The Impact of Competitive Strategy and Supply Chain Strategy on Business Performance: The Role of Environmental Uncertainty
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AbstractThis article investigates the relationships among competitive strategy, supply chain strategy, and business performance while examining the moderating effect of environmental uncertainty. A total of 604 questionnaires were collected from three cities in China, and the statistical results show significant moderating effects of external environment on the relationships among competitive strategy, supply chain strategy, and business performance. Firms that primarily focus on a differentiation strategy emphasize an agile supply chain strategy. Cost leaders are inclined to implement both lean and agile supply chain strategies, but their emphasis on agile strategy is significantly greater in a volatile environment than in a stable environment. The choice of supply chain strategy does not appear to be an "either-or" decision and firms could adopt either a lean or an agile strategy, or both, depending on the environment. This article provides significant managerial implications for supply chain practitioners to co-align supply chain strategy and competitive strategy with the environment to improve performance.
All Author(s) ListQi YN, Zhao XD, Sheu CW
Journal nameDecision Sciences
Volume Number42
Issue Number2
PublisherWiley: 24 months
Pages371 - 389
LanguagesEnglish-United Kingdom
KeywordsCompetitive Strategy; Structural Equation Modeling; Supply Chain Design; Survey Research
Web of Science Subject CategoriesBusiness & Economics; Management; MANAGEMENT

Last updated on 2021-07-01 at 23:46