Changing perspective of capabilities in the dynamic supply chain era

Abstract

Purpose A review of the literature reveals that previous research on capabilities has been limited to static capabilities and have largely been firm‐centric, which neglect today's evolving supply chain environment. To address this shortcoming, this paper aims to explore dynamic supply chain capabilities (DSCCS) as a path to achieving sustainable competitive advantage. Design/methodology/approach Logistics and supply chain literature is reviewed to provide a foundation for introducing a model of DSCCS driving competitive advantage. Propositions for future research are presented based upon the theoretical model. Findings The need to continuously renew boundary spanning supply chain capabilities may be facilitated by the presence of a supply chain orientation and a learning orientation found across the multiple partners. Research limitations/implications Supply chain organizations exist in a continually evolving environment with the best‐performing firms often being characterized as agile and continually improving. The dynamic capabilities perspective provides a theoretical foundation that may be used to better understand and predict the success of supply chain firms. The work presented here is conceptual and empirical examination of the propositions should occur before any broad generalization can be drawn. Practical implications Long‐term organizational success may be facilitated by continuous renewal and creation of new static capabilities through the use of DSCCS. Originality/value The paper demonstrates that dynamic capabilities may be extended beyond the traditional single‐firm view to exist across the relationships developed by multiple organizations in a supply chain.