An Empirical Study on the Mechanism of Dynamic Capacity Formation in the Supply Chain

Abstract

Supply chain dynamic capability is becoming an indispensable core competency for organizations. However, it is still unknown how dynamic capability functions during actual use. Based on this reason, this study compiles research on supply chain dynamic capability, proposes the formation mechanism of supply chain dynamic capability, and validates it using data from Chinese companies. The results of structural equation modeling based on a sample of 162 Chinese companies show that environmental turbulence profoundly affects supply chain dynamic capabilities through direct and indirect effects. The dimensions of supply chain synergy have an important mediating effect on the dynamic capability of supply chains. Supply chain flexibility and agility, as the external manifestation of supply chain dynamic capability, are not only influenced by environmental turbulence and supply chain synergy, but also, the supply chain flexibility affects the supply chain agility. Based on these results, the formation mechanism of supply chain dynamic capability was further proposed.