Antecedents and enablers of supply chain agility and its effect on performance: a dynamic capabilities perspective

TLDR

Supply chain agility is defined by supply‑side (production and supply management) and demand‑side (distribution and demand management) competencies, grounded in the resource‑based view and dynamic capabilities theory. The study investigates these supply‑ and demand‑side competencies as the building blocks of agility and evaluates how agility influences operational performance and mediates the competence‑performance link. Using data from 121 supply‑chain professionals, the authors model agility’s effect on performance, test process compliance as a moderating enabler, and examine the mediating role of agility between competencies and performance. The results yield implications for both theory development and practical supply‑chain and production management.

Abstract

This paper investigates the fundamental building blocks of supply chain agility, which are conceptualised as supply- and demand-side competence. While the former refers to production and supply management related activities, the latter refers to distribution and demand management related activities. The model further assesses the influence of supply chain agility on operational performance, as well as its mediating role in the relationship between supply- and demand-side competence and performance. Within this framework, process compliance, i.e. how well supply chain management processes are internally executed by the firm's employees, is viewed as an enabler (moderator) on the relationship between supply chain competencies and supply chain agility. Theoretical substantiation is provided by the resource-based view of the firm augmented with the dynamic capabilities perspective. The model is tested with data from 121 supply chain management professionals. Implications for both academic theory development and supply chain and production management practice are provided.