Evaluation of factors affecting strategic supply chain network design

Abstract

The design of a supply chain network lies at the core of supply chain management, and it is affected by many variables corresponding to several factor groups. This study evaluated the importance of such influencing factors, namely, political and social characteristics, supply characteristics, product characteristics, demand characteristics, and service requirements, for evaluating strategic location alternatives in a supply chain system. A structural equation modelling approach was employed to analyse the effects of these factors. Results indicated that supply characteristics, product characteristics, demand characteristics, and service requirements positively affect strategic supply chain network design. The influence of the political and social factor group on strategic location alternatives was not supported in this study. Theoretical and managerial implications of the findings are discussed and potential research directions are proposed.