The purpose of this paper is to investigate the mediating role of process simplification on the relationship between process integration and upstream supply chain flexibility in Indian automotive organizations.
The three-step mediation analysis was performed using SPSS macro PROCESS to assess the mediating role of process simplification on the relationship between process integration constructs: top management commitment and supplier relationship; and upstream supply chain flexibility.
The results indicate a complete mediation effect of process simplification between supplier relationship and upstream supply chain flexibility, while partial mediation effect is noticed between top management commitment and upstream supply chain flexibility.
For Indian automotive managers, the study suggests that for improving the upstream supply chain flexibility, organizations must have a strategy towards improving the simplification of supply chain processes by upgrading technology and providing training to their suppliers. This understanding will help the automotive managers to simplify their upstream supply chain processes for gaining competitive positioning and maximizing the organizational profit.
This study has considered the mediating role of process simplification (a relatively less studied variable) specifically in the context of its impact on upstream supply chain flexibility. Also, the presented study explores this role in the Indian automotive domain which further enhances its value for both practitioners and researchers alike.
