Supplier flexibility and performance: an empirical research

Abstract

Purpose A literature review conducted for this study showed that although different aspects of supply chain flexibility have been studied, research on the factors affecting supplier flexibility and the impact of supplier flexibility on supplier performance are conspicuously absent. The present study aims to fill in this gap in the literature. Design/methodology/approach A quantitative research design was adopted. Data were collected from 119 manufacturing companies operating in Turkey and analyzed by structural equation modeling. Findings The findings show that supplier flexibility is associated with environmental uncertainty, relationships with the buyer and the quality of information shared between the buyer and the supplier, but not with the level of information shared between the buyer and the supplier. The findings also indicate that supplier flexibility affects supplier performance. Research limitations/implications The generalizability of the findings can be considered as a limitation. In the future, sector-based larger-scale studies are desirable. Also, data can be collected from both the main business and suppliers and findings may be compared. Practical implications The findings of this study help decision-makers to make more informed decisions about information exchange, supplier relationships and environmental uncertainties depending on the degree of flexibility that they request from their suppliers. Originality/value A literature review for this study indicated that there is a lack of research on the factors affecting supplier flexibility. Therefore, this research is expected to make an original contribution to the literature.