A Quantitative Model of Supply Chain Innovativeness as a Disruption Management Strategy in the Textile Industry

Author(s)

Shaheen Sardara, Young Hae Lee

Author affiliation

Department of Industrial and Management Engineering, Hanyang University, South Korea

Abstract

Supply chain innovativeness (SCI) is the tendency of supply chain network towards non-stop creation and adoption of innovations. This tendency has a direct effect on both predictable and unpredictable disruptions. To manage these disruptions, resilient companies utilize innovativeness as a strategic tool. In contrast, failure to understand the market impact of innovation causes the companies to ignore innovativeness as compared with routine objectives of supply chain management (SCM). Key objective of this research is to propose a quantitative model to measure and evaluate SCI as a disruption management strategy in the global outsourcing environment. The model is based on three steps (a) identification of eleven dimensions of SCI, (b) integration of factors within each dimension and development of quantitative model, and (c) recognition of SCI as a disruption management strategy. The model results show that the innovative supply chains have flexibility to defend disruptions and ability to return to original shape even after severe disruptions. In contrast, non-innovative supply chain networks easily deform in the presence of supply chain disruptions. The combined effect of these eleven dimensions of SCI has a direct connection with both predictable and unpredictable disruptions. This model is used to analyze the textile industry but it could be adopted in other types of supply chain research after related adjustments.

Keywords

Quantitative model; supply chain innovativeness; disruptions; outsourcing; textile industry