Re-Examining Supply Chain Fit: An Assessment of Moderating Factors

Abstract

Research has emphasized the importance of matching products' characteristics with their supply chain design (i.e., supply chain fit). Fisher () introduced the notion of supply chain fit and indicated that before developing a supply chain firms must consider the nature of the demand for their products. I expand on the Fisher () framework by offering a more comprehensive understanding of when it pays off for firms to deploy resources to achieve supply chain fit. I argue that it is simplistic to assume that perfect supply chain fit will always lead to improved financial performance because the benefits generated by perfect supply chain fit might be offset by the resources deployed to achieve that fit. In order to execute this research I use archival and survey data to evaluate the moderating effects of six dimensions of environmental uncertainty (e.g., munificence, market dynamism, technological dynamism, technical complexity, product diversity, and geographic dispersion) on the relationship between supply chain fit and financial performance.