Building up Dynamic Capabilities for Sustainable growth under Supply Chain Disruptions
Keywords:
Supply Chain Dynamic Capabilities, , Sustainable supply chain management practices, Social-Performance, Environmental-Performance, Triple- Bottom LineAbstract
The recent technological advancements, worldwide business networks, market dynamism etc. create threats for Supply chain and produce inertia to organization’s survival and growth. The disruptive forces and pressure from stakeholders compel the organization to implement sustainable practices. These sustainable practices need to be oriented towards market dynamism and firms require to build up capabilities in order to sustain sustainability and produce results that are socially and ecologically sustainable. The paper first discusses the linkage between the Sustainable Supply chain practices and Dynamic Capabilities. Secondly a framework is developed for measurement of Dynamic capabilities. The paper identifies five constructs for measurement of dynamic capabilities- Knowledge absorption capacity, Innovation ability, Demand Oriented perception ability, Renovation capacity and Social Network enhancement ability. Finally the impact of Dynamic Capabilities on the performance of the firm in terms of three order sustainability i.e. monetary, ecological and social perspective is discussed. The proposed framework is analyzed through an empirical survey on automobile and automotive industries. Structural Equation Modelling is used for data analysis and interpretation. The research provides an academic framework for linkage of Dynamic capabilities with SSCMP and T- BL performance. It also helps in business practices by providing a blueprint for organizations’ adaptation to dynamic conditions and sustainable performance.
References
Ahi, P., Searcy, C., 2015. An analysis of metrics used to measure performance in green and sustainable supply chains. J. Clean. Prod. 86, 360 – 377.
Beske, P., Land, A., Seuring, S., 2014. Sustainable- supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature. Int. J. Prod. Econ.152, 131 – 143.
Carter, C. R., Easton, P. L., 2011. Sustainable- supply chain management: evolution and future directions. Int. J. Phys. Distrib. andLogist. Manag. 41 (1), 46-62.
Chen, I.J., Paulraj, A., 2004 towards a theory of supply chain management: the determinants and measurements. J. Opera. Manag. 22 (2), 119 – 150.
Das D, The impact of Sustainable- supply chain management practices on firm performance: Lessons from Indian organizations, Journal of Cleaner Production (2018), doi:10.1016/j.jclepro.2018.08.250.
Ciccullo, F., Pero, M., Caridi, M., Gosling, J., & Purvis, L. (2018). Integrating the environmental and social sustainability pillars into the lean and agile supply chain management paradigms: A literature review and future research directions. Journal of Cleaner Production, 172, 2336-2350.
Elkington, J., 2004. Enter the triple bottom line. In: Henriques, A. and Richardson, J. (Eds), The Triple Bottom Line: Does It All Add Up?,Earthscan, London, 1 – 16.
Esfahbodi, A., Zhang, Y., Watson, G., 2016. Sustainable- supply chain management in emerging economies: Trade-offs between environmental and cost performance. Int. J. Prod. Econ. 181, Part B, 350 – 366.
.
Gerbing, D.W., Anderson, J.C., 1988. An updated paradigm for scale development incorporating unidimensionality and its assessment. J. Markt. Res. 25 (2), 186 – 192.
Giovanni, P. De., 2012. Do internal and external environmental management contribute to the triple bottom line? Int. J. Oper. Prod. Manag. 32 (3), 265 – 290.
Gupta, S. and Palsule-Desai, Omkar D., 2011. Sustainable- supply chain management: Review and research opportunities. IIMB Manag. Rev. 23 (4), 234 – 245.
Hair Jr., J.F., Black, W.C., Babin, B.J., Anderson, R.E., Tatham, R.L., 2009. Multivariate data analysis, 6th ed., Pearson Education, New Delhi.
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., & Winter, S. G. (2009). Dynamic capabilities: Understanding strategic change in organizations. John Wiley & Sons.
Hong J, Zhang Y, Ding M, 2017. Sustainable- supply chain management practices,supply chain dynamic capabilities, and enterprise performance, Journal of Cleaner Production (2017)
Janeiro, L., Patel, M.K., 2015. Choosing sustainable technologies: Implications of the underlying sustainability paradigm in the decision making process. J. Clean. Prod., 105, 438 – 446.
K?lk?s, S., 2016. Sustainability-oriented innovation system analyses of Brazil, Russia, India,China, South Africa, Turkey and Singapore. J. Clean. Prod., 130, 235 – 247.
Krause, D.R., Vachon, S., Klassen, R.D., 2009. Special topic forum on sustainable supply chainmanagement: Introduction and reflections on the role of purchasing management. J. Supply Chain Manag. 45 (4), 18 – 25.
