Causal linkages in supply chain management: An exploratory study of North American manufacturing firms

In this paper we investigate the key causal linkages in supply chain manage ment. We propose a conceptual framework and test this framework on data fro m 215 North American manufacturing firms using structural equation modeling techniques. Three major research issues are addressed in this study: Do so urcing decisions affect the degree to which firms achieve manufacturing goa ls of cost, flexibility, dependability, and quality? Does the degree of man ufacturing goal achievement lead to higher customer responsiveness? Does th e degree of manufacturing goal achievement lead to higher internal manufact uring performance? The study examines the relationship among sourcing decis ions, manufacturing goals, customer responsiveness, and manufacturing perfo rmance. The results support the notion that an integrated supply chain invo lves aligning sourcing decisions to achieve manufacturing goals that are se t to respond favorably to the needs of customers.