Effect of supply chain resilience on firm’s sustainable competitive advantage: a dynamic capability perspective

Abstract

Supply chain disruption caused by environmental uncertainty makes it more difficult for firms to obtain sustainable competitive advantages (SCA). Based on the perspective of dynamic capability, this study explored the effect of three dimensions of supply chain resilience (SCR) (proactive capabilities, reactive capabilities and supply chain design quality) on SCA. In addition, we further adopted operational vulnerability (OV) as a mediated variable to construct a conceptual framework and propose research hypotheses. The theoretical hypotheses were empirically developed based on a survey of 305 firms in China’s manufacturing industry and subsequently tested. Our findings indicate that taking proactive action, properly configuring supply chain systems, and developing rapid reaction capabilities to recover from disruptions provide companies an opportunity to improve and to obtain SCA. Finally, the paper offers managers a management framework and dynamic strategy with which to develop SCR and alleviate the negative impact of OV, thus contributing to a firm’s SCA.