Supply chain integration, risk management and manufacturing flexibility

Abstract

Purpose: The purpose of this paper is to investigate the impact of internal integration, external integration (EI), and supply chain risk management (SCRM) on manufacturing flexibility, and the moderating effect of SCRM on the relationships between internal and EI, respectively, and manufacturing flexibility. Design/methodology/approach: Using hierarchical regression, data are analyzed from a sample of 343 manufacturing plants in Asia collected in 2013-2014 as part of the International Manufacturing Strategy Survey (IMSS VI). Findings: Internal integration and SCRM have a direct effect on manufacturing flexibility. SCRM moderates the relationship between EI and flexibility. Research limitations/implications: Further research is needed to generalize beyond the flexibility performance of discrete manufacturing firms in Asia. Practical implications: To benefit from EI and increase their flexibility performance, manufacturing firms need to implement different mechanisms of SCRM to prevent and deal with supply chain risks including those associated with supply chain integration. Originality/value: This research contributes to the body of knowledge on the relationships between internal integration, EI, SCRM, and manufacturing flexibility.