Assessing the effect of industry clockspeed on the supply chain management practice‐performance relationship

Abstract

PurposeThe purpose of this research is to examine the effect of industry clockspeed on the relationship between supply chain management (SCM) practices, from both upstream and downstream sides of the supply chain, and SCM performance.Design/methodology/approachThe study is based on a questionnaire sent to manufacturing companies in the Republic of Ireland. The relationships between the constructs are analysed through regression analysis.FindingsThe results suggest that the relationship between SCM practices and SCM performance is not monotonic across varying levels of industry clockspeed. Although mixed support was found for the hypothesized relationships, this research contributes considerably to the theoretical development of the contingency view in the SCM literature.Practical implicationsManagers should be aware that the rate of change in their industries can affect the way SCM practices across the supply chain impact on SCM performance.Originality/valueThe literature review has shown that empirical studies which address the relationship between SCM practices and SCM performance provide mixed results. One possible explanation lies in the contingency theory. This paper contributes to the theoretical development of the contingency view in the SCM literature by showing that industry clockspeed affects the way SCM practices impact on SCM performance.