A STUDY ON INFLUENCE OF SUPPLY CHAIN STRATEGIES ON COMPETITIVE ADVANTAGE OF TEXTILE INDUSTRY – AN INTEGRATED MODEL
Abstract
This research paper represents one of the first empirical efforts to explore the complex causal relationships within the textile supply chain of south India. The research focuses on the textile industry’s supply Chain Collaboration, Business Process Orientation, Supply Chain Pressure and Competitive Advantage with special geographical reference to Erode, a major hub of textiles in Tamilnadu, South India. The need for this study had risen from various literature reviews and industry associations’ demand by which the researcher had understood the importance of the study and its industry implications.
The study has adapted a descriptive design and the data were collected both from primary and secondary sources. A structured questionnaire was developed, validated and administered for the primary data. Valid and reliable measures of Supply chain strategies, mitigation of supply chain pressure and their impact on competitive advantage were studied. The instrument development process involved structured interviews, a pilot survey and a large –scale survey. The large scale survey yielded 235 responses from registered textile supply chain partners-cloth manufacturers, wholesalers and retailers who are the members of Erode cloth merchant association, the largest association textile traders in South India. Exact statistical methods were used to asses and validate the constructs. The methods were: reliability, and structural equation modeling. An integrated model was developed and tested using structural equation methodology. The research findings support the notion that higher levels of Supply chain strategies will lead to improved Competitive advantage and mitigate the supply chain pressure. The strategies studied with reference to textile industry are supply chain collaboration and business process orientation. A SEM model with R2 value 0.407 is derived.References
Ashok Desai. “A brief report Textile industry in Indiaâ€, 2012 http://www.cci.in/pdf/surveys_reports/indian-textile-industry.pdf, Accessed on April 12, 2012
Chandra Pankaj. “Competing through Capabilities: Strategies for Global Competitiveness of Indian Textile Industryâ€, Economic and Political Weekly, February 27. 1999.
Chang Won Lee, Ik-Whan G. Kwon, Dennis Severance. "Relationship between supply chain performance and degree of linkage among supplier, internal integration, and customer", Supply Chain Management: An International Journal, Vol. 12 Iss: 6, 2007 pp.444 – 452.
Chee Yew Wong, Jan Stentoft Arlbjørn, John Johansen, "Supply chain management practices in toy supply chains", Supply Chain Management: An International Journal, Vol. 10 Iss: 5, (2005) pp.367 – 378
Coombs, R. & Hull, R. “The wider research context of business process analysisâ€, Center for Research on Organizations, Management and Technical Change. Manchester School of Management (1996).
Davenport, T. H. “Process Innovation: Reengineering Work Through Information Technologyâ€, Harvard Business School Press, Boston, MA (1993).
Davenport, T.H, & Short, J.E. “The new industrial engineering: Information Technology and business process redesignâ€, Sloan Management Review, Vol. 31, No. 4. (1990) pp. 11- 27.
Day, George S. “The capabilities of market driven organizationsâ€, Journal of Marketing, October, (1994) pp. 37-52.
Fields J. “Conducting a business process analysisâ€, 2007 [online]. Available: http://www.achievingthedream.org/_pdfs/_strategyinstitute07/BPA_presentation[1].pdf. Accessed 10 April 2012).
Fitzgerald B, Murphy C. “Business process reengineering, the Creation and implementation of methodologyâ€, 1996. [online]. Available: www.csis.ul.ie/staff/bf/infobpr3.pdf. (Accessed 10 April 2012).
Gary Teng S Hector Jaramillo. "A model for evaluation and selection of suppliers in global textile and apparel supply chains", International Journal of Physical Distribution & Logistics Management, Vol. 35 Iss: 7, 2005, pp.503 – 523
Govt. of India, Ministry of Textiles “Report of the working group on Textiles and jute industry for the eleventh five year plan (2007-2012)â€.
Gunasekaran, A.; Patel, C; Tirtiroglu, E. “Performance measurement and metrics in a supply chain environmentâ€, International Journal of Operations & Production Management, Vol. 21 No.1/2, (2001)pp. 71-87.
Hammer, M. “How process enterprises really workâ€, Harvard Business Review Vol. 77 No.6, (1999)pp. 108-118.
http://business.mapsofindia.com/india-industry/silk.html
Janat Shah, Supply chain management, Pearson Publications 2009.
Jimmy K.C. Lam, R. Postle. "Textile and apparel supply chain management in Hong Kong", International Journal of Clothing Science and Technology, Vol. 18 Iss: 4, 2006 pp.265 – 277
Khan Md. Ariful Haque, Md. Mosharraf Hossain, Md. Shahriar Jahan Hossain, Md. Ariful Islam Mehedi Hassan, Md. Shamshuzzaman and Md. Delwar Hossain. “Performance Evaluation of Bangladeshi Apparel and Textile Supply chain Networkâ€, World review of Business Research Vol 1. No.1 March 2011 pp. 211-218
Lockamy A, McCormack K. “The development of a supply chain management process maturity model using the concepts of business process orientationâ€, Supply Chain Management.: Int. J. 9(4) (2004)pp: 272-278.
Manoj Vaish & Rajesh Dubey. “Emerging Textile SMEs of Indiaâ€, 2012 http://www.dnb.co.in / SMEs textile / overview.asp, accessed on April 12, 2012.
Mc. Cormack K. “The development of a measure of business process orientation and the relationship to organizational performanceâ€, 1999. BPR online learning centre. Available: www.prosci.com/mccormack.htm.
