The Effects of Supply Chain Strategies on Supply Chain Performance of Malaysian Manufacturing Companies with Moderation of Six Sigma and Lean Production
Ahmad Jafarnejad, Amir Rokhi, Amir Kargar, Soltan Abad, Sam Khoury, Kouroush Jenab
2017
Business Management Dynamics
unpublished
Since researchers and practitioners alike have focused on the importance of superior supply chain performance, this study examined which supply chain strategies are more likely to enable manufacturers achieve superior supply chain performance, and whether lean production and Six Sigma can play a moderating role and leverage the effects of mentioned strategies on supply chain performance. This research is a descriptive exploratory project in which primary data was collected from 80 Malaysian
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... facturing companies. Data were analyzed by applying bivariate correlation and multiple regressions and indicated that two strategies (many suppliers and few suppliers) can have positive and strong effects on achieving superior supply chain performance, but vertical integration strategy. In addition, outputs show that lean and Six Sigma can be considered as a strong moderator just for improving the impact of vertical integration on superior supply chain performance. INTRODUCTION Due to the fact that there is a strong rivalry between supply chains instead of companies, and no one have been studied the effects of supply chain strategies on supply chain performance in presence of six sigma and lean, this research was conducted. In deed, no research has been found that even consider the impact of the strategies on supply chain performance without any moderating variables like six sigma and lean as two of the most helpful and applicable methods. However, no previous study attempts to empirically demonstrate the relationship among supply chain strategy, supplier-firm partnerships, supply chain, and SME performance (Sukwadi et al., 2013). Later on, Singh et al. (2015) stated to date, previous studies have not been able to reveal the performance differences as they relate to the various supply chain strategy models that organizations apply. So this research model was developed applying four of the most significant concepts, supply chain performance, supply chain strategies, six sigma, and lean production. These days, one of the most important debates among scientist and practitioners is evaluating organizations' supply chain performance. Olfat et al. (2012) stated that three main levels of performance should be evaluated: Strategic, Process, and Implementation, in which the effect of strategic level (0.98) would be more significant. In addition, financial, knowledge, responsiveness, and cooperation are some helpful factors for assessing every mentioned level. Informing, steering, and controlling are three basic indicators for measuring supply chain performance (Jafarnejad et al., 2015). Supply chain strategies should be considered as one of the most important drivers of supply chain performance and companies' success. Supply chain strategy includes all activities and cultures of the members are operating within a supply chain and should be followed by every organization competitive strategy. In order to being successful, every organization's competitive and supply chain strategies should be matched (Jafarnejad et al., 2015). Both scientists and practitioners have been focusing on Six Sigma for many years to allow companies to be perpetually successful. Firstly, it was implemented by Motorola in the 1980s. Motorola itself reports over $17 billion in saving from implementing Six Sigma (Beckman & Rosenfield, 2008). Then, Toyota developed and applied Six Sigma. The purpose of Six Sigma is to reduce cost by reducing variability in the processes, which leads to decreased defects (Naslund, 2008).
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