Role of Absorptive Capacity, Digital Capability, Agility, and Resilience in Supply Chain Innovation Performance

Abstract

Digitalization is essential for supply chain (SC) systems to thrive in the extremely dynamic and competitive business environment of the present day. The purpose of this study is to examine the role and the importance of absorptive capacity (ACAP) on supply chain innovation performance (SCIP), mediated by digital capability (DCAP), supply chain resilience (SCR), supply chain agility (SCA), and digital innovation (DI). The study has been designed to empirically investigate the hypothesized relationships on a sample of 116 firms across industries in Saudi Arabia, using a partial least-squares-based structural equation model (PLS-SEM). Based on the findings, all the hypothesized paths are supported, justifying that ACAP positively and significantly impacts DCAP, SCA, and SCR. Moreover, SCA and SCR partially mediated the relationship between ACAP and SCIP. This study contributes to the resource-based view (RBV) and a dynamic capability (DC) theories by examining how the innovation of digital technologies affects SCIP, providing empirical support to the ACAP and SCIP interaction through numerous mediators to develop SCIP, from which also many practical implications emerged. For instance, especially in the wake of the COVID-19 pandemic, businesses must improve their SC performance by building and integrating their ACAP to make the most of their digital-platform-based dynamic capabilities.

Enabling supply chain efficacy through supply chain absorptive capacity and ambidexterity: empirical study from Middle East region - a moderated-mediation model

“…This partial moderation impact shows that manifolds are the other factors also that contribute to achieving the desired level of efficiency. Contrary to the findings of the present study, the findings of Abourokbah et al . (2023) showed that AC and digital capability are the factors decisive for the resilience, performance and agility of the SC MFs, which implies that there is a greater role of digital capability along with the AC for the MFs that are vital for ensuring innovation, agility and resilience in the organizational functions.…”

Empowering Clusters: How Dynamic Capabilities Drive Sustainable Supply Chain Clusters in Egypt

“…Organisations in a SCC can exploit external knowledge by hiring skilled labour and acquiring information and knowledge from the pool created by SC-CDC [25], which enhances creativity and innovation [45,46]. Since AC can be enhanced through the facilitation of sharing knowledge and information [47] and access to new skills and resources [48], it can be argued that SCCDCs can pave the way for organisations to develop their AC. In return, AC helps in enhancing the organisational ability to combine acquired information with existing knowledge in order to create new useful knowledge [48,49].…”

“…Since AC can be enhanced through the facilitation of sharing knowledge and information [47] and access to new skills and resources [48], it can be argued that SCCDCs can pave the way for organisations to develop their AC. In return, AC helps in enhancing the organisational ability to combine acquired information with existing knowledge in order to create new useful knowledge [48,49]. Thus, it can be hypothesised: H1.…”

Orientation and absorptive capacity towards sustainability: a missing link between sustainability and performance

“…Likewise, in SMEs, AC, exploitation, and acquisition affect strategic agility and sustainable business performance (Tufan and Mert, 2023). In the perception of Abourokbah et al (2023), AC positively and significantly impacts supply chain innovation performance and digital capability during Orientation and absorptive capacity COVID-19. According to Pu and Liu (2023), the role of AC on FP.…”