How does the technology environment impact supply chain strategy and operational performance?

Abstract

PurposeThis paper investigates the relationship between technological uncertainty and the use of Industry 4.0 (I4.0) technologies, and its impact on the implementation of agile and lean supply chain strategies. It also examines the effect of both of these supply chain strategies on focal firm operational performance in terms of efficiency in manufacturing processes and delivery performance.Design/methodology/approachSurvey data were gathered from 256 focal manufacturing companies in Spain using a structured questionnaire. Covariance-based structural equation modeling (CB-SEM) is used to test the conceptual model.FindingsUnderpinned by the Contingency Theory and the Resource Orchestration Theory, the results indicate that technology uncertainty has a strong association with I4.0 technology use. Furthermore, the use of I4.0 technologies facilitates the implementation of the lean supply chain strategy and the agile supply chain strategy. Focal firm operational performance was also observed to be affected by the two strategies in different ways.Originality/valueThis study extends the literature on operations management by studying the fit between the external environment and strategy by incorporating an in-between element: the use of I4.0 technologies. This research provides a unique empirical analysis of the role of technology uncertainty and integration between I4.0 technologies and supply chain strategies.