Antecedents of a Firm's Supply Chain Agility: The Roles of a Transactive Memory System and Supply Network Flexibility

Abstract

Purpose The purpose of this paper is twofold: first, to evaluate the roles of a transactive memory system and the supply network flexibility (SNF) of the firm as antecedents of a firm’s supply chain agility (FSCA), also incorporating the moderating role of the transactive memory system; and, second, to evaluate the relationship between FSCA and operations performance (OP). Design/methodology/approach Four hypothesized relationships are tested with survey data from 190 high-tech firms using structural equation models. Findings FSCA can be enhanced through the transactive memory system and SNF, although a higher degree of transactive memory system weakens the positive relationship between SNF and FSCA. A positive relationship is identified between FSCA and OP, while FSCA mediates the relationship between SNF and OP. Practical implications Managers can increase FSCA and improve OP by developing both the transactive memory system and SNF. Given that firms have limited resources, investment in internal capabilities should be prioritized as this appears to be more effective at developing FSCA. Originality/value The findings expand the literature by exploring two antecedents of FSCA and by analyzing the impact of FSCA on different measures of OP. Few prior studies have highlighted the importance of the transactive memory system to the operations function.