Abstract
This study analyses the importance of lean supply chain strategy (SCS) and agile SCS in Indonesia’s bottled water industries, influencing the financial performance through mediating variables. Using the resource-based view (RBV) theory and relational view to investigate these relations, a series of hypotheses are developed, considering strategic supplier integration (SSI), strategic customer integration (SCI) as a mediator variable. The study analyses structural equation modeling (SEM) derived by observed data from 139 firms in Indonesia. The research analyzes how lean SCS and agility SCS on financial performance is affected by SSI and SCI. The paper supports the literature on lean SCS and agile SCS by theoretically elucidating and empirically revealing how SSI and SCI collaborating affect a positive relationship between lean SCS & agile SCS and financial performance.
Highlights
Linkages exist through various terrestrial regions, which influence the vulnerability of domestic industries to operational risk and encounter more significant necessity uncertainty
In a randomly selected manufacturing industry sample in Indonesia, we have used a list of 212 executives who have more than 100 employees and 1 USD million in annual sales revenue
Our finding shows that an agile supply chain strategy (SCS) has impacted strategic supplier integration, which increases financial performance
Summary
Linkages exist through various terrestrial regions, which influence the vulnerability of domestic industries to operational risk and encounter more significant necessity uncertainty. The JIT and Vendor-Management-Inventory (VMI) practices combine suppliers to decrease inventory costs by determining the quantity of each delivery of raw materials (Gharaei, Hoseini Shekarabi et al, 2019a). They include supplier machinery operators to increase the product’s consistency, resulting in the significant development of the cup, bottle, or gallon. In contrast to what consumers prefer, the firm must produce a flexible supply chain, i.e., quickly adapt to changes in the market and limited product life spans (Blome et al, 2013; Gligor et al, 2015). The agile supply chain strategy (SCS) is necessary for the quick launch of new products to respond to adapting consumer demands (Qi et al, 2011) and for an efficient response to adjustments in volume and speed delivery requirements (Yusuf et al, 2004)
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