Supply Chain Flexibility: An Empirical Study

Abstract

SUMMARY This article examines dimensions of supply chain flexibility and their relationships with environmental uncertainty, business performance, and functional interfaces. The findings indicate that volume flexibility and launch flexibility are key responses to marketing practices uncertainty and product uncertainty, respectively, in the highly cyclical furniture industry. Volume flexibility is also positively related to all measures of overall firm performance and highly related to market share and market share growth. Overall, excellent performers on supply chain flexibility are rewarded at the bottomline. However, performance with respect to volume, launch, and target market flexibilities has the widest ranging impact on financial and market performance.