Relationships between business environment characteristics, competitive priorities, supply chain structures, and firm business performance – An Application of SEM
by
Ting Chi
Department of Apparel Merchandising and Management, California State Polytechnic University at Pomona
Coauthors: Peter D. Kilduff and Vidyaranya B. Gargeya

This study was built on previous research in strategic and supply chain management. Despite theoretical support for a model linking business environment characteristics, competitive priorities, supply chain structures, and business performance, a simultaneous empirical investigation of all of these aspects has been lacking in the literature. This study addressed this deficiency and proposed a conceptual model linking all these constructs.

The study developed a reliable and valid survey instrument for measuring all these constructs. The lean, hybrid and agile supply chain structure classification was proposed. The organizational components of these structures are developed and tested. The results showed the measurement was effective.

By establishing a conceptual model and developing structural equation modeling (SEM) analysis, the study provided a systemic understanding of the relationships between the individual environmental dimensions, the individual competitive priorities and supply chain structures, and the impact of congruency between these elements on firm performance. The appropriate strategic responses and supply chain structure design to a specific business environment were identified. The sequence of incongruence between these elements was quantified revealed. It is expected that this study will provide the springboard for further research related to these critical issues.

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Date received: July 26, 2007