The Mediation Role of Supply Chain Practices and Logistics Integration on the Effect of Lean Supply Chain Strategy on Operational Performance

Year 2023, Volume: 52 Issue: 1, 87 - 106, 30.05.2023

Elif Gilanlı , Onur Çetin

Abstract

Supply chain strategy is the determinant of supply chain management (SCM) and product flow efficiency in the market. Lean supply chain strategy (LSCS), which is based on lean practices in production and supply chain, is a strategy that aims to prevent waste and increase efficiency. Although some studies in the literature examine the relationship of many elements of supply chain management with supply chain performance (SCP), and others examine the correlation of many lean manufacturing elements with performance, studies examining the LSCS-SCP relationship is limited. In addition, the number of studies examining the relationship of LSCS with supply chain practices and logistics integration (LI), as well as the number of studies examining LSCS, supply chain practices, LI, and SCP is much more limited. The research aims to examine the effect of LSCS on the supply chain practices which consists of customer relations (CR) and strategic supplier relations (SSR) and the LI as well as, based on these variables, the effect of LSCS on SCP. Data were obtained from 294 companies in the manufacturing sector through questionnaires. A structural equation model, including LSCS, supply chain practices, LI, and SCP, was tested for the first time. In conclusion, the mediating effects of CR, SSR and LI was emphasized to be important in the impact of LSCS on SCP.

Keywords

Supply chain management, Structural eguation modeling, Supply chain strategy, Confirmatory factor analysis

