Enhancing global supply chain resilience in the Indonesian medical device industry: a dynamic capability perspective

Abstract

PurposeThis paper aims to understand how the global supply chain in the medical device industry embraces resilience by adopting agility approach following COVID-19.Design/methodology/approachThis study adopts an interpretative approach to examine the qualitative data drawn from interviews and observation under dynamic capability theory. The data collection concerned multiple stakeholders involved in purchasing and supply management in the medical device market: manufacturing suppliers, channel partners, hospital management and end-users. The coding analysis uses an application that helps the researchers categorise the nodes and extend the existing literature.FindingsThe findings show that global supply chain leaders leverage the dynamic capability by centralising the business process decision to respond to the shifting demand from the local governments to the national health ministry, shaping the partnership style from the area- to the funnel-based agreement, even though it exposes a risk of product acceptability from the end-users, encouraging the distributor to convert just-in-time approach into holding safety stock to avoid penalty from missing the procurement target even and restructuring the local partners’ debts to manage long-term performance.Originality/valueThis study extends the emerging literature in international business by underpinning dynamic capability theory.