Assignment 5 – Path Analysis

Now that you are somewhat familiar with regression and path analysis I want to begin giving you some additional background on the models. Read the information on Triple-A Supply Chain Management and complete path analysis at the end.

Triple-A Supply Chain Management

Supply chains are value chains extending from suppliers’ supplier to ultimate customers. Supply chain managers work to integrate and coordinate the production, purchasing, marketing, logistics, and information generation and sharing functions of their individual organizations with those of their supply chain partners.

In the October 2004 issue of H arvard B usiness R eview , Hau L. Lee proposed that great supply chains are agile, adaptable, and aligned and describes those chains as "Triple-A" supply chains. Supply chain partners must: 1) be agile in response to changes in customer demands (Agility), 2) be adaptable in response to systemic changes in markets, and 3) exhibit the ability to align business processes with supply chain partners throughout the supply chain. Lee implies that such agility, adaptability, and alignment on the part of the supply chain and its partners will yield improved supply chain performance and organizational performance. Triple-A supply chains will better supply and service the ultimate customers of the supply chains and partnering organizations will experience improved organizational performance (financial and marketing).

Data from a national sample of 132 supply chain professionals were collected for the purpose of assessing the impact of agility, adaptability, and alignment on supply chain performance and organizational performance as displayed in Figure 1.

Organizational Performance

Supply Chain Performance

Alignment

Adaptability

Agility

Figure 1 -

Triple-A Supply Chain Performance Model

Instructions:

1. Load the AAA_SCP_ORP.sav data file into SPSS.
2. Complete the following two regressions.

   Regression	Dependent Variable	Independent Variables
   1	Supply Chain Performance	Agility, Adaptability, Alignment
   2	Organizational Performance	Supply Chain Performance

3. Insert the betas on the arrows with significance levels (** sig. at .01 level; * sig. at .05 level; ns non-significant) in the boxes on the arrows and the R ² values in Figure 2.
   

   Alignment

   Adaptability

   Agility

   
   

   R ² = 0.226

   beta = .420**

   R ² = 0.503

   
   

   beta = .475**

   beta =.028 ns

   Organizational Performance

   
   

   Supply Chain Performance

   
   

   beta = .310**

   
   

   Figure 2 -

   Triple-A Supply Chain Performance Model Results

4. ---

   Answer the following questions related to the R ² values.
   1. What percent of the variation in organizational performance is explained by the variation in supply chain performance?
   2. What percent of the variation in supply chain performance is explained by the combined variation of agility, adaptability, and alignment?
5. Answer the following questions related to the direct effects of agility, adaptability, and alignment on supply chain performance. Remember, if the beta is significant (** or *), there is a direct effect.
   1. Does agility directly affect supply chain performance?
   2. Does adaptability directly affect supply chain performance?
   3. Does alignment directly affect supply chain performance?
6. Answer the following questions related to the indirect effects of agility, adaptability, and alignment on organizational performance through supply chain performance. Remember, if both betas are significant (** or *), there is an indirect effect.
   1. Does agility indirectly affect organizational performance through supply chain performance?
   2. Does adaptability indirectly affect organizational performance through supply chain performance?
   3. Does alignment indirectly affect organizational performance through supply chain performance?
7. Which of the three components (agility, adaptability, and alignment) should managers adopt if they wish to improve supply chain performance and organizational performance?

Price: $10.66

Solution: The downloadable solution consists of 4 pages, 666 words and 36 charts.
Deliverable: Word Document