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Supply chain practices are a mandatory part of the supply chain (Ayman et al., 2014) and are a set of activities undertaken by companies to effectively manage their supply chains (Kozarevic & Puska, 2018). Supply chain practices are considered an effective supply chain management approach, based on cost control, differentiation, responsiveness, and flexibility, and play an important role in ensuring competitive advantage for firms, resulting in significant economic benefits and improved organizational performance (Cook et al., 2011). As competition in the current business environment has shifted from competition between organizations to competition in the supply chain, leading to unprecedented pressure on companies, prompting the need for supply chains that operate more flexibly, to further adapt to the environment and enhance their competitive advantage (Yang, 2014). Consequently, supply chain practices have become important drivers for improving organizational performance (Karmil & Rafiee, 2014). The criteria for supply chain practices, such as supply chain management activities, cover the overall processes of the supply chain, including lead time, delivery time, flexible resources, performance, customer satisfaction, product quality, supply chain, and commodity demand (Ayman et al., 2014). Consequently, the potential value of supply chain practices is of increasing interest to managers, consultants, and scientists (Li et al., 2006).
The market environment of economic globalization has brought turbulence to supply chains, and innovation, supply chain integration, and supply chain management have become hot topics of research (Liu et al., 2022; Munir et al., 2020). The goal of supply chains is to innovate, reduce overall costs, and improve responsiveness through integration and collaboration (McCarthy et al., 2013). In the current study, resources are a very important factor, and the resources that firms and supply chains can use effectively are key to building core competencies. Managing resources in a turbulent environment is the focus of dynamic supply chain capabilities, which have been defined as “the ability of an organization to intentionally create, expand, and modify its resource base” (Zhang et al., 2021; Hong et al., 2018), emphasizing the use of resources. Supply chains can meet market demand only if they create new capabilities to improve efficiency. A firm’s ability to create new capabilities is essentially its dynamic capabilities. According to the extension of the dynamic capability theory to a resource-based view, dynamic capability emphasizes resource development and renewal (Hitt et al., 2016). Sirmon et al. (2007) explained that resources (tangible and intangible) are tied together to create capabilities. The dynamic capability theory illustrates how competitive advantage can be achieved in supply chains (Squire et al., 2009). There is evidence that firms can effectively respond to the current market environment by improving capabilities related to flexibility, visibility, and transparency (Aslam et al., 2018), which require a higher level of dynamic capability in the supply chain. Companies must align their supply chain processes with environmental dynamics (Hosseini & Ivanov, 2020). Therefore, in a turbulent environment, it is necessary to analyze firms and supply chains in terms of their dynamic capabilities. The application of supply chain dynamic capabilities to supply chain management is a logical choice (Meinlschmidt et al., 2016). Considering that supply chain practices and dynamic capabilities are linked through similar environmental and organizational conditions, our first research objective was to determine whether the impact of supply chain practices on supply chain performance is indirectly achieved through supply chain dynamic capabilities.