References

• Acar, A. Z. (2010). Lojistik Yeteneklerin, Strateji-Performans İlişkisi Üzerindeki Rolü: KOBİ’ler Üzerinde Bir Saha Araştırması. Atatürk Üniversitesi İİBF Dergisi, 24(4), 1-21
• Agarwal, A., Ravi, S. & Tiwari M.K. (2006). Modelling the Metrics of Lean, Agile and Leagile Supply Cha- in: An ANP-Based Approach. European Journal of Operational Research, 173, 211-225
• Ahmad, N. & Saifudin, A. M. (2014). Supply Chain Management in Telecommunication Industry: The Me- diating Role of Logistics Integration. In the 4th International Conference on Technology and Operations Management Supply. Kuala Lumpur, Malaysia, 648–653
• Akçi, Y. (2012). Çevre Belirsizliği Altında, Rekabet Stratejleri İle Tedarik Zinciri Stratejilerinin Firma Per- formansına Etkisi: İmkb İmalat Sektörü Uygulaması. Doktora Tezi, Dumlupınar Üniversitesi Sosyal Bi- limler Enstitüsü, Kütahya
• Alshurideh, M., Alsharari, N. M. & Al Kurdi, B. (2019). Supply Chain Integration and Customer Relations- hip Management in the Airline Logistics. Theoretical Economics Letters, 9, 392-414
• Ambe, I. M. (2014). Alignment of Supply Chain Strategies and Practices Of Locally Made Vehicles In South Africa. International Business & Economics Research Journal, 13(3), 637-652
• Beamon, B.M., (1999). Measuring supply chain performance. International Journal of Operations & Pro- duction Management, 19 (3), 275–292
• Bhasin, S. & Burcher, P. (2006). Lean Viewed as A Philosophy. Journal of Manufacturing Technology Ma- nagement, 17(1), 56-72
• Child, D. (2006). The Essentials of Factor Analysis. Third Edition, London: Continuum
• Chopra, S. & Meindl, M. (2007). Supply Chain Management: Strategy, Planning, and Operation. Third Edition, New Jersey: Pearson Prentice Hall
• Çalışkan, A., Karacasulu, A. T. & Öztürkoğlu, Y. (2016). Hızlı Moda Markalarında Çevik ve Esnek Tedarik Zinciri Yönetimi. Manisa Celal Bayar Üniversitesi Sosyal Bilimler Dergisi, 14 (4), 49-74
• Çiçekdağı, M. (2019). Otel İşletmelerinde Gıda Lojistiği Ve Tedarik Zinciri Yönetimi Stratejileri: Bir Araş- tırma. Doktora Tezi, Selçuk Üniversitesi Sosyal Bilimler Enstitüsü, Kahramanmaraş
• Ellinger, A. E., Chen, H., Tian, Y. & Armstrong, C. (2015). Learning Orientation, Integration, and Supply Chain Risk Management in Chinese Manufacturing Firms. International Journal of Logistics: Research and Applications, 18(6), 476–493
• Flynn, B., Huo, B. & Zhao, X. (2010). The Impact of Supply Chain Integration on Performance: A Contin- gency and Configuration Approach. Journal of Operations Management, 28, 58-71
• George, D. & Mallery, P. (2016). IBM SPSS Statistics 23 Step by Step A Simple Guide and Reference. 14th edition, New York: Routledge
• Gharakhani, D., Mavi, R. K. & Hamidi, N. (2012). Impact of Supply Chain Management Practices on Inno- vation and Organizational Performance in Iranian Companies. African Journal of Business Management, 6(19), 5939-5949
• Gunasekaran, A., Patel, C. & Tirtiroglu E. (2001). Performance Measures and Metrics in a Supply Chain Environment, International Journal of Operations and Production Management, Vol. 21, No ½, 71-87.
• Hair, J. F., Hult, G. T. M., Ringle, C. M. & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Second Edition, USA: SAGE Publication
• Hooper, D., Coughlan J. & Mullen, M. (2008). Evaluation Model Fit: A Synthesis of the Structural Equation Modelling Literature. 7th European Conference on Research Methodology for Business and Management Studies. 19-20 June 2008, 195-200
• Jajja, M. S.S., Brah, S. A. & Hassan, S. Z. (2013). Supply chain strategy, core Operations and Performance: Learning from India and Pakistan. 44th Annual Meeting of Decision Sciences Institute, 1-7
• Kim, S. W. (2009). An Investigation on the Direct and Indirect Effect of Supply Chain Integration on Firm Performance. Int. J. Production Economics, 119, 328–346
• Kim, S. W. (2006). Effects of Supply Chain Management Practices, Integration and Competition Capability on Performance. Supply Chain Management: An International Journal, 11(3), 241–248
• Kline, P. (1994). An Easy Guide to Factor Analysis. New York: Routledge
• Kline, R. B. (2011). Principles and Practice of Structural Equation Modeling. Third Edition, New York: The Guiltford Press
• Konecka, S. (2010). Lean and Agile Supply Chain Management Concepts in the Aspect of Risk Manage- ment. Logforum. 6(4), 3, 23-31
• KOSGEB, https://www.kosgeb.gov.tr/Content/Upload/Dosya/kobi_tanimi.pdf, erişim tarihi 28.12.2021
• Krajewski, L., Ritzman, L. P. & Malhotra, M. K. (2013). Üretim Yönetimi Süreçler ve Tedarik Zincirleri.
• Ankara: Nobel Akademik Yayıncılık (Çeviri Editörü: Sema Birgün)
• Lambert, D. M. & Cooper M. C. (2000). Issues in Supply Chain Management. Industrial Marketing Mana- gement, 29(1), 65-83
• Li, S., Rao, S. S. Ragu-Nathan, T.S., & Ragu-Nathan, B. (2005). Development and validation of a measure- ment instrument for studying supply chain management practices. Journal of Operations Management, 23, 618–641
• Li, S., Ragu-Nathan, B., Ragu-Nathan, T.S. & Rao, S. S. (2006). The Impact of Supply Chain Management Practices on Competitive Advantage and Organizational Performance. Omega, 34, 107-124
• Li, G., Yang, H., Sun, L. & Sohal, A. S. (2009). The Impact of IT Implementation on Supply Chain Integra- tion and Performance. Int. J. Production Economics, 120, 125-138
• Malhotra, N.K. & Birks, D. F. (2000). Marketing Research An Applied Approach. European Edition, Pearson Education Limited
