The interplay of integration, flexibility and coordination: a dynamic capability view to responding environmental uncertainty

Abstract

PurposeSupply chain literature highlights that environmental uncertainty (EU) encourages firms to integrate their business strategies and develop strategic flexibility (SF). The authors’ use the dynamic capability view (DCV) to explain why the EU motivates firms to develop SF and integrate business strategies for better supply chain coordination (SCC) and enhanced performance. This study tests the role of SCC as a mediator between (1) business strategy integration (BSI) and operational performance, and (2) SF and operational performance. The study also measures the contingent effect of structural constructs on the relationship between EU, BSI and SF.Design/methodology/approachData of 356 firms drawn from the continuous innovation network (CINet) are used in this paper. Structural equation modeling (SEM) is used to test the direct, indirect and moderation hypotheses.FindingsThe paper finds that EU enhances SF and BSI. Further, BSI has a significant positive impact on SCC that drives operational performance. The paper also finds that SF has no direct impact on SCC rather it affects SCC through BSI. SCC mediates the relationship between (1) SF and operational performance, and (2) BSI and operational performance. The organization's structural factors including connectedness and formalization moderate the effect of EU on BSI and SF.Originality/valueThe paper extends debate at the interface of supply chain risk and strategy literature and provides a specific understanding of the “external-internal-external” mechanism in the context of the turbulent business environment. This mechanism helps to understand why and under what structural conditions EU (external) leads to BSI and SF (internal). Further, BSI and SF (internal) help firms to manage SCC (external) effectively that in turn improve operational performance.

Impact of information system flexibility and dynamic capabilities in building net zero supply chains

“…Second, RF emerges as a key facilitator for capacity realignment and supplier diversification, which in turn propels eco-centric supply chains. Furthermore, DAC optimizes transport activities and energy utilization (Rehman and Jajja, 2023; Yang and Gan, 2021). Third, Both RF and DAC are essential enablers of SSCF, focusing on waste reduction and conserving resources, crucial elements for achieving a SCNZ (Adomako and Ahsan, 2022; Combs et al ., 2011; Hariharan et al ., 2020).…”

“…ENY, characterized by rapid, unpredictable changes in the external business environment, plays a moderating role in the relationship between data analytics capability and sustainable supply chain flexibility (Ketkar and Sett, 2010;Rehman and Jajja, 2023). In highly dynamic environment, the value of data analytics capability becomes more pronounced as it provides organizations with timely insights, allowing them to adapt their supply chains in response to emerging sustainability challenges or opportunities (Rehman and Jajja, 2023;Teece et al, 1997). The capability to analyze vast datasets can help firms anticipate environmental shifts, such as regulatory changes or consumer demands for sustainability, and subsequently adjust supply chain operations accordingly (Yang and Gan, 2021).…”

“…We propose that ENY plays a pivotal role in shaping the relationship between RF and SSCF. In volatile settings marked by frequent, unpredictable shifts, the agility inherent to resource flexibility becomes vital, allowing firms to adjust supply chain approaches in response to evolving sustainability challenges (Ketkar and Sett, 2010;Rehman and Jajja, 2023). However, in more predictable environments, the need for immediate RF might be subdued (Wang and Rani, 2022).…”

“…The rate of transformation within the sector and marketplace dictates the cadence of challenges and prospects confronting the organization (Chen and Liang, 2023;Ketkar and Sett, 2010). Environmental Dynamism (ENY) is instrumental in sculpting the association between DAC and SSCF (Rehman and Jajja, 2023). Additionally, ENY exerts sway over the ties between RF and SSCF.…”

“…The task at hand encompasses the development and JEIM 37,3 administration of supply chains that possess the ability to adapt to disruptions promptly (Singh et al, 2019(Singh et al, , 2023, shifts in the market, and new rules pertaining to sustainability, all the while striving to minimize environmental repercussions and foster ethical conduct (Edwin Cheng et al, 2022;Bai et al, 2020). Researchers such as Bag and Rahman (2023) and Rehman and Jajja (2023) have emphasized the need for supply chains to be environmentally and socially responsible while maintaining flexibility to respond to market dynamics. Studies by Bag and Rahman (2023) and Bai et al (2020) have explored the dimensions of SSCF, incorporating considerations such as circular economy, environmental uncertainty and capabilities.…”