The impacts of Triple-A supply chain on supply chain performance in Ethiopian textile share company

https://doi.org/10.35912/ijfam.v3i3.633
Published: Dec 22, 2021

Abstract:

Purpose: This work aimed to investigate the impact of triple-A supply chain (SC) on SC performance in Bahir Dar & Kombolcha textile Share Company, Ethiopia.

Research Methodology: The study used survey questionnaires as a data collection instrument. Statistical package for social science to purify measurement items & Partial least square structural equation model used to test whether SC agility, SC adaptability, and SC alignment have individual or joint effects on SC performance.

Results: The finding indicates that SC adaptability, SC alignment, and SC agility have a significant effect on SC performance. The result also indicates that the joint triple-A SC had a strong impact on SC performance.

Limitations: The study focused on two Ethiopian textile share companies and it does not include other companies in the country.

Contribution: This study allows us to understand the joint triple-A SC, SC agility, adaptability, and SC alignment-SC performance relationships at a dimensional level and helps to develop a comprehensive research model.

Keywords:
1. Adaptability
2. Agility
3. Alignment
4. Partial Least Square Structural Equation Modeling
5. SC performance
6. Triple-A
Authors:
Endris Ali
Department of Logistics and Supply Chain Management, College of Business & Economics, Dilla University, Ethiopia
https://orcid.org/0000-0003-3833-4455
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How to Cite
Ali, E. (2021). The impacts of Triple-A supply chain on supply chain performance in Ethiopian textile share company. International Journal of Financial, Accounting, and Management, 3(3), 245–258. https://doi.org/10.35912/ijfam.v3i3.633
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Vol. 3 No. 3 (2021): December
Articles
References

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    Arana-Solares, Ivan, Machuca, Jose, & Alfalla-Luque, Rafaela. (2011). Proposed framework for research in the triple A (Agility, Adaptability, Alignment) in supply chains Managing global supply chain relationships: operations, strategies, and practices (pp. 306-321): IGI Global.

    Attia, Ahmed M. (2016). The effect of triple-A supply chain on performance applied to the Egyptian textile industry. International Journal of Integrated Supply Management, 10(3/4), 225-245.

    Baker, P. (2008). The design and operation of distribution centres within agile supply chains. International Journal of Production Economics, 111(1), 27–41. https://doi.org/10.1016/j.ijpe.2006.09.019

    Baramichai, Manisra, Zimmers Jr, Emory W, & Marangos, Charalambos A. (2007). Agile supply chain transformation matrix: an integrated tool for creating an agile enterprise. Supply Chain Management: An International Journal, 12(5), 334-348.

    Chan, H. K., & Chan, F. T. S. (2010). Comparative study of adaptability and flexibility in distributed manufacturing supply chains. Decision Support Systems, 48(2), 331–341. https://doi.org/10.1016/j.dss.2009.09.001

    Chan, H. K., Wang, W. Y. C., Luong, L. H. s., & Chan, F. T. S. (2009). Flexibility and adaptability in supply chains: A lesson learnt from a practitioner. Supply Chain Management: An International Journal, 14(6), 407–410. https://doi.org/10.1108/13598540910995165

    Dubey, Rameshwar, Altay, Nezih, Gunasekaran, Angappa, Blome, Constantin, Papadopoulos, Thanos, & Childe, Stephen J. (2018). Supply chain agility, adaptability, and alignment: empirical evidence from the Indian auto components industry. International Journal of Operations & Production Management, 38(1), 129-148.

    Dubey, Rameshwar, Singh, Tripti, & Gupta, Omprakash K. (2015). Impact of agility, adaptability, and alignment on humanitarian logistics performance: Mediating effect of leadership. Global Business Review, 16(5), 812-831.

    Dwayne Whitten, G, Green Jr, Kenneth W, & Zelbst, Pamela J. (2012). Triple-A supply chain performance. International Journal of Operations & Production Management, 32(1), 28-48.

    Eckstein, Dominik, Goellner, Matthias, Blome, Constantin, & Henke, Michael. (2015). The performance impact of supply chain agility and supply chain adaptability: the moderating effect of product complexity. International Journal of Production Research, 53(10), 3028-3046.

