Development and validation of an integrated supply chain operational performance model for Indian automobile industry

Abstract

In a fast paced world, organisations need to push and adapt themselves to meet global demands. Supply chain operational performance (SCOP) is a vital tool used to improve business performance. This study aims to investigate measurement, development and validation of a proposed SCOP model using structural equation modelling (SEM). It conceptualises and develops four vital dimensions of SCOP. Literature review reveals information integration (II), industry characteristics (IC), supplier initiative (SI) and supply chain collaborative advantage (SCCA). Data was collected from 306 operations and supply chain heads from the auto-sector. Results prove that II, SI, IC and SCCA were found to have positive effects on SCOP with significant second order construct relationships. The instrument will help supply chain in flexibility, cost control and improved quality.