The role of absorptive capacity within supply chain quality integration

Abstract

Purpose There is a consensus suggesting that the theoretical underpinning associated with supply chain quality management practices remain evolutionary to current thinking. Therefore, this study aims to explore how absorptive capacity (AC) supports supply chain quality integration (SCQI) by building product and process quality within a supply chain (SC). Design/methodology/approach A comparative case study of global pharmaceutical manufacturers in a developing market was undertaken. A two-round qualitative research method was designed to collect data through 54 semi-structured interviews with pharmaceutical managers and senior managers. Findings The results demonstrate that AC is essential to the development of SCQI because of its ability to use valuable strategic and operational knowledge, which is important when improving consistent internal product and process quality, along with establishing a robust SC design. The authors found that AC enables companies to design their quality and continuously improve their products and processes among their SC members. Research limitations/implications The authors acknowledge that these sets of findings are difficult to generalise to other sectors, however, the authors are confident that they can be extrapolated to other companies in the pharmaceutical industry. Practical implications The study develops a framework to support practitioners and decision makers to leverage their AC towards facilitating their SCQI practices. Originality/value This study explains the role of the AC process in relation to SCQI practices, in the context of the pharmaceutical SC. The study profiles the characteristics of dynamic capabilities to increase the companies’ competencies, processes and resources.

Delineating interorganizational dynamic capabilities: A literature review and a conceptual framework

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The 4Rs supply chain resilience framework: A capability perspective

“…Organizational resilience is a strategic imperative to thrive in today's dynamic and interconnected world (Alkalha et al, 2019). It is noticeable that many manufacturing firms had to implement manufacturing-level strategies to adopt production changeover caused by the pandemic to maintain their SC resilience and thus survive (Amui et al, 2017).…”

Exploring organizational learning and experimental logistics development at the global fashion retailer H&M

“…For instance, based on Zahra and George's (2002) processes, Alkalha et al. (2019) explored how a company's absorptive capacity can improve supply chain quality, and Saenz et al. (2014) confirmed a positive relationship between absorptive capacity and supply chain innovation and efficiency.…”