The impact of operations and supply chain strategies on integration and performance

Abstract

This study aims to develop a comprehensive model that facilitates an understanding of relationships among operations strategies (OSs), supply chain strategies (SCSs), supply chain integration (SCI), and firm performance. It is a start to understand the role of operations strategies in supply chain design. We adopt structural equation modelling to test the relationships based on data collected from 604 Chinese manufacturers. The results show that a lean supply chain is appropriate for firms placing higher priorities on cost, quality and delivery strategies, while an agile supply chain is appropriate for firms competing on the flexibility strategy. Furthermore, both lean and agile SCSs require higher levels of SCI in terms of internal and external integration, but lean SCSs have a significantly higher impact on external integration than agile SCSs. The study refreshes the links between order winner/qualifier and supply chain strategies. Clear-cut differences exist concerning the role of operations strategy in supply chain management, indicating that appropriate supply chain design is very important for firms to achieve their operations objectives. This study contributes to a better understanding of the match between operations strategies and supply chain strategies, and offer a practical insights on investments in the development of supply chain integration.