Abstract

Todays supply chains are expected to respond rapidly, effectively, and efficiently to changes in the marketplace to sustain, succeed and create competitive advantage in this increasingly global marketplace by focusing on time, flexibility, and speed of response. The focus of this study is the supply chain responsiveness construct and a firms practices to respond to customers demands and constantly changing market conditions to create competitive advantage. This research conceptualizes three dimensions of supply chain responsiveness and develops a reliable and valid instrument for measuring this construct. The study further tests the relationships between supply chain management (SCM) practices, supply chain responsiveness, and competitive advantage using structural equation modeling based on 294 responses from industry professionals in the manufacturing and supply chain area. Research findings point out that higher level of SCM practices can lead to improved supply chain responsiveness and enhanced competitive advantage of a firm. Also supply chain responsiveness can have a direct positive impact on competitive advantage of a firm.

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