Product variety management and supply chain performance: A capability perspective on their relationships and competitiveness implications

Um, Juneho and Lyons, Andrew and Lam, K.S. and Cheng, T.C.E. and Dominguez-Pery, C (2017) Product variety management and supply chain performance: A capability perspective on their relationships and competitiveness implications. International Journal of Production Economics, 187. pp. 15-26. ISSN 0925-5273

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Abstract

We study 363 manufacturing businesses to investigate the relationships between product variety management
and supply chain performance. Applying the dynamic capabilities view of how businesses cope with changing
environments, we develop a conceptual model that links product variety management strategies with supply
chain responsiveness, and relates supply chain responsiveness to cost and customer service in high- and low customization environments. We find that a product variety management strategy influences both supply chain
cost and customer service performance only when mediated by internal and external responsiveness capabilities. In addition, a product variety management strategy has different impacts on performance depending on the level of product customization. Specifically, in a low-customization environment, both supply
chain flexibility and agility acting as dynamic capabilities have a significant influence on cost efficiency while in a high-customization environment, these dynamic capabilities have a significant influence on customer service.

Item Type: Article
Keywords: Product variety Supply chain performance Customization Dynamic capabilities Structural equation modelling
Faculty / Department: Faculty of Arts & Humanities > Business School
Depositing User: Juneho Um
Date Deposited: 04 Apr 2017 15:58
Last Modified: 04 Apr 2017 15:58
URI: https://hira.hope.ac.uk/id/eprint/1889

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