An Empirical Study to Understand the Effect of Supply Chain Agility on Organizational Operational Performance

Abstract

To bring agility in supply chain operations is a critical factor for firms in order to meet customers' requirements in an effective and productive manner. Several researchers have been argued that agility has become a prime driver of competitiveness. However, agility with respect to supply chain was not extensively studied, especially less attention was paid to empirical work. This article attempts to fulfill such need by investigating the relationship between supply chain agility (SCA) and organizational performance (OP) in the context of Iran. Primary data were collected through surveys distribution to 500 SC managers of all levels in Iranian SMEs. Subsequently, hypotheses were tested through SPSS and Structure Equation Modeling (SEM). The findings revealed a positive relationship between SCA and OP along with positive relationships of each dimension of SCA (e.g., alertness, decisiveness, flexibility, accessibility, and swiftness). This article ensures that organizational OP might be improved by focusing SCA in the today's competitive environment.