 289-301, August.
    13. Warren H. Hausman & John S. Thorbeck, 2010. "Fast Fashion: Quantifying the Benefits," International Handbooks on Information Systems, in: T. C. Edwin Cheng & Tsan-Ming Choi (ed.), Innovative Quick Response Programs in Logistics and Supply Chain Management, pages 315-329, Springer.
    14. Ho, William & Xu, Xiaowei & Dey, Prasanta K., 2010. "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of Operational Research, Elsevier, vol. 202(1), pages 16-24, April.
    15. Jay R. Galbraith, 1974. "Organization Design: An Information Processing View," Interfaces, INFORMS, vol. 4(3), pages 28-36, May.
    16. Stephan M. Wagner & Christian Rau & Eckhard Lindemann, 2010. "Multiple Informant Methodology: A Critical Review and Recommendations," Sociological Methods & Research, , vol. 38(4), pages 582-618, May.
    17. M. Bensaou & N. Venkatraman, 1995. "Configurations of Interorganizational Relationships: A Comparison Between U.S. and Japanese Automakers," Management Science, INFORMS, vol. 41(9), pages 1471-1492, September.
    18. Stephen C. Graves & Brian T. Tomlin, 2003. "Process Flexibility in Supply Chains," Management Science, INFORMS, vol. 49(7), pages 907-919, July.
    19. Chen Peng & Feryal Erhun & Erik F. Hertzler & Karl G. Kempf, 2012. "Capacity Planning in the Semiconductor Industry: Dual-Mode Procurement with Options," Manufacturing & Service Operations Management, INFORMS, vol. 14(2), pages 170-185, April.
    20. Nilesh Saraf & Christoph Schlueter Langdon & Sanjay Gosain, 2007. "IS Application Capabilities and Relational Value in Interfirm Partnerships," Information Systems Research, INFORMS, vol. 18(3), pages 320-339, September.
    21. Christian Busse & Jan Meinlschmidt & Kai Foerstl, 2017. "Managing Information Processing Needs in Global Supply Chains: A Prerequisite to Sustainable Supply Chain Management," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(1), pages 87-113, January.
    22. Purvis, Laura & Gosling, Jonathan & Naim, Mohamed M., 2014. "The development of a lean, agile and leagile supply network taxonomy based on differing types of flexibility," International Journal of Production Economics, Elsevier, vol. 151(C), pages 100-111.
    23. Fernando F. Suarez & Michael A. Cusumano & Charles H. Fine, 1996. "An Empirical Study of Manufacturing Flexibility in Printed Circuit Board Assembly," Operations Research, INFORMS, vol. 44(1), pages 223-240, February.
    24. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    25. Christopher P. Holland & A. Geoffrey Lockett, 1997. "Mixed Mode Network Structures: The Strategic Use of Electronic Communication by Organizations," Organization Science, INFORMS, vol. 8(5), pages 475-488, October.
    26. I. Nyoman Pujawan, 2004. "Assessing supply chain flexibility: a conceptual framework and case study," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 1(1), pages 79-97.
    27. Emma Brandon-Jones & Brian Squire & Yvonne G.T. Van Rossenberg, 2015. "The impact of supply base complexity on disruptions and performance: the moderating effects of slack and visibility," International Journal of Production Research, Taylor & Francis Journals, vol. 53(22), pages 6903-6918, November.
    28. Gosling, J. & Purvis, L. & Naim, M.M., 2010. "Supply chain flexibility as a determinant of supplier selection," International Journal of Production Economics, Elsevier, vol. 128(1), pages 11-21, November.
    29. Krishnan S. Anand & Manu Goyal, 2009. "Strategic Information Management Under Leakage in a Supply Chain," Management Science, INFORMS, vol. 55(3), pages 438-452, March.
    30. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    31. Paul M. Swamidass & William T. Newell, 1987. "Manufacturing Strategy, Environmental Uncertainty and Performance: A Path Analytic Model," Management Science, INFORMS, vol. 33(4), pages 509-524, April.
    32. Atul Kumar Tiwari & Anunay Tiwari & Cherian Samuel, 2015. "Supply chain flexibility: a comprehensive review," Management Research Review, Emerald Group Publishing Limited, vol. 38(7), pages 767-792, July.
    33. Kim, Minkyun & Chai, Sangmi, 2017. "The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective," International Journal of Production Economics, Elsevier, vol. 187(C), pages 42-52.
    34. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. ARAVAMUDHAN Varadaraj & SAI MOHANRAJ Prasanna & SENGODAN Ananth, 2022. "Implications Of Covid-19 On Textiles Industry In India - Discovering Issues And Challenges On Demand And Supply Sides," Eastern European Journal for Regional Studies (EEJRS), Center for Studies in European Integration (CSEI), Academy of Economic Studies of Moldova (ASEM), vol. 8(2), pages 18-29, December.
    2. Sheng Lu, 2022. "Explore U.S. Retailers’ Sourcing Strategies for Clothing Made from Recycled Textile Materials," Sustainability, MDPI, vol. 15(1), pages 1-13, December.
    3. Muhammad Irfan & Mingzheng Wang & Naeem Akhtar, 2019. "Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view," Operations Management Research, Springer, vol. 12(3), pages 113-128, December.
    4. Ramkumar, M. & Schoenherr, Tobias & Wagner, Stephan M. & Jenamani, Mamata, 2019. "Q-TAM: A quality technology acceptance model for predicting organizational buyers’ continuance intentions for e-procurement services," International Journal of Production Economics, Elsevier, vol. 216(C), pages 333-348.
