CHAPTER 2 REVIEW OF LITERATURE AND CONCEPTUAL MODEL 2.1 INTRODUCTION This chapter aims to provide a brief idea on the existing literature that

Transcription

1 CHAPTER 2 REVIEW OF LITERATURE AND CONCEPTUAL MODEL 2.1 INTRODUCTION This chapter aims to provide a brief idea on the existing literature that supports the proposed conceptual model, framed for this research work. It also helps in understanding the theoretical basis and to present the various viewpoints offered by different research studies. The concept of survival by isolation no longer works between suppliers and the other entities of the supply chain (Stock, 2009). Hence organizations nowadays tend to move away from the isolation paradigm and look at developing partnerships and effective information sharing between the various trade partners which thereby makes their process become interconnected and overcomes the traditional limitations set by the firm (Cousins et al., 2005). Various viewpoints and definitions have been provided about supply chain. For example, SCM is defined as set approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements (Simchi-Levi et al., 2008). This chapter attempts to critically review the literature on SCM components and. 65 research papers published in international reputed journals on operations and supply chain have been thoroughly analysed and an effort has been made to gain key insights on impact of SCM dimensions on. The issues addressed here are explored under the two categories of supply chain and. Based on the review of literature, key dimensions or constructs and hypotheses have been formulated. 2.2 REVIEW METHODOLOGY The motive behind the literature review is to collect and generate structure reference related to the research problem from research articles, books and other reliable and valid sources of information which have published in recent past. Various articles have been published in the recent past in reputed journals which have relationship with 10

2 the proposed research work. For example, Li et al (2005), Chow et al (2006), Cohen and Mallik (1997), Larry et al (2008), Ballou (2007) and Tan (2002) have provided a strong base for this present research work. Research articles were downloaded from databases like Emeraldinsight, Elsevier s Science Direct, EBSCO,Proquest, Sage, Springer, Taylor and Francis and Wiley. Primarily, article search was processed based on the key words SCM and. Most of the papers reviewed, supported marginally the current research work. However, to make the review more brief and inclusive, analysis was conducted on those articles which provided suitable answers to the following questions: 1. Does the research article depict the understanding of SCM dimensions and? 2. Has the paper endeavoured to analyse the direct and indirect relationship among supply chain practices, concerns, competence on supply chain and of manufacturing firms? The forthcoming paragraphs presents the operational definitions, literature support and various linkages among supply chain components, supply chain and Supply Chain Practices practices provides a framework of methods and practices that help an organization in effectively integrating various stake-holders of Supply Chain Management namely, suppliers, manufacturers, distributors and customers, thereby resulting in the long run progress of the organization and their overall (Stock and Boyer, 2009). The best Supply Chain Practices help an organization in depicting a distinct picture based on various market indicators such as demand forecasting, product availability, inventory and distribution (Sunil Chopra and Meindl, 2005). Hence it is not surprising that best supply chain practices driven organizations achieve superior supply chain. However, it has been well established that internal and external cross functional collaboration of suppliers and customers direct to superior (Thakkar et al., 2008). 11

3 practice is defined as a Set of activities aimed at improving the of the whole supply chain (Tan, 2002, Chow, 2008 and Koh et al., 2007.) Kannana and Tan (2005) identified important dimensions of supply chain which address the different dimensions namely quality, supply chain practices and some specific elements like just in time capabilities. Li et al (2006) have validated three dimensions of supply chain practices namely supply chain planning, JIT production and delivery practices. Rajashekhar and Devi (2007) studied the Supply Chain Processes of processing industries, and concluded that the existing strategy of the enterprises in this industry should be modified to suitably cope up with SC partners, in order to provide better service and gain competitive advantage. The firms should involve all entities of their supply chain and implement proper measurement system to attain superior in supply chain. Cook et al (2010) have propagated various factors of supply chain practices such as material and supply, operations efficiency, customer service and information sharing. They have also pointed out that various components must work in tandem with each other to effectively achieve superior supply chain position. Sahay and Mohan (2003) pointed out that there are crucial supply chain practices encompassing the strategy, integration, inventory and information technology. Due to the lack of consensus about common supply chain practices and various priorities on supply chain practices in various literature, this research work intends to focus and identify the commonalities among these practices used currently and providing a frame work for improving the supply chain and ultimately better. The commonalities of supply chain practices found in the work of Koh et al (2007) have been used in the proposed research work Supply Chain Concerns An important element of effective SCM includes downstream integration and upstream collaboration of firm s partners and customers in effective and efficient manner. However, integration and collaboration of the entire value chain mechanism will be a complicated process. Firms may have to confront complex issues because of excessive dependence on suppliers and this may affect their focus on core capabilities 12

