Causal Relationship between Supply Chain Relationship and Product Architecture for Strengthening Supply Chain Competence

Sang Hyun Lee, Jinhan Park · Journal of Korea Service Management Society · 2019

The purpose of this study is to develop a comprehensive model that promotes understanding among supply chain firms, product structure, and supply chain competence. It can serve as a basis for understanding the role of the product structure that has been excluded from discussing supply chain competence. This study collected samples of 101 companies from domestic automobile parts companies and tested the causality by using PLS analysis. As a result, the relationship between firms in supply chain has a direct positive effect on the supply chain robustness and flexibility. Also, the relationship between firms in supply chain has a direct effect on the modularization of product structure, and the modular product structure positively affects supply chain robustness and flexibility.BR As a result of the mediation effect analysis, the modular product structure appeared to be a factor that mediates supply chain relationship and supply chain flexibility and robustness. In order to cope with the rapidly changing environment, this study shows that how the change to a modular product structure that is advantageous to cope with environmental change through the cooperation among the collaborating companies in the supply chain is advantageous. Supply chain collaboration will provide an opportunity to deepen the understanding of the meaning of the product structure in the causal relation between the inter-firm relations and the supply chain competence.BR

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