Decision Sciences Journal 29(3) Index


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.

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