Enhancing global supply chain resilience in the Indonesian medical device industry: a dynamic capability perspective

Abstract

Purpose This paper aims to understand how the global supply chain in the medical device industry embraces resilience by adopting agility approach following COVID-19. Design/methodology/approach This study adopts an interpretative approach to examine the qualitative data drawn from interviews and observation under dynamic capability theory. The data collection concerned multiple stakeholders involved in purchasing and supply management in the medical device market: manufacturing suppliers, channel partners, hospital management and end-users. The coding analysis uses an application that helps the researchers categorise the nodes and extend the existing literature. Findings The findings show that global supply chain leaders leverage the dynamic capability by centralising the business process decision to respond to the shifting demand from the local governments to the national health ministry, shaping the partnership style from the area- to the funnel-based agreement, even though it exposes a risk of product acceptability from the end-users, encouraging the distributor to convert just-in-time approach into holding safety stock to avoid penalty from missing the procurement target even and restructuring the local partners’ debts to manage long-term performance. Originality/value This study extends the emerging literature in international business by underpinning dynamic capability theory.

Multiple flexible suppliers and competitive advantage during market turbulence: the role of digital capabilities

“…First, there is an opportunity to examine the practice of purchasing strategy that raises a trade-off between single-source or multiple-source models for procuring goods or services. For example, working with a single supplier leads to more consistent quality control since the supplier clearly understands the business's needs and expectations (Pratono and Maharani, 2023). On the other hand, multiple suppliers allow buyer firms to spread out the risk of supply chain disruptions and financial difficulties, reducing the overall risk to the business (Wang et al, 2022).…”

“…As a result, adopting the multiple-suppliers model becomes one of the most popular approaches for firms that seek to access a desirable raw material during environmental turmoil, while others prefer to adopt a resilience approach (Burin et al, 2020;Gheibi and Fay, 2021;Blessley and Mudambi, 2022). With multiple suppliers, a firm can leverage different capabilities, capacities and geographical locations to optimize its supply chain and better respond to changes in demand, disruptions or other unforeseen events (Pratono and Maharani, 2023). However,…”

“…, 2020; Gheibi and Fay, 2021; Blessley and Mudambi, 2022). With multiple suppliers, a firm can leverage different capabilities, capacities and geographical locations to optimize its supply chain and better respond to changes in demand, disruptions or other unforeseen events (Pratono and Maharani, 2023). However, heavily relying on flexible suppliers also comes with risks, such as excessive collaboration, which calls for further studies (Villena et al.…”

Dynamic capabilities and SMEs competitiveness: the moderating effect of market turbulence

“…SMEs have few resources and limited options for exploiting DCs compared to large corporations (Cataltepe et al , 2022), meaning that they must be more adaptable and make wiser use of DCs because of their vulnerability to external events. They must continually renew their resources to respond to environmental crises and changing consumer needs by using DCs to overcome negative influences (Pratono and Maharani, 2023). This study follows Schilke et al (2018) who called for research on feedback loops between DCs and their antecedents, mediators and moderators.…”