The strategic fit between “competitive strategy” and “supply chain strategy” in Indian manufacturing industry: an empirical approach

Abstract

PurposeThis paper aims to explore the state of strategic fit between “competitive strategy” (CS) and “supply chain strategy” (SCS) in the Indian manufacturing industry by investigating the mediating role of supply chain strategy between competitive strategy and performance of company/supply chain.Design/methodology/approachThis aim is accomplished by using a survey questionnaire that was answered by 185 respondents from various sectors of Indian manufacturing industry. These sectors included automobile, electrical and electronics, process, machinery, textile, food, aviation and footwear sectors. The state of strategic fit is explored based on research framework of “matrix of strategic fit”.FindingsThe major findings revealed existence of a causal relationship between CS and SCS with CS as independent variable and SCS as dependent variable. It was also found that choice of CS and SCS affects business and supply chain performance. The other finding was establishment of the existence of strategic fit in Indian manufacturing industry, which was explained by analyzing the interaction effect between CS and SCS. It was also found that a major hurdle in implementing SCM practices in Indian manufacturing industry is “overcoming traditional practices”.Originality/valueIndian manufacturing industry is growing by leaps and bounds, but to date there is no study that has explored the mediation effect of supply chain strategy between competitive strategy and performance in India. This paper provides a research framework to study and assess these dimensions of strategy on “matrix of strategic fit”.