Achieving competitive advantage through technology-driven proactive supply chain risk management: an empirical study

Abstract

Whilst there has been previous work focused on the role of technologies in enhancing supply chain risk management and, through such an enhancement, increased competitive advantage, there is a research gap in terms of understanding the links between external institution pressures and internal adoption factors. We use institutional theory (IT) and the resource based view (RBV) of the firm to address this gap, developing a framework showing how a proactive technology-driven approach to supply chain risk management, combining both external with internal factors, can result in competitive advantage. We validate the framework through analysis of quantitative data collected via a survey of 218 firms in the manufacturing and logistics industry sectors in India. We specifically focus on the technologies of track-and-trace (T&T) and big data analytics (BDA). Our findings show that firms investing in T&T/BDA technologies can gain operational benefits in terms of uninterrupted information processing, reduced time disruptions and uninterrupted supply, which in turn gives them competitive advantage. We add further novelty to our study by demonstrating the moderating influences of organisational culture and flexibility on the relationship between the technological capabilities and the operational benefits.

Developing resilient and robust supply chains through data analytic capability

“…Even though all organizations in our sample experienced longer lead times by suppliers, higher costs, and fewer available employees, some organizations experienced a strong negative impact on their competitive advantage while others were able to maintain competitive advantage, or even strengthen it. Organizations whose competitive advantage was more negatively impacted reported a more negative supply chain performance and longer lead times in particular, highlighting the importance of supply chain resilience and robustness for competitive advantage and supporting the notion that superior supply chain performance can be a source of competitive advantage (Jerome et al. , 2023; Kırılmaz and Erol, 2017).…”

“…Resilient capabilities (both proactive and reactive) are a source sustainable competitive advantage, because of their critical capability to produce a sustainable strategic plan and better results than less resilient competitors (Hamel and Välikangas, 2003; Ponomarov and Holcomb, 2009). Organizations are therefore recognizing the importance of supply chain management and supply risk management capabilities (Jerome et al. , 2023; Kırılmaz and Erol, 2017; Kwak et al.…”

“…, 2020). Consequently, risk management capabilities have become increasingly important for organizations as a source of competitive advantage (Jerome et al. , 2023; Kırılmaz and Erol, 2017; Kwak et al.…”