Building sustainable supply chains: Role of supply chain flexibility in leveraging information system flexibility and supply chain capabilities

Abstract

In today's interconnected and intricate global environment, achieving sustainable supply chain performance is paramount for organizations. Within this context, the flexibility of information systems as dynamic capability, is a driving force behind effective supply chain management. In addition, there are a multitude of compliances that supply chains have to comply with in order to achieve sustainable outcomes. Against this background we examine how information systems flexibility, knowledge capabilities, supply chain capabilities and supply chain flexibility contributes towards sustainable performance of the supply chains. Using the lenses of Dynamic Capability View (DCV), this paper explores relationships among these constructs using Partial least Squares-Structural Equation Modeling (PLS-SEM). 321 tire industry professionals participated in the survey and provided their feedback. The findings underscore the fact that information system flexibility significantly enhances knowledge and supply chain capabilities, which subsequently facilitate flexibility in supply chains. The results of this study also established the significant influence of supply chain flexibility on sustainable supply chain performance, emphasizes the need to have flexibility in supply chain to achieve sustainability goals. This research provides an important input into academic debates on sustainable supply chain management, as it sheds light on the role of information system to improve Supply chain flexibility and sustainability.