4 (McMullan, 1996). Conversely, companies which have developed and implemented supplier evaluation system in order to effectively and efficiently manage suppliers, have failed miserably(sachan and Datta, 2005). Stank et al., (2011) have developed set of issues will adversely affect of supply chain and firms should focus their attention on these issues to align goal with SCM goal. Similarly, some other supply chain concerns have been explored and presented in the research work of Chow et al (2008). concerns has been defined as The issues that prevent an organization from achieving the full potential of their supply chain (Tan, 2002; and Chow et al., 2008). Tan (2002) has identified a list of supply chain issues through expert s opinion that exert an impact on supply chain and. The variables used by this researcher have been utilized in this research to measure the supply chain concerns of the manufacturing enterprises Supply Chain Competence competence is a necessary pre-requisite for firms to react to market and financial uncertainties and to manage and sustain their supply chain and (Gubi et al., 2003). SCM is literally stable only when it is completely endorsed by stakeholders of the organization. competences are the ability of the organization to be in total power and control of supply chain operations and in spite of issues of external and internal environmental factors. As noted by Yang and Su (2009) and Sauber et al (2008), core competency of organizations is a reflection of the collective learning of the organization over a period of time and their ability to coordinate the diverse skills through an efficient full proof technical system. Larson and Halldorsson (2002) put forth the argument that an organization in today s business environment is driven by four major factors of forecasting, planning of inventory, supply chain efficiency and information accuracy. Effective of these factors will help the firm to distribute the product or service to their customer at the right time, place and price in effective and efficient manner. Spekman et al (2002) and Cigolini et al (2004) suggested that supply chain competence should also comprise of 13

5 planning of supply chain, in order, service fulfilment and procurement of raw material in effective manner. competence has been defined as A portfolio of, managerial, technical and strategic capabilities and skills developed by enterprises over time (Tracey et al., 2005; Wong et al.,2011 and Chow et al., 2008) Supply Chain Performance has been evaluated by different researchers in different manner to assist firms in measuring their supply chain. The supply chain council (SCC) framed the Supply-Chain Operations References (SCOR) model. The model provided a unified process oriented approach of communicating among the different supply chain partners in various decision areas like planning, sourcing, making, and delivering (Gunasekaran et al., 2004). Most firms lack a clear vision to develop efficient metrics for supply chain (Shepherd and Gunter, 2005). Furthermore, Olugu and Wong, 2009 pointed out a number of problems in the metrics used to measure the supply chain, and hence they propagated the argument that measurement of supply chain is very fragmented within and across the organizations. Sukati et al (2012) argued that validating the supply chain should include three different types of measurement of Resources measurement (how well the resource is sourced), Output measurement (how well it delivers value to the consumer), and Flexibility (how flexible is the system to external uncertainties). Each of these types is equally important in measuring the supply chain of manufacturing firms. In spite of a vast wealth of information available on the different ways to measure the supply chain of manufacturing undertakings, researchers still point out the need for continued studies in this area because of lack of clarity and comprehensive measurement of supply chain for all situations (Qrunfleh and Tarafdar, 2012 and Bhagwat and Sharma, 2007). Performance has been defined as The overall efficiency and effectiveness of SCM (Gunasekaran et al., 2003; Bhatnagar and Sohal, 2008; Vijayasarathy, 2010; and Trkman et al., 2010). 14

6 Lockamy and McCormack (2004) have indicated that manufacturing firms can be distinctively classified based on their supply chain measures that help the manufacturing undertakings to be distinct from the more contemporary non-cost metrics. They propagated that strong integration between the supply chain measurement systems and manufacturing system is absolutely indispensable. According to Bhatnagar and Sohal (2008) research shows that no single list of metrics that would utilized for evaluate and measuring the supply chain in generic situation in manufacturing system. So, they have utilized the most commonly used supply chain variable in their research study based on the available literature review in light of supply chain measures. The proposed research has also utilized the same variables to measure the supply chain of manufacturing enterprises. Based on an extensive literature review, it can be observed that a gap exist on studying the linkage among supply chain components, supply chain and. It can also be noted that a very limited effort has been made to empirically analyse and validate existence of relationship among supply chain and Organizational Performance No standardized definition has been arrived about by researchers (Ou et al., 2010). Some authors have measured the of manufacturing enterprises using accounting data like Return on Investment (Hsu et al., 2007), while some authors have used marketing indicators like product quality and new product development (Lin et al., 2004). Consequently, Li et al (2006) used in their empirical research work, financial s of firms in addition to non-financial indicators for measuring. In a study conducted by Kristal et al (2010), the authors presented an argument of economist for not using financial data to assess. They argue that shall determine through financial data, which actually reflects the value of securities of the firm, which will have a bearing on the firm s value. 15

