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Product variety management and supply chain performance : A capability perspective on their relationships and competitiveness implications

Author

Listed:
  • Juneho Um

    (Liverpool Hope University)

  • Andrew Lyons

    (University of Liverpool)

  • Hugo K.S. Lam

    (University of Liverpool)

  • T.C.E. Cheng

    (POLYU - The Hong Kong Polytechnic University [Hong Kong])

  • Carine Dominguez-Pery

    (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

Abstract

We study 363 manufacturing businesses to investigate the relationships between product variety management and supply chain performance. Applying the dynamic capabilities view of how businesses cope with changing environments, we develop a conceptual model that links product variety management strategies with supply chain responsiveness, and relates supply chain responsiveness to cost and customer service in high- and low-customization environments. We find that a product variety management strategy influences both supply chain cost and customer service performance only when mediated by internal and external responsiveness capabilities. In addition, a product variety management strategy has different impacts on performance depending on the level of product customization. Specifically, in a low-customization environment, both supply chain flexibility and agility acting as dynamic capabilities have a significant influence on cost efficiency while in a high-customization environment, these dynamic capabilities have a significant influence on customer service.

Suggested Citation

  • Juneho Um & Andrew Lyons & Hugo K.S. Lam & T.C.E. Cheng & Carine Dominguez-Pery, 2017. "Product variety management and supply chain performance : A capability perspective on their relationships and competitiveness implications," Post-Print hal-01986046, HAL.
    • Handle: RePEc:hal:journl:hal-01986046
    DOI: 10.1016/j.ijpe.2017.02.005
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    Citations

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    Cited by:

    1. Chang Juck Suh & In Tae Lee, 2018. "An Empirical Study on the Manufacturing Firm’s Strategic Choice for Sustainability in SMEs," Sustainability, MDPI, vol. 10(2), pages 1-23, February.
    2. DeCampos, Hugo A. & Rosales, Claudia R. & Narayanan, Sriram, 2022. "Supply chain horizontal complexity and the moderating impact of inventory turns: A study of the automotive component industry," International Journal of Production Economics, Elsevier, vol. 245(C).
    3. Tolonen, Arto & Haapasalo, Harri & Harkonen, Janne & Verrollot, Jordan, 2017. "Supply chain capability creation – The creation of the supply chain readiness for a new product during product development process," International Journal of Production Economics, Elsevier, vol. 194(C), pages 237-245.
    4. Ortega-Jimenez, Cesar H. & Garrido-Vega, Pedro & Cruz Torres, Cristian Andrés, 2020. "Achieving plant responsiveness from reconfigurable technology: Intervening role of SCM," International Journal of Production Economics, Elsevier, vol. 219(C), pages 195-203.
    5. 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.
    6. Natalia Szozda & Artur Świerczek, 2022. "Upstream and downstream dyad governance within the network structures: Creating supply chain governance for the customized products," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 873-898, June.
    7. Lyons, Andrew Charles & Um, Juneho & Sharifi, Hossein, 2020. "Product variety, customisation and business process performance: A mixed-methods approach to understanding their relationships," International Journal of Production Economics, Elsevier, vol. 221(C).
    8. Lee, Neil Chueh-An, 2021. "Reconciling integration and reconfiguration management approaches in the supply chain," International Journal of Production Economics, Elsevier, vol. 242(C).
    9. Liu, Baolong & Wang, Weilong, 2023. "Live commerce retailing with online influencers: Two business models," International Journal of Production Economics, Elsevier, vol. 255(C).
    10. 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).

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