    Elwan Ibrahim, Sherwat, & Ogunyemi, Olayinka. (2012). The effect of linkages and information sharing on supply chain and export performance: An empirical study of Egyptian textile manufacturers. Journal of Manufacturing Technology Management, 23(4), 441-463.

    Fish, Lynn. (2015). Recommendations for Implementing Sustainability in New Product Development for Supply Chain Management. Business Research Consortium of Western New York: New York, NY, USA, 119.

    Garver, & Mentzer. (1999). Logistics regression method: Employing structural modelling to test for construct validity.

    Gligor, David M, & Holcomb, Mary C. (2012). Understanding the role of logistics capabilities in achieving supply chain agility: a systematic literature review. Supply Chain Management: An International Journal, 17(4), 438-453.

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    Hair, Joseph F, Ringle, Christian M, & Sarstedt, Marko. (2013). Partial least squares structural equation modeling: Rigorous applications, better results, and higher acceptance. Long range planning, 46(1-2), 1-12.

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    Lalonde, & Pohlem. (1996). Issues in Supply chain costing. 7, 1996.

    Lee, Hau L. (2004). The triple-A supply chain. Harvard business review, 82(10), 102-113.

    Magutu, Peterson Obara, Mbeche, Isaac Meroka, Njihia, James Muranga, & Nyaoga, Richard Bitange. (2016). The relationship between supply chain strategies and supply chain performance among large-scale manufacturing firms: the moderating effect of supply chain technology. EuroMed Journal of Management, 1(2), 123-148.

    Mangan, John, & Christopher, Martin. (2005). Management development and the supply chain manager of the future. The International Journal of Logistics Management, 16(2), 178-191.

    Mikalef, P., Pateli, A., Batenburg, R., & van de Wetering, R. (2013). Investigating the Impact of Procurement Alignment on Supply Chain Management Performance. Procedia Technology, 9, 310–319. https://doi.org/10.1016/j.protcy.2013.12.035

    Qi, Yinan, Boyer, Kenneth K, & Zhao, Xiande. (2009). Supply chain strategy, product characteristics, and performance impact: evidence from Chinese manufacturers. Decision Sciences, 40(4), 667-695.

    Qrunfleh, Sufian, & Tarafdar, Monideepa. (2014). Supply chain information systems strategy: Impacts on supply chain performance and firm performance. International Journal of Production Economics, 147, 340-350.

    Revelle, W., & Zinbarg, R. (2009). Coefficients Alpha, Beta, Omega, and the GLB. Psychometrika, 74(1), 145–154.

    Roh, James, Hong, Paul, & Min, Hokey. (2014). Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms. International Journal of Production Economics, 147, 198-210.

    Sánchez, A. M., & Pérez, M. P. (2007). Supply chain flexibility and firm performance: A conceptual model and empirical study in the automotive industry. International Journal of Operations and Production Management, 25(7), 681–700. https://doi.org/10.1108/01443570510605090

    Simatupang, Togar M, & Sridharan, Ramaswami. (2005). The collaboration index: a measure for supply chain collaboration. International Journal of Physical Distribution & Logistics Management, 35(1), 44-62.

    Stevenson, Mark, & Spring, Martin. (2007). Flexibility from a supply chain perspective: definition and review. International journal of operations & production management, 27(7), 685-713.

    Swafford, Patricia M, Ghosh, Soumen, & Murthy, Nagesh. (2008). Achieving supply chain agility through IT integration and flexibility. International Journal of Production Economics, 116(2), 288-297.

    Tan, K. C., Kannan, V. R., Hsu, C. C., & Leong, G. K. (2010). Supply chain information and relational alignments: Mediators of EDI on firm performance. International Journal of Physical Distribution and Logistics Management, 40(5), 377–394. https://doi.org/10.1108/09600031011052831

    Tang, C., & Tomlin, B. (2008). The power of flexibility for mitigating supply chain risks. International Journal of Production Economics, 116(1), 12–27. https://doi.org/10.1016/j.ijpe.2008.07.008

    Wong, Chee Yew, Boon-Itt, Sakun, & Wong, Christina WY. (2011). The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29(6), 604-615.

