The Lean Supply Chain Management response to technology uncertainty: consequences for operational performance and competitiveness

Abstract

Purpose – This study aims to analyze the Lean Supply Chain Management (LSCM) strategy’s role as a mechanism to address technology uncertainty and provide organizations with competitive advantage. Design/methodology/approach – An empirical study was conducted of 276 Spanish focal firms in industrial sectors that occupy an intermediate position in the supply chain to investigate the influence of technology uncertainty on LSCM implementation and the latter’s effect on operational performance and competitiveness. A covariance-based structural equation model (CB-SEM) was used to test three hypotheses. Findings – Technological uncertainty encourages progress in the implementation of lean throughout the supply chain and so is a mechanism that not only brings stability to the focal company but also improves its performance and puts it in a better competitive position. Practical implications – Managers are suggested to consider the strategic integration with supply chain partners and the establishment of long-term relationships based on trust and commitment advocated by LSCM to enhance organizations’ capabilities and effectively and flexibly respond to technological changes. Originality – This study focuses on the effects of environmental uncertainty on the supply chain. The past literature has focused on the behavior of individual firms to deal with uncertainty but this work shifts the level of analysis to the supply chain. Therefore, the strategic change to deal with what is happening in the environment is now switched to the supply chain level.