An empirical examination of the effects of the attributes of supply chain openness on organizational performance

The purpose of this paper is to empirically examine how different supply chain attributes as determinants of the openness of supply chain affect organizational performance (OP).

Data were collected from 259 supply chain executives in Pakistan. Structural equation modeling was used to test the hypotheses.

The findings indicate that organizations may take the selective view of their supply chains resulting in a varying focus on different SC attributes. The results show that though all identified supply chain attributes positively relate to OP, some attributes such as combined agility and cooperation among supply chain partners have a weak correlation coefficient. This indicates that overall the relative openness of supply chain among selected sample of Pakistani organizations is low.

Supply chain executives may not have a selective focus on some attributes; rather, they may consider to have a broader perspective drawing upon a wider range of supply chain attributes as identified in the current study. In order to remain competitive, Pakistani manufacturing organizations need to learn more about opening up their boundaries and enhance the openness of their supply chain.

The contribution of the current study is two folds. First, drawing upon the current literature, it proposes the instrument to measure the relative openness of supply chain. Second, it empirically tests the selected conceptual model which highlights the relevance of supply chain attributes and their role in the resulting relative degree of supply chain openness. The empirical examination of the selected conceptual model of supply chain openness tends to make contribution to the wider literature on supply chain management.