7 However, measurement of of firms using accounting data does not consider the cash flows likely to be generated by the enterprise and future of the firm. Organizational Performance has been defined as How well a firm achieves its market oriented goals as well its financial goals (Hsu et al., 2009; Deshpande,2012; Kannana and Tan, 2004; Tan et al. 1998). With regards to financial goals, Yang and Su (2009) have propagated eighteen accounting variables to measure the of manufacturing enterprises. Some of such variables are ROI, market share, inventory turnover, ROA, etc. Many further studies have utilized these variables to measure the of manufacturing enterprises. Tan (2002) examined, in his research work, the effect of supply chain practices on using perceptual data. Tan et al (1998) have studied the impact of quality of supply chain on of manufacturing firms. They have collected data about of the manufacturing enterprises from executives of each of the enterprise in comparison with the of their competitors and their research variables have been used for measuring the of manufacturing industries in the proposed research work. 16

8 2.3 LITERATURE REVIEW SUMMARY Table 2.1 Summary of Literature Review 1 Ballou (2007) To outline the developments in the logistics and SCM research Listed out notable events, views of the subject experts and assess the nature of SCM scope for SCM research is wider 2 Bayraktar et al (2009) 3 Bhagwat and Sharma(2007) 4 Bhatnagar and Sohal(2005) To empirically study the causal effect of information systems and SCM on operational To frame SCM measures and assess the activities of business operations To explore the effect of location choices in the contest of global supply chain. practices, information systems and operational Plant location, supply chain uncertainty, manufacturing practices, supply chain Primary data collected using questionnaire, 203 sample from manufacturing industries located in Turkey and conceptual model tested using SEM Literature review of supply chain measures was supported through three case studies Empirical survey in developed country and data analyzed using regression model The nature of the logistics and supply chain has bringing new challenges and opportunities to researchers and practitioners of SCM and practices have positive impact on operational and moderating relationship of SCM information systems on SCM practices and operational measures have reviewed and categories into four different perspectives and that will help practitioners to assess the supply chain in a balanced manner for all business types. Proper location decision create variety of out comes that help a company to be good in supply chain competitiveness. 17

9 5 Burgess et al (2006) 6 Chen and Paulraj(2004) 7 Chow et al(2008) 8 Cigolini et al(2004) To study the emerging perspective of supply chain. To classify and summaries different supply chain factors to evaluated the importance of SCM constructs To study the impact of supply chain components on business To explore the SCM through operational perspective practices, supply chain concerns, supply chain competence and overall 100 reputed journal articles were reviewed and systematically analyzed and presented key insights Critically reviewed around 400 research articles and summarized the work from various SCM related disciplines. Data collected by perceptions of middle-line executives who is working in US and Taiwan manufacturing Industries on SC components and variables and proposed model was tested using SEM Content analysis presents a set of research methods and supporting resources that can be used to analyze and explain SCM concept Subject experts argue that possession of the SC field and contextual focus is generally on the manufacturing industry and research methodology are typically on conceptual, empirical and case research studies oriented. Reliable and valid instruments that can be applied in diverse contexts to assess the concept and to test different theoretical models and that pave the way for theory building and development in the area of supply chain competencies have positive impact on business, practices have effect on business and supply chain practices and competencies are associated in manufacturing industries located in both US and Taiwan. New techniques suggested to provide a normative device to determine the supply chain strategies and novel research design to support the academician and practitioners of SCM 18

