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Product variety management and supply chain performance: A capability perspective on their relationships and competitiveness implications

Um, Juneho and Lyons, Andrew and Lam, Hugo KS and Cheng, TCE and Dominguez-Pery, Carine (2017) 'Product variety management and supply chain performance: A capability perspective on their relationships and competitiveness implications.' International Journal of Production Economics, 187. 15 - 26. ISSN 0925-5273

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Abstract

We study 363 manufacturing businesses to investigate the relationships between product variety management and supply chain performance. Applying the dynamic capabilities view of how businesses cope with changing environments, we develop a conceptual model that links product variety management strategies with supply chain responsiveness, and relates supply chain responsiveness to cost and customer service in high- and low-customization environments. We find that a product variety management strategy influences both supply chain cost and customer service performance only when mediated by internal and external responsiveness capabilities. In addition, a product variety management strategy has different impacts on performance depending on the level of product customization. Specifically, in a low-customization environment, both supply chain flexibility and agility acting as dynamic capabilities have a significant influence on cost efficiency while in a high-customization environment, these dynamic capabilities have a significant influence on customer service.

Item Type: Article
Uncontrolled Keywords: Product variety, Supply chain performance, Customization, Dynamic capabilities, Structural equation modelling
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Elements
Date Deposited: 19 Mar 2019 16:03
Last Modified: 19 Mar 2019 16:15
URI: http://repository.essex.ac.uk/id/eprint/24106

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