The Effects of Supply Chain Visibility, Supply Chain Flexibility, Supplier Development and Inventory Control Toward Supply Chain Effectiveness

Abstract

Purpose – The purpose of this study is to examine the significance of supply chain strategies – visibility and flexibility supply chain – as well as the supplier development and inventory control towards the supply chain effectiveness. Design/methodology/approach – Applying the strategic – choice theory and the resource – based view of firms to the supply chain, in this study a research model are developed to demonstrate the premise that implementing proper supply chain practices to support and execute supply chain strategy that will enhance the effectiveness of the supply chain. The study utilizes survey data from 100 senior executive and managers in the purchasing and supply chain functions from manufacturing firms in Malaysia. The results are based on regression analysis and equation modelling by using SPSS software. Findings – The study finds that all supply chain strategies, namely, supply chain visibility, supply chain flexibility, supplier development and inventory control have a positive relationship towards the supply chain effectiveness. Practical Implications – For supply chain practitioners, the results indicate that firms benefit greatly if they consider the strategies of their supply chain and that such a matching yield to improve the supply chain effectiveness. Originality/value – The paper theoretically develops logic and empirically shows that all of the supply chain strategies are appropriate practices for mediating the impact on supply chain effectiveness. Considered at a higher level of abstraction, there relationships indicate a contribution to theory that explains how supply chain strategy can result in supply chain effectiveness, through the concurrent deployment of appropriately matched supply chain practices.