10 9 Cook et al (2010) To explore the relationship among supply chain practices and practices and Regression analysis was applied to the collected data from manufacturing Industries organization. 10 Cousins et al (2006) To explore SCM in emerging academic discipline 11 Croom et al(2000) To review the literature on supply chain and propose theoretical debate 12 Deshpande(2011) Literature review on supply chain dimensions, supply chain and 13 Ellinger et al (2012) To find out relationship among supply chain competence and dimensions, supply chain and competence and Review of literature. Assessing the large pool of publications on supply chain and classified based on content and methodology To review the existing literature and developed a conceptual model competence model developed based on economic value added metric Results indicated that supply chain function of any company to be in specific that will improve of the Results may create a debate on nature and progress of SCM and in depth research is going on around the world Outcomes indicated that there is a need for research to be receptive of complementary work on supply chain and lack of theoretical work when compare to empirical research work. Results show the possible linkage of supply chain dimension on supply chain and linkage of supply chain and. competence shows higher impact on customer satisfaction and shareholder value 19

11 14 Gripsrud et al To explore and discuss the Literature review To combine the area of business logistics (2006) theoretical framework of and marketing channel because they focus 15 Gubi et al(2003) 16 Gunasekaran et al (2004) 17 Gupta et al(2006) distribution system To review the 75 doctoral thesis on logistics and supply chain from 1990 to 2001 To develop a model to enhance the understanding of the SCM measurement To review the 150 research published research articles in production and operations related journals Operations related variables Classified 75 doctoral thesis based on main themes and suggested for further research Empirical study using questionnaire and data were collected from the companies located in British Assessed the variety of articles in terms of the objective, data collection methods, and statistical tools used on same functions of supply chain. Result shows that in the early hour s dissertations studied on internal prospective and research trend is moves to supply chain networks and suggested to improve time frame, scope, focus on methods and theories and outline various research approaches Innovative attempts are required to develop new metrics and to evaluate the of the firm as a whole and also should evaluate the of each of the firm entity in the supply chain Finding shows that approximately all of the research articles were conducted the research based on surveys and case studies method. 20

12 18 Hsu et al (2007) To study SCM practice intervene the relationship of operations capability and firm Operations capability, SCM practices and firm Survey instrument used for data collection and hypotheses tested using SEM. 19 Huo (2012) To investigate the effect of supply chain integration on capability and 20 Jabbour et al (2011) Empirical study on measuring the supply chain practices 21 Kannan and Tan (2004) To find out the linkage among total quality, and supply chain practices and its effect on integration, capability and practices Quality, supply chain practices and 21 Sample collected from 617 companies located in China and tested the conceptual model using SEM Primary data collected from 107 Brazilian industries. SEM was applied to verify factors reliability and validity and tested the proposed conceptual framework Primary data collected using a questionnaire and tested with the sample of 556 manufacturing industries operating in United State Finding depicts that there is direct impact of capability and SCM practices on firm integration having direct and indirect effect on capability and supply chain integration act as mediating effect on Reduced four construct of supply chain practices with good validity and reliability and having positive association among supply chain dimensions Finding shows the linkage among quality, supply chain practices and are vary with operational, tactical and strategic level in the organization

13 22 Koh et al (2007) 23 Koh et al (2006) To study the effect of supply chain practice on of SMEs in Turkey To explore the SCM and ERP systems integration to create supply chain competitive SCM practices, operational, and Enterprise Resource Planning Data gathered using a self-administered questionnaire from the manufacturing sectors located in Turkey Case study method is adopted among paper based industry in china and primary data collected through interview method from the executives of the company Finding depicts that high levels of SCM practices have an impact on functional and business. Finding depicts that company should avoid decentralised policy and company should introduce supply chain integration plan for cost reduction, improve responsiveness and efficiency of supply chain 24 Krause (1997) To study the existing practices and outcomes of supplier development 25 Larry et al(2008) To review decade of SCM research on current developments and gap in the literature concerns Survey on supplier development from executives of both manufacturing and service industries Content analysis done on 405 research articles, examined nature of research, sampling method and research methods employed Finding shows that buying company should adopt and engage in various supplier development processes Finding shows that most of the research studies in SCM shows that there is a gap and research needed to seeks to explore the nature of dimensions of SCM and 22

14 26 Larson and Survey of SCM educators Halldorsson(2002) To provides new insight on the growth and emergence of the SCM 27 Lee et al (2011) To investigate the relationship between supply chain innovation and 28 Li et al (2006) To test the effect of supply chain practices on competitive advantage and 29 Li et al (2005) Validation and purification of instrument to measure the supply chain practices innovation and practices, competitive advantage and practices and measures A research model was examined using SEM through sample of 243 hospitals in South Korea. Instrument development and purification process of supply chain practices and tested hypotheses using SEM framework Scale development, empirical purification, validation, assessment of content and construct validity Finding depicts that SCM is a relatively novel phenomenon with imprecise boundaries so need for more case study type research than surveys type research. Result shows that is significantly and positively associated with SC innovation Finding shows that firm with high supply chain practices have significantly impact of competitive advantage and. Finding depicts that supply chain practices have positive relationship on measures 23

