Modelling supply chain visibility: a framework with considerations for manufacturing and business

Abstract

Purpose

Supply chain visibility plays a pivotal role in ensuring stakeholders have access to and share mutually beneficial information - information that is critical to processes, operations, and informed decision-making. This study leverages a framework to explore the influence of four key factors on supply chain visibility: supply chain linkages, supply chain relationships, green absorptive capacity, and information sharing.

Design/methodology/approach

This investigation adopted a survey-based research methodology to collect data. A sampling strategy was employed to recruit participants from various industry sectors, with a primary focus on manufacturing and business. A total of 204 useable questionnaires were obtained. Exploratory factor analysis was conducted to identify underlying factors within the data. Confirmatory factor analysis (CFA) was then used to assess the validity and reliability of the identified factors. Finally, structural equation modelling was employed to test the hypothesised relationships between the constructs studied.

Findings

This study's findings, particularly the significant positive correlations observed between information sharing, supply chain relationship, internal linkage, and green absorptive capacity, provide evidence that these factors are key drivers of supply chain visibility. Additionally, the analysis revealed that external linkages with supply chain partners further enhance information sharing within the chain.

Originality/value

This study offers a unique contribution by exploring the interplay between green absorptive capacity, information sharing, internal and external supply chain linkages, and their combined influence on supply chain visibility. Extending prior research that focused primarily on information sharing and traditional supply chain relationships, this study integrates green absorptive capacity and linkages within a novel framework. Our findings suggest that green absorptive capacity enhances information sharing within the supply chain network, ultimately leading to improved visibility. Furthermore, the study distinguishes the influence of internal vs external linkages on visibility.