Retail Supply Chain Flexibility: The Mediating Role of Inter-organizational Learning Drivers

Abstract

The aim of this study is to develop and test an empirical framework to explain the mediating role of the drivers of interorganisational learning on supply chain flexibility and retail performance, drawing on the Relational view. First, we developed comprehensive and process-based measurement scales to appraise two forms of supply chain flexibility - configuration, and planning/control flexibility. Subsequently, the mediating role of the drivers of interorganisational learning – absorptive capacity, organizational interoperability, and transactive memory systems – and the interaction effect of the two forms of supply chain flexibility are examined. We surveyed 211 retail store managers and purchasing professionals in the UK. Using structural equation modeling, we validated a measurement model and tested four hypothesized causal relationships among the key constructs. We controlled for retailer size, duration of retailer-supplier relationships and retail market segmentation. Results showed that absorptive capacity, transactive memory systems and organizational interoperability, partially mediate the positive effect of configuration flexibility and planning and control flexibility on operational performance in big-middle and niche retailers. While the interaction effects between the two forms of supply chain flexibility on absorptive capacity was non-significant, we found significant interaction effects of configuration flexibility on the positive relationship between transactive memory systems and absorptive capacity on planning and control flexibility. Overall, this study highlights the multifaceted nature of supply chain flexibility from a retailer-supplier relationship perspective. Findings may inform retail managers on the use of interorganisational learning drivers as supplier selection criteria, in order to maximize operational performance.