Supply chain flexibility in dynamic environments

Abstract

Purpose: To analyse the relationship between environmental dynamism and Supply Chain Flexibility (SCF); and to evaluate if two dynamic capabilities, i.e. Operational Absorptive Capacity (OAC) and Organisational Learning (OL), are necessary competences for firms to develop such a responsive supply chain strategy as flexibility. Design/methodology/approach: Hypothesised relationships are tested with survey data from 302 Spanish manufacturing firms using structural equations modeling. Findings: Environmental dynamism is positively associated with both OAC and OL; and both dynamic capabilities enable SCF. We also find that the relationship between environmental dynamism and SCF is partially mediated by both dynamic capabilities. Research implications: The study contributes to the literature, for example, by determining when it is advantageous to develop SCF; by specifying what capabilities a firm needs to develop to align SCF with the environment; and, by opening the black box that is the relationship between the environment and SCF. Practical implications: Managers should develop SCF via OAC and OL when they detect a high degree of environmental dynamism. Knowing when this is necessary relies on a good understanding of the environment. OAC is found to be a stronger enabler of SCF than OL. The findings provide managers with an insight into why some firms are able to develop more effective responses to dynamic environments than others. Originality/value: One of only a limited number of studies to adopt a dynamic capabilities approach to supply chain management. Prior literature has shown dynamic capabilities can aid in developing strategic, structural, and operational flexibility. We extend this literature by showing that OAC and OL have an effect on SCF.

RETRACTED: Ambidexterity and IT competence can improve supply chain flexibility? A resource orchestration approach

“…Finally, the last theoretical implication shows that SC ambidexterity and IT competence are antecedents and facilitators respectively of SCF. The study thus responds to the call by Rojo et al (2018) for research that develops a deeper understanding of the antecedents of SCF.…”

“…Ambidexterity is understood to be the ability to make the most of existing knowledge while simultaneously generating new knowledge (Levinthal and March, 1993;March, 1991) with the intent of achieving a competitive advantage (Turner et al, 2013). Since the concepts of ambidexterity and absorptive capacity have been widely used in the SCM literature 5 (eg Patel et al, 2012;Kristal et al 2010;Rojo et al, 2016;Rojo et al 2018), and these concepts may have some similarities in their definitions, we have summarized in the Appendix A the main definitions given for both concepts with the object of differentiating them.…”

“…That SCF precedes firm benefits and is a source of competitive advantage has been adequately demonstrated, so research must now focus on identifying which strategies and mechanisms produce these results (Rojo et al, 2018). Prior research has identified some antecedents of SCF such as supplier development, supplier partnering, JIT purchasing (Scannell et al, 2000), operational absorptive capacity, organisational learning (Rojo et al, 2018), information sharing (Schmenner and Tatikonda, 2005) and information systems (White et al, 2005). Nevertheless, these type of studies are scarce and did not provide a solid theoretical framework that explain how SCF is developed.…”

“…Third, the data used are transversal, so that when analyzing SCF, the possibility exists that a momentary situation in an organization will be analyzed but not long-term capability for flexibility. Fourth, future research should include other variables that precede SCF (such as organizational learning and operational absorptive capacity) (Rojo et al, 2018) so that a more exhaustive picture of the enablers of SCF can be developed. Finally, future studies should analyze the interplay between exploration and exploitation not only at firm level or SC level, individually, but at both levels simultaneously (Stettner and Lavie, 2016).…”

“…While extensive, the research has so far focused on the benefits a firm reaps by developing a flexible SC; the positive effect of a flexible SC on firm performance is widely recognized (Ngai et al 2011;Chavez et al, 2017). However, a significant gap exists in the literature: few studies offer a deeper understanding of the strategies and practices that facilitate SCF (Rojo et al, 2018).…”