Decision Sciences Journal
Volume 29, Number 3
Summer 1998
Causal Linkages in Supply Chain Management: An Exploratory
Study of North American Manufacturing Firms
Ram Narasimhan and Jayanth Jayaram
Eli Broad School of Management, Michigan State University, N370
North Business Complex, East Lansing, MI 48824, email: narasimh@pilot.msu.edu
and jayaramm@pilot.msu.edu
Abstract: In this paper we investigate the key causal
linkages in supply chain management. We propose a conceptual
framework and test this framework on data from 215 North American
manufacturing firms using structural equation modeling techniques.
Three major research issues are addressed in this study: Do sourcing
decisions affect the degree to which firms achieve manufacturing
goals of cost, flexibility, dependability, and quality? Does
the degree of manufacturing goal achievement lead to higher customer
responsiveness? Does the degree of manufacturing goal achievement
lead to higher internal manufacturing performance? The study
examines the relationship among sourcing decisions, manufacturing
goals, customer responsiveness, and manufacturing performance.
The results support the notion that an integrated supply chain
involves aligning sourcing decisions to achieve manufacturing
goals that are set to respond favorably to the needs of customers.
Subject Areas: Production/Operations Management, Strategy
and Policy, and Structural Equation Modeling. |