UNRAVELING THE BLACK BOX OF SUPPLY CHAIN FLEXIBILITY IN LEAN PRODUCTION ENVIRONMENTS

Abstract

Abstract Purpose This study aims to examine the full mediating role of supply chain flexibility (SCF) between lean production (LP) and business performance (BP) found in the previous literature. This effect negates the direct LP-BP effect (the so-called “total eclipse effect”). The authors analyze the individual contributions that the different SCF dimensions (sourcing flexibility; operating system flexibility, distribution flexibility and information system [IS] flexibility) make to the “total eclipse effect” between LP and BP produced by SCF. The relational resources-based view and resource orchestration theory are used to support the theoretical framework.

Design/methodology/approach Covariance-based structural equations modeling (CB-SEM) is used to test the SCF LP-BP total eclipse hypothesis and four additional mediation hypotheses, one for each of the SCF dimensions. Data obtained via a questionnaire given to 260 companies are analyzed with CB-SEM, and SPSS Process is used to evaluate the mediation effect.

Findings Research results indicate that only one of the dimensions (operating system flexibility) has a full mediation effect between LP and BP and is, therefore, the main contributor to the eclipse effect. Two other dimensions (sourcing flexibility and distribution flexibility) have partial mediation effects, so they also contribute to developing the eclipse effect, although to a lesser extent. Finally, IS flexibility is neither a full nor a partial mediation factor and does not contribute to the eclipse effect.

Originality/value These findings have some important implications. For academia, they generate new knowledge of the role that each of the SCF dimensions or components plays in the LP-BP relationship. For company management, the findings offer supply chain managers specific information on the individual effects that the different types of SCF flexibility have between LP and BP. This will allow companies to target their efforts to develop certain types of flexibility in LP contexts depending on the outcomes that senior managers want to achieve with their SCs.