Determining how internal and external process connectivity affect supply chain agility: a life-cycle theory perspective

Abstract

This paper examines how organizations connect internal and external processes to enable an agile response to continuous change. Drawing on life cycle theory, a hypothetical model is developed regarding the independent and combinative effects of internal and external process connectivity on supply chain agility and the moderating effect of product and supply complexity. The model is tested using hierarchical regression analysis based on survey data from 143 managers at German manufacturing firms. Our findings suggest that internal and external process connectivity have a positive effect on supply chain agility independently and collectively, with complexity having a moderating effect in particular instances. The findings build on prior research regarding the process-related enablers of supply chain agility; research that has yet to clearly differentiate between internal and external processes or uses the terms interchangeably. The theoretical contribution of the paper rests on its extension of life cycle theory to the supply chain.

Keywords:

• Supply chain agility
• process connectivity
• product complexity
• supply complexity
• life cycle theory

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Samuel Roscoe

Dr. Samuel Roscoe is a Lecturer in Operations Management at the University of Sussex. Samuel completed his Ph.D. at the University of Manchester on the topic of incremental and radical eco-innovation development in supply networks. He completed his MSc in Supply Chain Management at the Cranfield School of Management in 2010. Before joining academia, Samuel worked in the industry for 15 years in a variety of supply chain management roles. His most recent role was with Adidas where he was responsible for managing the company’s warehouse for the London 2012 Olympic Games. Prior to this role, Sam worked as a consultant on a large supply chain improvement project in Romania and as a logistician for Medecins Sans Frontieres (MSF) in Liberia.

Dominik Eckstein

Dr. Dominick Eckstein is a Senior Manager, Strategy and Organization at Porsche Consulting. Previously, Dominick worked as a Research Associate in the Operations and Supply Chain Management group at EBS Universität für Wirtschaft und Recht, where he also received his Doctorate degree.

Constantin Blome

Prof. Constantin Blome is Full Professor of Operations Management and Subject Group Lead of the Management & Organization Group at the University of Sussex. Prior to this role, Constantin was the GlaxoSmithKline Chaired Professor in Strategic Sourcing and Procurement at Universite Catholique de Louvain, Belgium. He has also taught at several international institutions including M.I.T. (visiting scholar), EBS Business School (assistant professor of sourcing in emerging markets), Indian Institute of Management Bangalore (research fellow), Michigan State University (visiting scholar). Constantin studied at the University of Bielefeld and Technical University of Berlin (M.Sc. and Ph.D.) and finished his habilitation at EBS Business School, Germany. Constantin’s research interests include supply chain management, procurement and operations management with a strong focus on sustainability, innovation and risk issues.

Matthias Goellner

Matthias Gollner works as an Account Director – Financial Services at Hootsuite, London, UK. Previously, Matthias worked as a Research Associate in the Operations and Supply Chain Management group at EBS Universität für Wirtschaft und Recht, where he also received his Doctorate degree (Summa cum Laude).