Supply chain agility in third-party logistics providers: its relationship with institutional and cultural geographical traits in a developing country
Loading...
Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Economic and Administrative Sciences
Abstract
The purpose of this paper is to investigate the relationship between geographical traits consisting
of institutional traits and cultural traits, and supply chain agility in third-party logistics providers.
Design/methodology/approach – A theoretical model was developed and assessed through a structured
questionnaire survey using cross-sectional data from 170 third-party logistics providers registered in Uganda.
To validate the suggested model, data were analysed using exploratory factor analysis, correlations and
regressions.
Findings – Correlation results revealed that all institutional and cultural geographical traits in the model, i.e.
infrastructural frameworks, regulatory frameworks, organisational culture and national culture are positively
and significantly associated with supply chain agility. However, a further analysis using regression revealed
that regulatory framework and organisational culture are the only significant predictors of supply chain agility
and together, all the four traits account for 28.1% variance in supply chain agility.
Research limitations/implications – This study applies the institutional theoretical framework to provide
an empirical understanding of the role of institutional and cultural factors in supply chain management
practice. Furthermore, it confirms and expands on the existing theories about supply chain agility.
Practical implications – The findings provide firm ground for managerial decisions regarding emphasis on
external factors in building firms’ supply chain agility. Managers should scan the macro-environment and
make conscious firm decisions regarding institutions and culture in certain geographical locations. The host
countries should also be aware of their role in building firms’ supply chain agility.
Originality/value – Distinctive from the literature on antecedents of supply chain agility, which
predominantly focuses on the firm and supply chain capabilities, this study utilises the paradigm of
institutional fit to empirically show how managers in a developing country wishing to build supply chain
agility should not only focus on their supply chains and internal operations, but go beyond and consider
geographical traits when making firm location and/or operational decisions for certain geographical contexts
in order to achieve fit.
Description
Keywords
Geographical traits, Supply chain agility, Institutional traits, Cultural traits, Third-party logistics providers
Citation
Tukamuhabwa, B. R., Mutebi, H., & Kwagala, R. (2021). Supply chain agility in third-party logistics providers: its relationship with institutional and cultural geographical traits in a developing country. Journal of Economic and Administrative Sciences. DOI 10.1108/JEAS-11-2020-0194