The Influence of Knowledge Management Capacities on Pharmaceutical Firms Competitive Advantage: The Mediating Role of Supply Chain Agility and Moderating Role of Inter Functional Integration

Abstract

This study investigates the factors such as knowledge management capacities and their positive influence on firm competitive advantage or the supply chain agility of the firm and the underlying mechanisms (supply chain agility) that facilitate the firm's performance and leads to firm competitive advantage. It also explores the moderating role of inter-functional integration. We have collected the data from the 308 supply chain managers of pharmaceutical firms in Pakistan and questionnaires were used for data collection with multi-item scales already developed and validated. The findings suggest that knowledge management capacities significantly influence a firm's competitive advantage or supply chain agility. The supply chain agility fully mediates between absorptive capacity, transformative capacity, and firm competitive advantage. Further, supply chain agility partially mediates between inventive capacity and firm competitive advantage. Meanwhile, inter-functional integration moderates the relationship between supply chain agility and firm competitive advantage, with their positive relationship strengthening when inter-functional integration is high. The study provides empirical evidence that knowledge management capacities (such as absorptive capacity, transformative capacity, and inventive capacity), supply chain agility, and inter-functional can be important factors in improving firm performance.