Decision Sciences Journal
Volume 30, Number 3
Summer 1999
An Empirical Investigation of the Contribution of Strategic
Sourcing to Manufacturing Flexibilities and Performance
Ram Narasimhan
Department of Marketing and Supply Chain Management, Eli Broad
Graduate School of Business, Michigan State University, East
Lansing, MI 48824
Ajay Das
Zicklin School of Business, Department of Management, Baruch
College, City University of New York, 17 Lexington Ave., New
York, NY 10010
ABSTRACT. Empirical studies for achieving manufacturing
flexibility goals have centered around the uses and advantages
of advanced technology. Few studies have examined alternative
ways of attaining flexibility objectives. Strategic sourcing
finds mention in the literature as a potential route to manufacturing
flexibility. However, little empirical evidence exists to validate
this view. Literature also describes manufacturing flexibility
as a multidimensional concept but fails to adequately examine
the synergies among the different dimensions. This research investigates
the influence of strategic sourcing and advanced manufacturing
technologies on specific manufacturing flexibilities, and examines
relationships among different flexibilities. The results are
tied to manufacturing cost reduction. The findings suggest that
strategic sourcing can assist in the achievement of modification
flexibilities. Volume and modification flexibility are found
to influence new product flexibility. Modification flexibility
is found to influence manufacturing cost reduction. The results
show that strategic sourcing can be used to target specific manufacturing
flexibilities and that interflexibility synergies need to be
considered while formulating flexibility-based manufacturing
strategies.
Subject Areas: Manufacturing Flexibility, Strategic
Sourcing, Structural Equation Modeling, and Supply Chain Management. |