The role of competitive environment and strategy in the supply chain's agility, adaptability and alignment capabilities

Abstract

Purpose: This paper analyses the way that the industry's competitive environment and the company's strategy influence the implementation of the supply chain's (SC’s) triple-A capabilities (agility, adaptability and alignment). Two competitive environment variables are analysed: competitive intensity of the industry and complexity of the SC. Two opposing competitive strategies are also considered: cost and differentiation. Design/methodology/approach: The hypotheses have been tested using data gathered via a questionnaire given to 277 Spanish manufacturing companies, and structural equation modelling has been used for the analysis. Findings: The results show that competitive intensity is the most influential factor followed by business strategy. SC complexity does not seem to affect agility. Moreover, although the competitive environment variables affect the business strategy, the latter has no mediating effects between the competitive environment and SC agility, adaptability and alignment capabilities. Originality/value: This study presents new insights into the environmental and strategic drivers linked to the implementation of SC agility, adaptability and alignment capabilities and offers guidelines to managers involved in SC management.