Direct and indirect influences of supply chain management practices on competitive advantage in fast fashion manufacturing industry

Jahed, Mohammed Abu, Quaddus, Mohammed, Suresh, Nallan C., Salam, Mohammad Asif, and Khan, Eijaz Ahmed (2022) Direct and indirect influences of supply chain management practices on competitive advantage in fast fashion manufacturing industry. Journal of Manufacturing Technology Management, 33 (3). pp. 598-617.

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Purpose: This study investigates supply chain management (SCM) practices in a specific fast fashion apparel (FFA) industry. The impacts of SCM practices on competitive advantage (CA) are investigated via mediating roles of supply chain agility (SCA) and partnership quality (PQ). Resource advantage (R-A) theory, in addition to resource-based view (RBV) and dynamic capability theories, is used as theoretical underpinning.

Design/methodology/approach: A mixed-method approach is adopted: a qualitative field study and survey research. Data from 296 apparel manufacturers in Bangladesh are analyzed using the partial least squares structural equation modeling (PLS-SEM) approach, involving reflective and formative, first- and second-order constructs and mediation tests using the Hayes PROCESS macro.

Findings: Both SCM practices and PQ significantly affect SCA. SCM practices are found to directly enhance CA, but, counterintuitively, only marginally. Only through mediations of SCA and PQ do SCM practices enhance CA significantly. This is a departure from past research that has postulated direct effects between SCM practices and CA.

Research limitations/implications: This research is confined to the FFA industry and one national setting, Bangladesh. The data analyzed is also cross-sectional, with customary limitations on the temporal dimension.

Practical implications: SCM practices contribute to CA, but only through the mediation of PQ and SCA. This is an important directive to practitioners. Also, the second-order reflective measures for each construct indicate the specific SCM practices needed to maximize CA.

Originality/value: This study contributes to the literature on SCM practices in FFA industry, specifically the mediating roles of PQ and SCA, resulting in new, more nuanced findings that are important in dynamic business settings, driven by new theoretical perspectives incorporating R-A theory, which has hardly been utilized before in SCM research.

Item ID: 76660
Item Type: Article (Research - C1)
ISSN: 1741-038X
Keywords: Supply chain agility, SCM practice, Partnership quality, Competitive advantage, Apparel manufacturing, Resource-based view, Dynamic capabilities, Resource advantage theory, PLS-SEM
Copyright Information: Copyright © 2022, Emerald Publishing Limited
Date Deposited: 06 Dec 2022 04:07
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350799 Strategy, management and organisational behaviour not elsewhere classified @ 100%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1503 Management and productivity > 150302 Management @ 100%
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