The direct and indirect effect of ICT on hybrid lean-agile supply-chain performance: An empirical study of automotive industry in an emerging market

Abstract

Purpose – The purpose of this study was to investigate the direct and indirect effect of information and communication technology (ICT) on hybrid lean-agile supply-chain performance (HSCP) of the automotive companies. Design/methodology/approach –A conceptual framework developed based on the literature was proposed and tested using questionnaires, which were filled through face-to-face in-depth interviews. A mixed methods approach was used to obtain greater insights and better understanding of the research relationships. The focus of this research is the hybridized performance, in terms of leanness, agility and leagility of the automotive industry supply-chains in Egypt as an example of an emerging market. The target population was 101 organizations in the Egyptian automotive industry throughout its three main sub-sectors; namely manufacturers of auto-feeding and automotive industries and CBU distributors (i.e., multiple nodes), which were covered through census. Structural Equation Modeling was used to examine the proposed relationships. Findings – The results showed that ICT employment positively and significantly affects both supply-chain integration (SCI) and hybrid SCP, SCI positively and significantly affects supply-chain information sharing (SCIS), and SCIS positively and significantly affects HSCP in terms of mass-customization and postponement. The three sub-sectors are using a blended supply-chain strategy that hybridizes different attributes of each approach according to the position of the SC node. Originality/value – It conceptually adds to the active debate on the applicability of the blended lean-agile SC strategy by integrating two main streamlines of management research; namely the leagility approach and the hybridized lean-agile manufacturing system, into one new hybridized approach. To the best of our knowledge, this is the first research paper that empirically investigates the direct and indirect impact of ICT on hybrid lean-agile SCP of multiple nodes in an automotive market. It is the first study that maps the Egyptian automotive industry as an example of an attractive emerging market yet unexplored context of SCM research. It contributes to the contemporary management research literature that considers ICT and SCM as two interdependent fields. Practical implications – The results of this research give different automotive supply-chain members in Egypt greater insights on how they can effectively/efficiently compete and maintain sustainable development in a dynamic globalized environment. Furthermore, this study highlights the importance of investing in ICT, which facilitates end-to-end SCI and SCIS, in addition to, choosing the appropriate aspects of hybridized supply-chain strategy in terms of leanness, agility and leagility based on the organization's position across its SC.