Demand management strategies role in sustainability of service industry and impacts performance of company: Using SEM approach

Abstract

This study explores the relationships between selected Supply Chain Risks (SCRs), use of Demand Management Strategies (DMS) in a sustainable service industry and impact on Company performance. An empirical framework proposed in which presence of SCRs influences use of DMS during peak and lean demand. The empirical tests using Structured Equation Modelling approach (SEM) is carried out based on data from survey of 439 services businesses in India covering 10 services industry groups. The results demonstrate contingent relationship between SCRs and company performance and use of DMS as mediator. Journal of Cleaner Production is a highly active journal in the area of sustainability. Therefore, articles from the Journal of Cleaner Production too have been considered for a justifiable emphasis on sustainability. The presence of demand variability risk influences the use of Demand Planning and Forecasting techniques and Controlling of customer arrival during peaks that enhances SC Competitive performance. Controlling customer arrival during peaks improves financial performance. Mismatch of Capacity against demand (unused capacity) leads to use of techniques influencing demand during lean periods which in turn improves performance of a sustainable SC, customer satisfaction, and financial performance. The results thereby contribute towards a sustainable supply chain and divulge in suggested opportunities for novel areas of research for the journal.