• Moshkdanian, F., & Author, C. (2013). Impact of Supply Chain Integration on the Performance of Bahman Group. Interdisciplinary Journal of Contemporary Research in Business, 5(1), 184–193
• Onay, M. & Kara, H. S. (2009). Lojistik Dış Kaynaklama Uygulamalarının Örgüt Performansı Üzerine Etki- leri. Ege Akademik Bakış Dergisi, 9(2), 593-622
• Osei, M. B. (2017). The Impact of Supply Chain Integration On Firm Performance: The Food Retail Sector In Turkey. Master Thesis, Anadolu University, Institute of Social Sciences, Eskişehir
• Othman, A. A., Yusoff, R.Z., Ismail, M.A. & Husin,R. (2012). Supply-Chain Strategy and Performance: Mediating Effect of Supply-Chain Practices. The 3rd International Conference on Technology and Ope- rations Management, “Sustaining Competitiveness through Green Technology Management, Bandung – Indonesia. July 4-6, 217-224
• Parast, M.M. & Spillan, J. E. (2014). Logistics and Supply Chain Process Integration as a Source of Com- petitive Advantage an Empirical Analysis. The International Journal of Logistics Management, 25(2), 289-314
• Prajogo, D & Olhager, J. (2012). Supply chain Integration and Performance: The Effects of Long-Term Rela- tionships, Information Technology and Sharing, and Logistics Integration. Int. J. Production Economics, 135, 514–522
• Qi, Y., Boyer, K. K. & Zhao, X.(2009). Supply Chain Strategy, Product Characteristics, and Performance Impact: Evidence from Chinese Manufacturers. Decision Sciences, 40(4), 667-695
• Qi, Y., Zhao, X. & Sheu, C. (2011). The Impact of Competitive Strategy and Supply Chain Strategy on Business Performance: The Role of Environmental Uncertainty. Decision Sciences Journal, 42(2), May 2011, 371-389
• Qi, Y., Huo, B., Wang, Z. & Yeung, H. Y. J. (2017). The Impact of Operations and Supply Chain Strategies on Integration and Performance. Int. J. Production Economics, 185, 162-174
• Qrunfleh, S. M. (2010). Alignment of Information Systems with Supply Chains: Impacts on Supply Chain Performance and Organizational Performance. Doctor of Degree, The University of Toledo
• Qrunfleh, S., Tarafdar, M. & Ragu-Nathan, T. S. (2012). Examining Alignment Between Supplier Manage- ment Practices and Information Systems Strategy. Benchmarking: An International Journal, 19 (4/5), 604-617
• Qrunfleh, S. & Tarafdar, M. (2013). Lean and Supply Chain Strategies and Supply Chain Responsiveness: The Role of Strategic Supplier Partnership and Postponement. Supply Chain Management: An Internati- onal Journal, 18 (6), 571-582
• Qrunfleh, S. & Tarafdar, M. (2014). Supply Chain Information Systems Strategy: Impacts on Supply Chain Performance and Firm Performance. Int. J. Production Economics, 147, 340-350
• Rahimnia, F., Keyvanipoor, P. & Moghadasian, M. (2014). Analysis of BSC Perspectives as Related to the Alignment of Environmental Uncertainty and Supply Chain Strategy. Benchmarking: An International Journal, 21(6), 903-916
• Ramana, V., Rao, K. N. & Kumar, J. S. (2016). A Critical Review on Supply Chain Strategies and their Per- formance. International Journal of Engineering Science and Computing, 6(5), 4525-4545
• Sharma, P. & Kulkarni, M. S. (2016). Bayesian Belief Network for Assessing Impact of Factors on Army’s Lean–Agile Replenishment System. J. Military Stud, 7(1), 11–23
• Stank, T. P., Keller, S. B. & Daugherty, P. J. (2001). Supply chain collaboration and logistical service perfor- mance. Journal of Business logistics, 22(1), 29-48
• Sukwadi, R., Wee, H. M. & Yang, C. C.(2013). Supply Chain Performance Based on the Lean–Agile Opera- tions and Supplier–Firm Partnership: An Empirical Study on the Garment Industry in Indonesia. Journal of Small Business Management, 51(2), 297–311
• Sun, S. Y., Hsu, M. H.& Hwang, W. J. (2009). The Impact of Alignment Between Supply Chain Strategy and Environmental Uncertainty on SCM Performance. Supply Chain Management: An International Journal, 14/3, 201–212
• Sundram, V. P. K., Ibrahim, A. R. & Govindaraju, V. G. R. (2011). Supply Chain Management Practices In the Electronics Industry in Malaysia Consequences for Supply Chain Performance. Benchmarking: An International Journal, 18(6), 834-855
• Tarafdar, M. & Qrunfleh, S. (2017). Agile Supply Chain Strategy and Supply Chain Performance: Comple- mentary Roles of Supply Chain Practices and Information Systems Capability for Agility. Int. J. Produc- tion Economics, 55(4), 925-938
• Terjesen, S., Patel, P. C. & Sanders, N. R. (2011). Managing Differentiation-Integration Duality in Supply Chain Integration. Decision Sciences, February 2011, 1-37
• Toker, K. & Pınar, R. İ. (2020). Entegre Tedarik Zincirlerinin İşletme Performansı Üzerindeki Etkisi. Hacet- tepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 38(4), 823-846
• Turan, H. & Turan, G. (2019). Enerji Yönetiminin Başarısında Yalın Altı Sigmanın Etkisi. Atlas Internatio- nal Refereed Journal on Social Sciences, 5(17), 112-121
• Waters, D. (2003). Logistics: an Introduction to Supply Chain Management. Gordonsville. VA, USA: Palg- rave Macmillan
• Van Hoek, R.I., (1998). Measuring the Unmeasurable-Measuring and Improving Performance in the Supply Chain. Journal of Supply Chain Management, 3 (4), 187–192
• Zhang, M. & Qi, Y. (2013). Impact of Supply Chain Strategy on Mass Customisation Implementation and Effectiveness: Evidence from China. Int. J. Information and Decision Sciences, 5(4), 393-413