15 30 Lin et al (2004) To study the effect of quality and supplier participation on 31 Lockamy III and McCormack(2004) To find out relationship among supply chain practices and supply chain 32 McMullan (1996) To examine supply chain practices in the Asia Pacific region. 33 Min and Mentzer(2004) To develop and measure the supply chain concepts Quality practices, supplier participation and practices and supply chain practices Empirical survey of manufacturing industries and SEM was applied to test conceptual model. 55 sample were collected using a questionnaire from manufacturing industries located in US Survey was conducted among the companies located in the Asia Pacific region and sample consist of 43 manufacturing firms Survey method used to collect data for the scale validation and purification Quality having high correlation with supplier participation and both these factor having positive effect on of Taiwan and Hong Kong manufacturing industries Finding depicts that planning process and collaboration are important factor for supply chain planning and effect of supply chain practices on SC is positive Results show that maintain the competitive advantage, companies must improve their capability in planning and control the exchange of products, finance and sharing information in the entities of supply chain by integrating the entire process Measurement items developed having good validity and reliability 24

16 34 Olugu and Wong(2009) To explore the supply chain trends and challenges 35 Ou et al (2010) To study the impact of supply chain practices on firm 36 Parkan and Dubey(2009) 37 Qrunfleh and Tarafdar (2012) To study the recent trend and growth of the SCM practices in India To find out the impact of supply chain information strategy on supply chain in turn on firm practices and practices information strategy, supply chain and firm Literature reviews on supply chain measurement Sample collected from Taiwan manufacturing industries and SEM applied to examine the proposed model Recent trends and growth of SC by studied over one and half year of secondary data and structured interview with practitioners Sample data collected through questionnaire of 205 manufacturing firms and hypotheses were tested using SEM Result depicts that supply chain measurement area is not fully studied and fuzzy logic method can apply in SC measure. practices having positive effect on firm and it will indirectly impact on financial and customer value. Result indicates that industry in Indian is good particularly auto sector and in very strong development path and also argues that there is need for modernization of logistics and supply chain particularly warehouse and transportation part of the SCM Results show that association among supply chain and firm and supply chain having mediating effect between supply chain information strategy and firm 25

17 38 Raja shekhar and Devi (2007) To investigate the supply chain practices of process industry 39 Richey Jr et al(2009) To empirical investigate the moderators effect of supply chain integration barriers on firm 40 Sachan and Datta(2005) To explore the logistics and SCM research in the last five decades from the viewpoint of methodology adopted. 41 Sahay et al (2006) To examine current position of supply chain practices research in India practices integration and firm Logistics and SCM Practices SCM of Process industry were compared with best practices using metrics and suggested some improvement in the current system Sample was collected through a questionnaire and validated and assessed by multiple regression model To review the 442 articles by examining the research design, research methods, data analysis and statistical techniques used, source of information and country of research undertaken and authors Proposed a model to assess the supply chain strategy of company and data collected using questionnaire Process industries should modify their existing strategy and cope with SC partner to provide better service and gain business advantage and company should also involve all member of supply chain and implement proper measurement system to achieve superior supply chain Findings depicts that supply chain integration will enhance the firms to excel in the overall of the organization. Results show that there is a rise in the research design like case studies method but most of the current research based empirical survey using advanced data analysis and trend is moving from exploratory research to conceptual model building and lack of research on inter disciplinary, inter level, secondary data and integrated value chain. Finding shows that majority of the Indian firms show that there is no associated among supply chain objective with business goal. 26

18 42 Sahay and Mohan (2003) To examine supply chain practices in India 43 Sauber et al(2008) To explore the process of designing and measuring competencies of supply chain 44 Schoenherr(2009) To study the applications of logistics and supply chain in 45 Shepherd and Gu nter (2006) global scenario To review the measurement and metrics of supply chain practices Logistics and supply chain Survey research was conducted among Indian manager on supply chain practices of their organization Using case study method and cross-sectoral evaluations to sketch on competencies of supply chain Content analysis of 726 articles related to logistics and supply chain Critical review and provide taxonomy to evaluate the measurement of supply chain Result shows that Indian company have to cope with supply chain strategy with company strategy, align the supply chain integration process, reduce inventory by partnership and focus on development of infrastructure and technology Expert option from interdisciplinary subject to create possible linkage among various stakeholders of the organization to improve supply chain competence Finding indicates that research articles have approached research on nondisciplinary of logistics and supply chain. Finding shows that in spite of substantial advances in the literature, some of the important issues have not received sufficient consideration like factors persuade the successful execution of measuring the of supply chain. 27

