Asif Salam 

ABSTRACT

The purpose of this paper is to develop and test a conceptual model which extends the central paradigm of the strategy literature in supply chain environment to foster a better understanding of the elements characterizing supply chain uncertainty and strategic decisions that lead to supply chain structural development and performance.

In line with the previous research, this paper builds on the work of Fisher (1997) and Lee (2002) by empirically investigating the links between strategy, structure, and performance in fast moving consumer goods sector. The current study contributes to the empirical efforts in exploring the impact of supply chain uncertainty on the relationships between strategy and structure leading to the greater levels of performance. Increasingly supply chains are vulnerable to various kinds of unpredictable disruptions. These uncertainties are at times natural e.g., tsunami, hurricanes, volcanic disruptions, or earthquakes and at times man-made e.g., terrorism. Unfortunately, despite these threats of various types of uncertainties so far there were no systematic studies carried out to understand the impact of supply chain uncertainty on supply chain strategy, structure and performance. Hence, the current study has been designed to fill the void. In the current study, numerous types of uncertainties are addressed by capturing them under two types of uncertainties: Supply and Demand.

This paper seeks to advance our understanding of the application of strategy-structure-performance (SSP) paradigm in supply chain environment. In line with the thinking of Bowersox (1999 and 2002) the current study is designed to broaden the scope of SSP paradigm by incorporating the impact of supply chain uncertainty. This framework highlights that the impact of supply chain uncertainty on supply chain strategy, structure and firm’s performance has never been studied in one single model. Hence, the current study will contribute by addressing that gap in the extant literature. Finally, the conceptual model has been tested using structural equation modelling methodology to verify the conceptual links.