    5. Zhen Zhang, 2024. "Exploring the green edge: the role of market orientation and knowledge management in achieving competitive advantage through creativity," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    6. Enrique, Daisy Valle & Lerman, Laura Visintainer & Sousa, Paulo Renato de & Benitez, Guilherme Brittes & Bigares Charrua Santos, Fernando M. & Frank, Alejandro G., 2022. "Being digital and flexible to navigate the storm: How digital transformation enhances supply chain flexibility in turbulent environments," International Journal of Production Economics, Elsevier, vol. 250(C).
    7. Barbara Buraczyńska & Dariusz Majerek, 2021. "E-Commerce Flexibility Measurement Model Based on Empirical Research of Polish Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 112-126.
    8. Amoako-Gyampah, Kwasi & Boakye, Kwabena Gyasi & Adaku, Ebenezer & Famiyeh, Samuel, 2019. "Supplier relationship management and firm performance in developing economies: A moderated mediation analysis of flexibility capability and ownership structure," International Journal of Production Economics, Elsevier, vol. 208(C), pages 160-170.
    9. Ghomi, Vahid & Gligor, David & Parast, Mahour & Shokoohyar, Sina & Esfahani, Mina Ghofrani, 2021. "Antecedents and consequences of customer flexibility: Establishing the link to firm competitive advantage," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Thomé, Antonio Márcio T. & Scavarda, Luiz Felipe & Pires, Sílvio R.I. & Ceryno, Paula & Klingebiel, Katja, 2014. "A multi-tier study on supply chain flexibility in the automotive industry," International Journal of Production Economics, Elsevier, vol. 158(C), pages 91-105.
    3. Tachizawa, Elcio M. & Gimenez, Cristina, 2010. "Supply flexibility strategies in Spanish firms: Results from a survey," International Journal of Production Economics, Elsevier, vol. 124(1), pages 214-224, March.
    4. Yu, Kangkang & Cadeaux, Jack & Luo, Ben Nanfeng, 2015. "Operational flexibility: Review and meta-analysis," International Journal of Production Economics, Elsevier, vol. 169(C), pages 190-202.
    5. Han, Jeong Hugh & Wang, Yingli & Naim, Mohamed, 2017. "Reconceptualization of information technology flexibility for supply chain management: An empirical study," International Journal of Production Economics, Elsevier, vol. 187(C), pages 196-215.
    6. Arsalan Zahid Piprani & Noor Ismawati Jaafar & Suhana Mohezar Ali & Muhammad Shujaat Mubarik & Muhammad Shahbaz, 2022. "Multi-dimensional supply chain flexibility and supply chain resilience: the role of supply chain risks exposure," Operations Management Research, Springer, vol. 15(1), pages 307-325, June.
    7. Jafari, Hamid & Eslami, Mohammad H. & Paulraj, Antony, 2022. "Postponement and logistics flexibility in retailing: The moderating role of logistics integration and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 243(C).
    8. Delic, Mia & Eyers, Daniel R., 2020. "The effect of additive manufacturing adoption on supply chain flexibility and performance: An empirical analysis from the automotive industry," International Journal of Production Economics, Elsevier, vol. 228(C).
    9. Enrique, Daisy Valle & Lerman, Laura Visintainer & Sousa, Paulo Renato de & Benitez, Guilherme Brittes & Bigares Charrua Santos, Fernando M. & Frank, Alejandro G., 2022. "Being digital and flexible to navigate the storm: How digital transformation enhances supply chain flexibility in turbulent environments," International Journal of Production Economics, Elsevier, vol. 250(C).
    10. 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.
    11. Sricharan Chirra & Dinesh Kumar, 2018. "Evaluation of Supply Chain Flexibility in Automobile Industry with Fuzzy DEMATEL Approach," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(4), pages 305-319, December.
    12. Seebacher, Gottfried & Winkler, Herwig, 2015. "A capability approach to evaluate supply chain flexibility," International Journal of Production Economics, Elsevier, vol. 167(C), pages 177-186.
    13. Siddharth Shankar Rai & Sunil Girib, 2019. "Assessment of supply chain agility in the Indian garment industry," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 9(10), pages 265-280, October.
    14. Steffen Maas & Tassilo Schuster & Evi Hartmann, 2018. "Stakeholder Pressures, Environmental Practice Adoption and Economic Performance in the German Third-party Logistics Industry—A Contingency Perspective," Journal of Business Economics, Springer, vol. 88(2), pages 167-201, February.
    15. Muhammad Irfan & Mingzheng Wang & Naeem Akhtar, 2019. "Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view," Operations Management Research, Springer, vol. 12(3), pages 113-128, December.
    16. Horn, Philipp & Scheffler, Paul & Schiele, Holger, 2014. "Internal integration as a pre-condition for external integration in global sourcing: A social capital perspective," International Journal of Production Economics, Elsevier, vol. 153(C), pages 54-65.
    17. Sebastian Goebel & Barbara E. Weißenberger, 2017. "The Relationship Between Informal Controls, Ethical Work Climates, and Organizational Performance," Journal of Business Ethics, Springer, vol. 141(3), pages 505-528, March.
    18. Khakdaman, Masoud & Rezaei, Jafar & Tavasszy, Lóránt, 2022. "Shippers’ willingness to use flexible transportation services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 160(C), pages 1-20.
    19. Allam Yousuf & Hossam Haddad & Miklos Pakurar & Serhii Kozlovskyi & Anastasiia Mohylova & Oksana Shlapak & Felfoldi Janos, 2019. "The Effect of Operational Flexibility on Performance: A Field Study on Small and Medium-sized Industrial Companies in Jordan," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(1), pages 47-60.
    20. Merschmann, Ulf & Thonemann, Ulrich W., 2011. "Supply chain flexibility, uncertainty and firm performance: An empirical analysis of German manufacturing firms," International Journal of Production Economics, Elsevier, vol. 130(1), pages 43-53, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:205:y:2018:i:c:p:329-341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.