The influence of variability and strategy of service supply chains on performance

This paper aims to empirically examine how customer-induced variability, process variability, supply chain strategy, and business performance interrelate in a service firm context. Quantitative data were collected via a questionnaire-based survey. A total of 376 organizations responded and 313 responses were usable. This represents an adjusted response rate of 10.43 %. The survey results were analyzed by factor analysis, ANOVA, and regression models. The results provided the basis for testing the proposed model. They indicated a positive association between customer-induced variability and process variability. Since firms have different levels of variability, each firm will have a different strategic focus. The emphasis of that strategy will, in turn, result in greater flexibility and customer satisfaction. More specifically, firms with high and low levels of variabilities are suggested to focus on the cost- and flexibility-oriented strategies, respectively.