Li, S., Rao, S.S., Raghu-Nathnan, T.S., Raghu-Nathnan, B., 2005. Development and validation of a measuring instrument for studying supply chain management practices. J. Oper. Manag. 23(6), 618 – 641.
Liu, X., Yang, J., Qu, S., Wang, L., 2012. Sustainable production: Practices and determinant factors of green supply chain management of Chinese companies. Busi. Strat. the Environ. 21(1), 1-16.
Mani, V., Gunasekaran, A., Papadopoulos, T., Hazen, B., Dubey, R., 2016a. Supply chain social sustainability for developing nations: Evidence from India. Resour.,Conserv. Recycl. 111, 42 –52.
Mani, V., Agarwal, R., Gunasekaran, A., Papadopoulos, T., Dubey, R., Childe, S.J., 2016b. Social sustainability in the supply chain: construct development and measurement validation.Ecological Indicators. 71, 270 – 279.
Mathivathanan, D., Kannan, D., &Haq, A. N. (2018). Sustainable supply chain management practices in Indian automotive industry: A multi-stakeholder view. Resources, Conservation and Recycling, 128, 284-305.
McGuire, J.B., Sundgren, A., Schneeweis, T., 1988. Corporate social responsibility and firm financial performance. The Acad. Manage. J., 31 (4), 854 – 872.
Mitra, S., Datta, P.P., 2014. Adoption of green supply chain management practices and their impact on performance: an exploratory study of Indian manufacturing firms. Int. J. Prod. Res. 52 (7), 2085 – 2107.
Montabon, F., Pagell, M., Wu, Z., 2016. Making sustainability sustainable. J. Supply Chain Manag. 52 (2), 11 – 27.
Pagell, M., Wu, Z., 2009. Building a more complete theory of sustainable supply chain
management using case studies of 10 exemplars. J. Supply Chain Manag. 45 (2), 37-56.
Pullman, M.E., Maloni, M.J., Carter, C.R., 2009. Food for thought: Social versus environmental sustainability practices and performance outcomes. J. Supply Chain Manag. 45 (4) 38-54.
Revilla, E., & Saenz, M. J. (2017). The impact of risk management on the frequency of supply chain disruptions. International Journal of Operations & Production Management.
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P., Saaeidi, S.A., 2015. How does corporate social responsibility contribute to firm financial performance? The mediating role of competitiveadvantage, reputation and customer satisfaction. J. Busi. Res. 68 (2), 341 – 350.
Saenz, M. J., Koufteros, X., Touboulic, A., & Walker, H. (2015). Theories in sustainable supply chain management: a structured literature review. International Journal of Physical Distribution & Logistics Management.
Seuring, S., Müller, M., 2008. From a literature review to a conceptual framework for
Sustainable- supply chain management. J. Clean. Prod. 16 (15), 1699-1710.
Sheu, J.B., Chen, Y., 2014. Transportation and economies of scale in recycling low-valuematerials. Transp. Res. Part B, 65, 65 – 76.
Tan, K.C., Kannan, V.R., Handfield, R.B., Ghosh, S., 1999. Supply chain management: an empirical study of its impact on performance. Int. J. Oper. Prod. Manag. 19 (10), 1034 – 1052.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Vachon, S., Mao, Z., 2008. Linking supply chain strength to sustainable development: a country level analysis. J. Clean. Prod. 16 (15), 1552-1560.
Vickery, S.K., Jayaram, J., Droge, C., Calantone, R., 2003. The effects of an integrative supply chain strategy on customer service and financial performance: an analysis of direct versus indirect relationships. J. Oper. Manag. 21 (5), 523 – 539.
Walker, H., Seuring, S., Sarkis, J., Klassen, R.D., 2014. Sustainable operations management: recent trends and future directions (Guest editorial). Int. J. Operations Prod. Management 34 (5).
Wang, C. L., & Ahmed, P. K. (2007). Dynamic capabilities: A review and research agenda. International journal of management reviews, 9(1), 31-51.
Winter, S. G. (2003). Understanding dynamic capabilities. Strategic management journal, 24(10), 991-995.
Wittstruck, D., Teuteberg, F., 2012. Understanding the success factors of Sustainable- supply chain management: Empirical evidence from the electrics and electronics industry. Corp. Soci. Respon. Environ. Management 19 (3), 141-158.
World Commission on Environment and Development (WCED). 1987. Our Common Future.Oxford University Press, Oxford and New York.
Wu, T., Shen, H., Zhu, C., 2015. A multi-period location model with transportation economiesof-scale and perishable inventory. Int. J. Prod. Econ.169, 343 – 349.
Yang, M.G., Hong, P., Modi, S.M., 2011. Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms. Int. J. Prod.Econ. 129 (2), 251-261.
Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of management review, 27(2), 185-203.
