The impact of alignment between supply chain strategy and environmental uncertainty on SCM performance

Abstract

Purpose

The right supply chain (SC) strategy is widely believed to be able to improve supply chain management (SCM) performance. Ignoring the important concept of alignment means that failures in SCM resulting from a mismatch between two or more crucial factors remain common. Accordingly, Lee proposed an environmental uncertainty framework to devise the right SC strategy. However, the proposed framework has thus far remained conceptual. Therefore, this study seeks to empirically investigate Lee's uncertainty framework and examine how alignment between SC strategy and environmental uncertainty impacts perceived SCM performance.

Design/methodology/approach

A survey was designed and used to collect 243 usable responses from manufacturers. A profile deviation approach was applied to compute the alignment between SC strategy and environmental uncertainty.

Findings

The results of the study verify that the alignment between SC strategy and environmental uncertainty is positively associated with SCM performance.

Research limitations/implications

The data were collected from a cross‐sectional survey and represented a snapshot of practice. Replication from a longitudinal perspective would better reflect long‐term impacts of alignment on SCM performance.

Practical implications

Different SC strategies are appropriate for distinct environmental uncertainties. It is not enough to simply form an SC strategy for improving SCM performance without considering the alignment between SC strategies and environmental uncertainties.

Originality/value

The study empirically examines Lee's uncertainty framework, which has received considerable attention in relation to SCM, but has not previously been clearly verified. The study also develops the a priori theoretical profiles for SC strategies by using an integrated perspective that incorporates both manufacturing and information system capabilities.

Citation

Sun, S., Hsu, M. and Hwang, W. (2009), "The impact of alignment between supply chain strategy and environmental uncertainty on SCM performance", Supply Chain Management, Vol. 14 No. 3, pp. 201-212. https://doi.org/10.1108/13598540910954548