Agility in supply chains and operational performance outcomes: investigating the contingent influence of supply uncertainty and product complexity

Abstract

PurposeBorrowing from the dynamic capabilities theory and augmented by the relational view, the study investigates the criticality of supply chain agility in delivering operational performance while understanding the determinant role of key cross-firm resources. Additionally, based on the contingency theory, the interactive influence of two critical context factors, supply uncertainty and product complexity, is examined to enrich the understanding of the contingent nature of the operational performance implications.Design/methodology/approachThe study draws its conclusions from the survey data collected from a 152-respondent sample of executives from US manufacturing firms. The empirical data analyses using partial least square structural equation modeling (PLS-SEM) relate agility to operational performance enhancements while incorporating the moderating effects of contextual factors.FindingsThe study relates agility capability to operational performance enhancements, while resource specificity and resource complementarity emerge as significant determinants of the capability. Results on the contingent impact of contextual factors suggest differential influences of supply uncertainty and product complexity on the agility–performance relationship: while the former enhances, the latter detracts from the relationship.Originality/valueThe study’s contributions suggest theory extensions into supply chains as contexts, reinforcing the importance of market-responsive capabilities and the foundational nature of supply chains as repositories of vital cross-firm resources. The contingent nature of the agility–performance relationship accents the importance of market context factors.