A structural approach to assessing postponement strategies: construct development and validation

Abstract

This paper endeavours to introduce and validate constructs and measured variables for postponement strategies. Although empirical researchers have examined postponement, a consistent set of valid, reliable factors has not been developed and used. The lack of valid constructs is a barrier to hypothesis testing and meta-analysis on postponement. Using confirmatory factor analysis (CFA), the validity and reliability of the proposed postponement constructs are examined. This is performed through a pilot study and a large scale survey on a sample of 219 manufacturing firms which represent a wide range of manufacturing operations. The outcomes of this paper establish a set of variables which can measure shipment, manufacturing, purchasing and design postponements.

Keywords:

• postponement
• shipment postponement
• manufacturing postponement
• ordering/purchasing postponement
• design postponement
• measured variables

Acknowledgment

I would like to thank the anonymous reviewers of this paper for their valuable inputs and supportive comments.

Notes

Notes

1. LV: latent variable.

2. The International Standard of Industrial Classification of all economic activities.

3. The codes address manufacture of textiles, rubber and plastic products, other non-metallic mineral products, basic metals, Manufacture of fabricated metal products, except machinery and equipment, manufacture of electrical machinery and apparatus n.e.c., radio, television and communication equipment and apparatus, motor vehicles, trailers and semi-trailers, and manufacturing ISIC groups of products.

4. Follow ups are done six and 10 weeks after the initial submission.

5. Details of the questionnaire can be collected from the author.