Harnessing Supply Chain Knowledge for Mitigating the Negative Effects of Bricolage

Abstract

Bricolage is a term used to illustrate the practice in which small firms tap scant available resources to exploit business opportunities and to facilitate innovation. We focus on decreasing returns from excessive bricolage and, more importantly, highlight an important role played by supply chain knowledge in mitigating decreasing returns from bricolage. The role played by supply chain knowledge in reducing the negative effects of excessive bricolage is not explored yet. This study, in the context of an emerging economy, seeks to isolate the linear and quadratic effects of bricolage on firm performance and examines the moderating influence of supply chain knowledge on the bricolage-to-firm performance relationship. To test the proposed relationships, data from large-scale manufacturing firms in north-west India were used. The final sample size of 106 firms was used for testing the relationships using stepwise OLS analysis. The results revealed that at lower levels of supply chain knowledge, bricolage had an inverted-U relationship with firm performance. In other words, supply chain knowledge mitigates the negative effects of bricolage on performance. However, it did not strengthen the positive effect of bricolage on performance.