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Environmental Uncertainty and Strategic Supply Management: A Resource Dependence Perspective and Performance Implications
Author(s) -
Paulraj Antony,
Chen Injazz J.
Publication year - 2007
Publication title -
journal of supply chain management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1523-2409
DOI - 10.1111/j.1745-493x.2007.00033.x
Subject(s) - operationalization , business , supply chain management , structural equation modeling , purchasing , supply management , industrial organization , strategic financial management , strategic management , supply chain , strategic sourcing , construct (python library) , sample (material) , order (exchange) , resource (disambiguation) , perspective (graphical) , marketing , strategic planning , computer science , computer network , philosophy , power (physics) , physics , chemistry , epistemology , chromatography , quantum mechanics , machine learning , finance , programming language , artificial intelligence
SUMMARY Environmental uncertainty plays a crucial role in the implementation of strategic supply management initiatives. The current study adopts the resource dependence theory to explain the direct effect of supply chain uncertainties on strategic supply management, operationalized as a second‐order construct comprising strategic purchasing, long‐term relationship orientation, interfirm communication, cross‐organizational teams and supplier integration. Using structural equation modeling, the 200‐firm sample provided evidence that strategic supply management is driven by supply and technology uncertainty. Demand uncertainty, on the other hand, was not found to have a significant impact on strategic supply management. Findings further support the link between strategic supply management and the performance of both buying and supplying firms.