    Yusuf, Y. Y., Adeleye, E. O., & Sivayoganathan, K. (2003). Volume flexibility: the agile manufacturing conundrum. Management Decision, 41(7), 613–624. https://doi.org/10.1108/00251740310495540

  1. Alfalla-Luque, Rafaela, Machuca, José AD, & Marin-Garcia, Juan A. (2018). Triple-A and competitive advantage in supply chains: Empirical research in developed countries. International Journal of Production Economics, 203, 48-61.
  2. Arana-Solares, Ivan, Machuca, Jose, & Alfalla-Luque, Rafaela. (2011). Proposed framework for research in the triple A (Agility, Adaptability, Alignment) in supply chains Managing global supply chain relationships: operations, strategies, and practices (pp. 306-321): IGI Global.
  3. Attia, Ahmed M. (2016). The effect of triple-A supply chain on performance applied to the Egyptian textile industry. International Journal of Integrated Supply Management, 10(3/4), 225-245.
  4. Baker, P. (2008). The design and operation of distribution centres within agile supply chains. International Journal of Production Economics, 111(1), 27–41. https://doi.org/10.1016/j.ijpe.2006.09.019
  5. Baramichai, Manisra, Zimmers Jr, Emory W, & Marangos, Charalambos A. (2007). Agile supply chain transformation matrix: an integrated tool for creating an agile enterprise. Supply Chain Management: An International Journal, 12(5), 334-348.
  6. Chan, H. K., & Chan, F. T. S. (2010). Comparative study of adaptability and flexibility in distributed manufacturing supply chains. Decision Support Systems, 48(2), 331–341. https://doi.org/10.1016/j.dss.2009.09.001
  7. Chan, H. K., Wang, W. Y. C., Luong, L. H. s., & Chan, F. T. S. (2009). Flexibility and adaptability in supply chains: A lesson learnt from a practitioner. Supply Chain Management: An International Journal, 14(6), 407–410. https://doi.org/10.1108/13598540910995165
  8. Dubey, Rameshwar, Altay, Nezih, Gunasekaran, Angappa, Blome, Constantin, Papadopoulos, Thanos, & Childe, Stephen J. (2018). Supply chain agility, adaptability, and alignment: empirical evidence from the Indian auto components industry. International Journal of Operations & Production Management, 38(1), 129-148.
  9. Dubey, Rameshwar, Singh, Tripti, & Gupta, Omprakash K. (2015). Impact of agility, adaptability, and alignment on humanitarian logistics performance: Mediating effect of leadership. Global Business Review, 16(5), 812-831.
  10. Dwayne Whitten, G, Green Jr, Kenneth W, & Zelbst, Pamela J. (2012). Triple-A supply chain performance. International Journal of Operations & Production Management, 32(1), 28-48.
  11. Eckstein, Dominik, Goellner, Matthias, Blome, Constantin, & Henke, Michael. (2015). The performance impact of supply chain agility and supply chain adaptability: the moderating effect of product complexity. International Journal of Production Research, 53(10), 3028-3046.
  12. Elwan Ibrahim, Sherwat, & Ogunyemi, Olayinka. (2012). The effect of linkages and information sharing on supply chain and export performance: An empirical study of Egyptian textile manufacturers. Journal of Manufacturing Technology Management, 23(4), 441-463.
  13. Fish, Lynn. (2015). Recommendations for Implementing Sustainability in New Product Development for Supply Chain Management. Business Research Consortium of Western New York: New York, NY, USA, 119.
  14. Garver, & Mentzer. (1999). Logistics regression method: Employing structural modelling to test for construct validity.
  15. Gligor, David M, & Holcomb, Mary C. (2012). Understanding the role of logistics capabilities in achieving supply chain agility: a systematic literature review. Supply Chain Management: An International Journal, 17(4), 438-453.
  16. Hair, Joseph F, Anderson, Rolph E, Tatham, Ronald L, & William, C. (1998). Black (1998), Multivariate data analysis: Upper Saddle River, NJ: Prentice Hall.
  17. Hair, Joseph F, Ringle, Christian M, & Sarstedt, Marko. (2013). Partial least squares structural equation modeling: Rigorous applications, better results, and higher acceptance. Long range planning, 46(1-2), 1-12.
