Building bridges in uncertain times: supply relationships, lean supply chain management, and performance

Abstract

Purpose. The purpose of this study is to examine how a focal firm’s supply relationships influence Lean Supply Chain Management (LSCM) implementation and its impact on operational performance. Design/methodology/approach. An empirical study of 285 Spanish focal firms has explored the relationships between supply uncertainty, strategic supplier performance, LSCM implementation, and operational performance. A structural equation model (SEM) was utilized to test four hypotheses. Findings. The results indicate that supply uncertainty and strategic supplier performance significantly impact on the decision to implement LSCM. The findings highlight the importance of strategic supplier performance for driving LSCM adoption. However, the study also suggests that LSCM implementation should be carefully considered in situations characterized by high supply uncertainty. Practical implications. The study suggests that enhancing LSCM implementation and improving performance from key suppliers are crucial factors in achieving favorable operational performance in focal firms. Practitioners receive guidance on aligning their supply relationships, considering contextual factors, and leveraging strategic supplier performance to drive effective LSCM implementation. Originality. This study offers novel insights by examining the antecedents to LSCM implementation from a contingency and relational perspective specifically focused on the context of supply relationships. This research contributes to the existing body of knowledge on supply chain management by shedding light on the interplay between supply uncertainty, strategic supplier performance, LSCM implementation, and operational performance.