Developing model to analyze factors affecting firms’ agility and competitive capability

Abstract

PurposeThe purpose of this study was to investigate and explain the factors contributing to supply chain agility in service-oriented firms and therein to enhance competitive capabilities of the organization. The study has identified various variables from past studies that support firms in developing agile supply chain operations. Factors identified from prior studies are supply chain flexibility, supply chain visibility, supply chain responsiveness, supply chain speed and learning orientation, which were then empirically tested for further understanding.Design/methodology/approachUsing purposive sampling, a sample of 217 valid responses was gathered through structured questionnaire from supply chain practitioners working in various service industries of Pakistan. Partial least square-structural equation modeling was used for data analysis.FindingsThe results of the study show that learning orientation and flexibility of the service firm highly complement the goal of achieving agility in their operations. Speed and visibility also have a major impact on developing agile supply chain. Moreover, supply chain agility has a significantly positive impact on competitive capabilities.Originality/valueThis research is about investigating the operational agility of services sector, which is a one-off study especially in the context of developing and competitive market. This research will provide important insights into the context of dynamic capabilities view for policymakers and decision-makers who aim to develop their competitive strategies based on their operational agility.