19 46 Spekman et al (2002) To study the supply Finding shows that greater chain competence competence 47 Stock and Boyer (2009) To frame an integrated definition and to determine critical components of SCM 48 Stock(2009) To find out the developments of supply chain topics 49 Storey et al (2006) To critically review existing developments in the theory and practice of supply chain 50 Sukati et al (2012) To explore the causality among supply chain strategy, supply chain practices and supply chain strategy, supply chain practices and supply chain 28 Sample were collected from the 22 manufacturing industries and analyzed using simple mean, correlation and multiple regression model Using nvivo software by examines 166 explanations of SCM in the literature Review of literature Three-year comprehensive study of six supply chain variables with 72 industries in Europe. Sample collected via questionnaire from 200 managers working in Malaysia manufacturing industry and analyzed using multiple regression collaboration between supply chain partners will improve learning and in the organization. Finding shows that there are three extensive themes of SCM are recognized. They are activities, benefits and components. Result shows that opportunities to enlarge the SC research on theory building, SCM process and network study that will helpful for supply chain executives to solve problems in the firm Finding shows that SCM concept is still developing in terms of theory and practice Finding depicts that supply chain practice has effect on supply chain and supply chain strategy have weak effect on supply chain

20 51 Sukati et al (2009) An empirical study on supply chain practices and its impact on competitive advantage 52 Sundram et al (2011) To assess the effect of supply chain practices on supply chain practices, and competitive advantage SCM practices and supply chain 200 samples were collected through questionnaire based on convenience sampling method from consumer goods industry located in Malaysia and analyzed using multiple regression model Self-administrated empirical survey were used to collect data among 125 electronics Industries in Malaysia. practices have effect on supply chain responsiveness and supply chain practices having positive effect on competitive advantage Finding depicts that supply chain practice has positive relationship with supply chain 53 Tan(2002) To explore practices and concerns of supply chain and it impact on 54 Tan et al (1998) To study the relationship between firm, quality and supply practices, supply chain concerns and Firm, quality and supply Empirical survey in US, through perception of manager on by comparing with major competitors and analyzed using correlation and regression analysis Cross sectional data collected from US manufacturing firms and tested by correlation, factor and regression analysis Result shows that supply chain practices and supply chain concern has positive impact on overall product quality, overall competitive position and customer support levels. Quality and supply practices should implement combinable to achieve superior firm 29

21 55 Tan et al (1999) To find out the quality, supply base effect on 56 Thakkar et al (2008) 57 Tracey et al (2005) 58 Trkman et al (2010) To review existing literature on supply chain practices of SMEs To find out the impact of SCM capabilities on To empirical examine the relationship among business analytics and supply chain Total quality practices, supply base practices, and practices Capabilities and Business analytics and supply chain Sample of 313 manufacturing industries were collected using questionnaire and multiple regression applied to find out the extent of influence Review of around 77 articles from reputed journals on supply chain and development of appropriate construct and propositions are proposed for SME enterprises. Primary data collected using a questionnaire and analysis through the sample of 555 manufacturing industries operating in United State. SEM applied on 310 companies sample from different industries from USA, European countries, North America, South America and China Total quality practices and supply base practices having impact on Finding shows that SCM would be better instrument for SMEs to identify and assess the better supplier and enhance their It is found that there is both indirect and direct impact of outside-in, inside-out, and spanning capabilities on market and financial of the manufacturing organization Findings show existence of a significant and strong positive relationship among analytical capabilities and SC. 30

22 59 Vanichchinchai et al Finding depicts that (2010) 60 Vijayasarathy (2010) 61 Watts and Hahn, Chan K(1993) To explore the effect of total quality practices on supply chain practices and firm s supply To study the impact of usage of technology in supply chain on supply chain To study the supplier development programs 62 Wisner(2003) To develop and empirically test the relationships among supplier and supply chain practices Total quality practices, supply chain practices, and firm s supply technology and supply chain concerns strategies and Proposed a conceptual model and tested using SEM by data collected from 211 manufacturing industries located in Thailand Web base survey of 279 manufacturing industries and tested hypotheses using ANCOVA model Survey conducted to determine supplier development activities SEM was applied to test the proposed model by collected data from manufacturing industries total quality practices having direct effect on supply chain and supply chain practices having indirect effect on supply chain Result shows that supply chain technology have moderated effect on through process innovation and quality Result shows that supplier development programs are highly prevalent in multinational companies. Result reveal that supply chain strategies have positive impact on 31

