Effects of Supply Chain Strategy (Lean, Agile, Hybrid) on Saudi Firm Performance: Exploring Mediating Role of Supply Chain Integration

Abstract

Competing in dynamic and competitive markets requires firms to strengthen their supply chain strategies to improve firm performance. The study investigated the impact of supply chain strategy, lean, agile and hybrid, on firm performance in Saudi Arabia. The mediating role of supply chain integration was also determined. Data was collected from manufacturing firms in Saudi Arabia. Employees working in supply chain operations, warehouse operations and logistics planning were targeted through purposive sampling. Reliable measurement items from the literature were used to develop the questionnaire, and a sample of 110 complete responses was obtained. Structural equation modelling was used to analyze the structural linkages. The findings revealed that the agile supply chain significantly impacts Saudi firms' performance out of the three strategies. Supply chain integration significantly mediates the relationship between agile and lean supply chains and firm performance. Therefore, Saudi firms put greater emphasis on the agile supply chain strategy's responsiveness, reliability and speed to improve firm performance. The research provides valuable and significant implications for supply chain management and practitioners to critically evaluate their supply chain strategy and capabilities to enhance supply chain responsiveness for improving firm performance.