Agile supply chain management (ASCM): a management decision-making approach

Abstract

Purpose: The purpose of this paper is to determine agile supply chain management (ASCM) among SMEs in manufacturing-related services sector. The study propose that entrepreneurial orientation (EO), participative management style, supplier relations, resource management, just-in-time (JIT) methodology and technology utilization (TU) are several drivers of ASCM – an effective management decision-making approach. Design/methodology/approach: A total of 197 questionnaires were collected among SMEs to empirically test the proposed model. Structural equation modelling was employed using partial least squares approach to assess measurement and structural model for reflective and formative constructs. Findings: The results reveal that EO, supplier relations, resource management, JIT methodology and TU positively influence ASCM while participative management style is not a predictor towards an effective ASCM. Moreover, EO was found to be a second-order formative construct comprising of innovativeness, risk taking and proactiveness, and ASCM is a first-order formative construct. Originality/value: Prior literature regarding supply chain management (SCM) has focussed mainly on critical success factors of SCM and green SCM. Limited empirical studies have examined the influence of EO, participative management style, supplier relations, resource management, JIT methodology and TU on ASCM among SMEs in manufacturing-related services sector.