McCormack K Taylor Wilkerson, Dave Marrow, Melinda Davey, Mitul Shah, Deanna Yee. “Managing Risk in Your Organization with the SCOR Methodologyâ€, The Supply Chain Council Risk Research Team, June, 2008
McCormack K, J. Willems, J. Van den Bergh, D. Deschoolmeester, P. Willaert, M. Indihar Å temberger, R. Å krinjar, P. Trkman, M.B. Ladeira, M.P.V. de Oliveira, V. Bosilj Vuksić, N. Vlahović. “A global investigation of key turning points in business process maturityâ€, Business Process Management Journal 15 (5) 2009,pp 792–815.
McCormack K, Johnson WC. “Business process orientation: Gaining the e-business competitive advantageâ€, Delray Beach, FL: St Lucie Press, 2001.
McCormack K, Rauseo N. “Building an enterprise process view using cognitive mappingâ€. Bus. Proc. Manage. J. 11(1), 2005, pp 63-74.
McCormack K. “Business process orientation, supply chain management, and the e- corporationâ€, IIE Solut. 33(10), 2001b, pp 33-35.
McCormack K. “Business process orientation: Do you have it?†Qual. Progr. 34(1), 2001a, pp 51-58.
McCormack, K. & Johnson, W. “Business process orientation; gaining the e-business competitive advantageâ€, Delray Beach, FL: St Lucie Press, 2001.
Mihir Dash and Sandeep Gupta Nalam. “Managing uncertainties in Textile supply chainsâ€, working paper -2009
Ranjan Jaykant Sabhaya and Jaykant GS Abhaya. “Project Financing for textile units compliment with survey of surat’s textile unitsâ€, International Journal of Research in Finance and Marketing, Vol.1 Issue.2 June 2011.
Schutta JT. “Business performance through lean six sigma: linking the knowledge worker, the twelve pillarsâ€, Wis.: ASQ Quality Press. (2006).
Skrinjar R, Vulksic VB, Stemberger MI. “The impact of business process orientation on financial and non-financial performanceâ€, Bus.Proc. Manage. J. 14(5), 2008,pp 738-754.
Swamynathan R and Dr.Sudharani Ravindran. “A study on the Supply Chain Practices in the Garment industry with special reference to Tirupur Garment cluster in Tamilnadu†September 2008.
Velayutham V.S. “Textile industry in India : Heralding a New era ,2010†http://www.dnb.co.in, accessed on April 02 2012.
Zaheer, A., Rehman, K. U. and Khan, M. A. “Development and testing of a business process orientation model to improve employee and organizational performanceâ€. Journal of Business, vol 4(2), 2010 pp149-161.
Anbanandam R, Banwet DK & Ravishankar. Evaluation of Supply Chain Collaboration: A Case of apparel retail industry in India. International Journal of productivity and Performance management 2011; 60, 2, 82-98.
Vereecke A & Muylle S .Performance improvement through supply chain collaboration in Europe. International Journal of Operations and Production management2006; 26, 11, 1176-1198.
Mentzer JT, Min S & Zacharia ZG . The Nature of Inter firm Partnering in Supply Chain Management’. Journal of Retailing 2000; 76, 4, 549-568.
Gunasekaran A & Yusuf YY. Agile Manufacturing: Taxonomy of Strategic and Technological Imperatives. International Journal of Production Research 2002; 40, 6, 1357-1385.
Simatupang TM & Sridharan R. The collaboration index: A measure for supply chain Collaboration. International Journal of Physical Distribution &Logistics Management 2005; 35, 1, 44-62.
Ramesh A, Banwet DK & Shankar R. Modelling the enablers of supply chain collaboration. International Journal of Logistics Systems and Management 2008; 4, 6, 617-633.
Singh RK, Garg SK & Deshmukh SG. Strategy development by SMEs for competitiveness: A review. Bench. International Journal 2009; 15, 5, 525-547.
Kumar N. The power of trust in manufacturer/retailer relationships. Harvard Business Review 1996; 92-106
McGinnis M. A. and Vallorpa R. M. Purchasing and Supplier Involvement: Issues and Insights Regarding New Product Success. Journal of Supply Chain Management1999; 35(3), 4-15
Kessler E & Chakrabarti A. Innovation Speed: A Conceptual Mode of Context, Antecedents, and Outcomes. The Academy of Management Review 1996; 21, 4, 1143–1191.
Eyaa & Ntayi JMS . Collaborative Relationships, Procurement Practices and Supply Chain Performance: The Case of Small and Medium Enterprises in Uganda 2010;
Ragatz GL, Handfield, RB & Petersen KJ . Benefits Associated With Supplier Integration into New Product Development under Conditions of Technology Uncertainty. Journal of Business Research 2002; 55, 389-400.
Min S & Mentzer JT . Developing and Measuring Supply Chain Concepts’, Journal of Business Logistics 2004; 25, 1, 63–99.
Daugherty PJ, Richey RG, Roath, AS, Min S, Chen H, Arndt AD & Genchev SE .Is collaboration paying off for firms?. Business Horizons 2006; 49, 1, 61-70.
Marimuthu, KN & Mary Jessica Indian textile industry growth and development opportunities and challenges of Coimbatore region. International journal of research in Commerce, Economics and Management 2012; 2 7
Nunnally JC Psychometric Theory, Mc Grawhill, New York 1978.
Soni G & Kodali R. A critical analysis of supply chain management content in empirical research. Business Process Management Journal 2011; 17, 2, 238-266.
