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Impact of SCM Practices of A Firm on Supply Chain Responsiveness and Competitive Advantage of A Firm
The Journal of Applied Business Research – March/April 2013 Volume 29, Number 2
2013 The Clute Institute / 499
Impact Of SCM Practices Of A Firm
On Supply Chain Responsiveness
And Competitive Advantage Of A Firm
Ashish A. Thatte, Gonzaga University, USA
Subba S. Rao, University of Toledo, USA
T. S. Ragu-Nathan, University of Toledo, USA
ABSTRACT
Today’s supply chains are expected to respond rapidly, effectively, and efficiently to changes in
the marketplace to sustain, succeed and create competitive advantage in this increasingly global
marketplace by focusing on time, flexibility, and speed of response. The focus of this study is the
supply chain responsiveness construct and a firm’s practices to respond to customer’s demands
and constantly changing market conditions to create competitive advantage.
This research conceptualizes three dimensions of supply chain responsiveness and develops a
reliable and valid instrument for measuring this construct. The study further tests the relationships
between supply chain management (SCM) practices, supply chain responsiveness, and competitive
advantage using structural equation modeling based on 294 responses from industry professionals
in the manufacturing and supply chain area. Research findings point out that higher level of SCM
practices can lead to improved supply chain responsiveness and enhanced competitive advantage
of a firm. Also supply chain responsiveness can have a direct positive impact on competitive
advantage of a firm.
Keywords: Supply Chain Responsiveness; Supply Chain Management (SCM); Competitive Advantage; Structural
Equation Modeling
1. INTRODUCTION
he environment in which today’s manufacturing firms operate is characterized by growing world
competition and increasingly demanding customers (Rich and Hines, 1997). The new competitive
environment is more global, technologically oriented and customer driven, with shrinking product
life cycles, ever faster tim
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