23 63 Wong et al (2011) To study the impact of supply chain practice and knowledge (KM) capabilities on 64 Yang and Su (2009) To examine the relationship among enterprise resource planning (ERP) and 65 Yusuf et al (2012) To find out the relationship among agile supply chain, competiveness and business practices and knowledge capabilities and Organizational, enterprise resource planning and supply chain Agile supply chain, competiveness and business Primary data collected using questionnaire were examined through SEM framework Empirical survey conducted in Taiwan industries and proposed a SEM model and tested. Data collected from the sample of 158 supply chain mangers has working in oil and gas industry located in UK and analyzed using correlation and oneway ANOVA. Finding depicts that implementation of supply chain practices will have impact on knowledge capabilities and in turn it will influence the Finding shows that implementing ERP in firm having an effect on supply chain and customer value and also provide benefits to other related companies within global supply chain. Finding revealed that supply chain agility having a significant and positive relationship with competiveness and business. 32

24 2.4 CONCEPTUAL MODEL AND RESEARCH HYPOTHESES Based on the literature review of past research work a conceptual model has been framed and ten hypotheses have been formulated, which are portrayed in Figure 2.1. The objectives of this research study is to empirically assess the association among important components of SCM namely supply chain concerns, supply chain practices, supply chain competence and how these critical components influence supply chain which in turn impact the. In the proposed conceptual model, unobserved or latent variable about the manufacturing enterprises have been measured through the response of the executives regarding the different statements included under each of the variables. concerns, supply chain practices and supply chain competence have been taken as independent variables while supply chain and have been considered as dependent or endogenous variables in respect of the supply chain components studied in this research. The hypotheses formulated based on the review of literature have been listed in the forthcoming discussions. Figure 2.1 Conceptual Model Proposed in the Research Work 33

25 Vanichchinchai and Igel (2010) have conducted research with the object to explore the effect of total quality practices on supply chain practices and supply chain on Thai automotive industry by framing a conceptual model and testing using SEM. Their findings reveal that total quality practices have direct impact on supply chain practices while supply chain and supply chain practices have an indirect impact on supply chain. Deshpande (2012) has conducted literature review on supply chain dimensions, supply chain and with the object of reviewing and developing a conceptual framework that shows linkage of supply chain dimension on supply chain and linkage of supply chain and. Huo (2012) has conducted research with objective to investigate the impact of supply chain integration on capability and through structural equation modeling (SEM) based on data collected from 617 Chinese companies. The research findings revealed that supply chain integration have direct and indirect effect on capability while supply chain integration act as partial and full mediating effect on. Ou et al (2010) have investigated the effect of supply chain practices on firm using SEM by collecting sample from Taiwan manufacturing industries. Their conclusion was that supply chain practices have positive effect on while it will exert an indirect impact on financial and customer value. Sukati et al (2012) have studied the relationship among supply chain strategy, supply chain practices and supply chain by collecting primary data by administering a questionnaire to 200 managers working in Malaysian manufacturing firms. The data analysed using statistical tools of simple mean, reliability, validity test, correlation and multiple regression, reveal that supply chain practice has significant effect on supply chain while supply chain strategy exert a weak impact on supply chain. Vijayasarathy (2010) has proposed a research model and tested the proposed hypotheses that supply chain technology affects supply chain using the moderating variables of process innovation, partnership quality and uncertainty. Based on the data collected by administering a online questionnaire to