  18. Hair Jr, Joseph F, Hult, G Tomas M, Ringle, Christian, & Sarstedt, Marko. (2016). A primer on partial least squares structural equation modeling (PLS-SEM): Sage publications.
  19. Hult, G Tomas M, Ketchen, David J, & Arrfelt, Mathias. (2007). Strategic supply chain management: Improving performance through a culture of competitiveness and knowledge development. Strategic management journal, 28(10), 1035-1052.
  20. Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20, 277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014
  21. Lalonde, & Pohlem. (1996). Issues in Supply chain costing. 7, 1996.
  22. Lee, Hau L. (2004). The triple-A supply chain. Harvard business review, 82(10), 102-113.
  23. Magutu, Peterson Obara, Mbeche, Isaac Meroka, Njihia, James Muranga, & Nyaoga, Richard Bitange. (2016). The relationship between supply chain strategies and supply chain performance among large-scale manufacturing firms: the moderating effect of supply chain technology. EuroMed Journal of Management, 1(2), 123-148.
  24. Mangan, John, & Christopher, Martin. (2005). Management development and the supply chain manager of the future. The International Journal of Logistics Management, 16(2), 178-191.
  25. Mikalef, P., Pateli, A., Batenburg, R., & van de Wetering, R. (2013). Investigating the Impact of Procurement Alignment on Supply Chain Management Performance. Procedia Technology, 9, 310–319. https://doi.org/10.1016/j.protcy.2013.12.035
  26. Qi, Yinan, Boyer, Kenneth K, & Zhao, Xiande. (2009). Supply chain strategy, product characteristics, and performance impact: evidence from Chinese manufacturers. Decision Sciences, 40(4), 667-695.
  27. Qrunfleh, Sufian, & Tarafdar, Monideepa. (2014). Supply chain information systems strategy: Impacts on supply chain performance and firm performance. International Journal of Production Economics, 147, 340-350.
  28. Revelle, W., & Zinbarg, R. (2009). Coefficients Alpha, Beta, Omega, and the GLB. Psychometrika, 74(1), 145–154.
  29. Roh, James, Hong, Paul, & Min, Hokey. (2014). Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms. International Journal of Production Economics, 147, 198-210.
  30. Sánchez, A. M., & Pérez, M. P. (2007). Supply chain flexibility and firm performance: A conceptual model and empirical study in the automotive industry. International Journal of Operations and Production Management, 25(7), 681–700. https://doi.org/10.1108/01443570510605090
  31. Simatupang, Togar M, & Sridharan, Ramaswami. (2005). The collaboration index: a measure for supply chain collaboration. International Journal of Physical Distribution & Logistics Management, 35(1), 44-62.
  32. Stevenson, Mark, & Spring, Martin. (2007). Flexibility from a supply chain perspective: definition and review. International journal of operations & production management, 27(7), 685-713.
  33. Swafford, Patricia M, Ghosh, Soumen, & Murthy, Nagesh. (2008). Achieving supply chain agility through IT integration and flexibility. International Journal of Production Economics, 116(2), 288-297.
  34. Tan, K. C., Kannan, V. R., Hsu, C. C., & Leong, G. K. (2010). Supply chain information and relational alignments: Mediators of EDI on firm performance. International Journal of Physical Distribution and Logistics Management, 40(5), 377–394. https://doi.org/10.1108/09600031011052831
  35. Tang, C., & Tomlin, B. (2008). The power of flexibility for mitigating supply chain risks. International Journal of Production Economics, 116(1), 12–27. https://doi.org/10.1016/j.ijpe.2008.07.008
  36. Wong, Chee Yew, Boon-Itt, Sakun, & Wong, Christina WY. (2011). The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29(6), 604-615.
  37. Yusuf, Y. Y., Adeleye, E. O., & Sivayoganathan, K. (2003). Volume flexibility: the agile manufacturing conundrum. Management Decision, 41(7), 613–624. https://doi.org/10.1108/00251740310495540