The literature on ‘‘competitive priorities’’ forms the basis for the performance variable included in our study. This works suggests that four ‘‘priorities’’ are directly tied to supply chain performance. Speed refers to the time it takes from initiation to completion of an order fulfillment process in the supply chain (e.g., Mentzer et al., 2001). The focus of speed is the ability to deliver on time, according to a set schedule. In such cases, the organization may not have the least costly, greatest flexibility, or the highest quality process, but is able to compete on the basis of reliably delivering products when promised (Ward et al., 1998).
Quality, cost, and flexibility, in our study, are tied to the order fulfillment process itself, not directly to the product or service resulting from it. Supply chains that stress quality-based operations continually focus on improving their supply chain processes to increase product reliability and customer satisfaction (Youndt et al., 1996). Cost-driven supply chains strive to create customer value by either reducing costs or increasing benefits in the supply chain equation (i.e., value = benefits/costs) (Ward et al., 1998). Flexibility refers to a supply chain’s agility, adaptability, and responsiveness to the needs of its users (Youndt et al., 1996).