26 manufacturing enterprises and analysed using the statistical tools of factor analysis and ANCOVA model, the research revealed that supply chain technology uses have moderated through process innovation and quality. Cook et al (2010) have explored the linkage among supply chain practices and with moderating effect of company role on supply chain by surveying US manufacturing enterprises. The data analysed using Regression reveal that supply chain practices have a significant impact on and company role on supply chain has significant difference with respect to supply chain practices. Kristal et al (2010) have tested a conceptual model exploring the effect of supply chain (SC) strategy on capabilities and of 174 US manufacturing enterprises. The data analysed using cluster analysis and Structural equation model (SEM), reveal that combinative capabilities act as mediating variable for supply chain strategy and. They conclude that SC strategy have a direct and indirect effect on capabilities and. Qrunfleh and Tarafdar (2012) have assessed and tested a conceptual model to find out the impact of supply chain information strategy on supply chain and by collecting sample data through questionnaire of 205 manufacturing firms and hypotheses were tested using SEM. The results shows that there is significant and positive association among supply chain and firm and supply chain have a mediating effect on supply chain information strategy and. Wong and Wong (2011) have conducted research and proposed a conceptual framework on linkage of supply chain, knowledge capability and firm in the Asia Pacific region. Data analysed using statistical tools of Mediated regression analysis and path analysis reveal that supply chain practice have positive and significant impact on knowledge capability and firm. Yusuf et al (2012) have explored the relationship among agile supply chain competiveness and business of 158 UK managers working in oil and gas industry. The data analysed using normality test, correlation and one-way ANOVA reveal that supply chain agility have a significant effect on competiveness and business. 35

27 Chow et al (2008) found that and supply chain practices and competencies are having association in US and Taiwan manufacturing enterprises The first set of hypotheses tries to study the association among the three important components of supply chain namely, supply chain practices, supply chain concerns and supply chain competence. Tan et al. (1999); Gripsrud et al (2006); Stock and Luhrsen (1993); Chen and Paulraj (2004); Stock and Broadus (1993); Storey et al (2006); Burgess et al (2006); Croom et al (2000); Min and Mentzer (2004); Gupta et al (2006); Lee et al (2011); Schoenherr (2009); Richey Jr, et al (2009) and Chow et al (2008) have argued that SCM is not merely about routine practices. Rather, it has some intricate components that must work with one another to constitute a complete SCM. Based on literature review, the following hypotheses were formulated: H1: practices and supply chain concerns are associated. H2: practices and supply chain competencies are associated. H3: concerns and supply chain competencies are associated. Tan (2002) has indicated in his research work that there is a direct relationship among supply chain competence and, while Wisner (2003) proved that there is relationship between quality commitment and understanding of the supply chain dynamics and hence on business. Chow et al (2008) found that supply chain competence have very positive effect on US and Taiwan manufacturing enterprises. Koh et al (2007) observed in his study that high levels of supply chain practices have high impact on operational, while Bhatnagar and Sohal (2008) identified the impact of location decision framework and its resultant effect on the supply chain uncertainties and manufacturing practices. Hsu et al (2007) has identified the direct relationship between operations capability and supply chain practices and its resultant impact on the, while Bayraktar et al (2009) has validated that supply chain practices positively impact the operational of manufacturing enterprises. Li et al (2005) has found the existence of a direct relationship between organizations with high levels of SCM practices and its market competitive advantage and, while Ou et al (2012) has identified that customer- 36

28 firm-supplier relationship and its resultant impact on the internal contextual factors, shall exert positive effects on. Wong et al (2011) has identified the resultant positive influence of knowledge capabilities on supply chain practices, while Sundram et al (2011) have found existence of direct relationship among supply chain practices and supply chain. Lee et al (2011 has found that have association with SC innovation factor constructs, while Ellinger et al (2012) have found out that higher supply chain competence exerts impact on customer satisfaction, and shareholder value. Yang and Su (2009) has found that ERP factors like operational, tactical and strategic benefits exert impact on. Based on the above literature, the following second set of hypotheses have been arrived at: H4: The level of supply chain concern positively influences the degree of supply chain. H5: The level of supply chain competence positively influences the degree of supply chain. H6: The level of supply chain practice positively influences the degree of supply chain. H7: The level of supply chain concern positively influences the degree of. H8: The level of supply chain competence positively influences the degree of. H9: The level of supply chain practice positively influences the degree of. H10: The level of supply chain positively influences the. The above hypotheses shall be tested for exploring the existence of any causality relationship among the proposed variables using SEM framework. 37

29 2.5 CONCLUSIONS This chapter highlights the literature serving as the source of hypotheses for the proposed study. The chapter also highlights the source from which the variables used in this study relating to measuring the supply chain concerns, supply chain competence, supply chain practices, supply chain and of manufacturing enterprises have been obtained. Based on the existing literature, a conceptual model has been proposed and research gap has been identified. Past research studies have focused on different supply chain components, impact of supply chain components on, and relationship between supply chain and. However, there is no study on impact of supply chain components on supply chain and in turn its impact on. This has been identified as the research gap for the proposed study. 38