Impacts of cognitive and social distances on supply chain capability: the moderating effect of information technology utilization

Abstract

PurposeThis study aims to examine how implicit distance (cognitive and social) impacts supply chain capabilities, and the roles of information technology (IT) utilization and supply chain flexibility in this process.Design/methodology/approachThe authors designed a conceptual model including the implicit distance, supply chain flexibility, supply chain capability and IT utilization and verified the relationships among variables through a survey that collected data from 104 manufacturing enterprises in China.FindingsThe results show that cognitive and social distances positively and negatively affect supply chain flexibility, respectively. Furthermore, IT utilization strengthens the positive effect of cognitive distance and the negative effect of social distance on supply chain flexibility. Additionally, supply chain flexibility has a positive effect on supply chain capability and mediates the effects of cognitive and social distances on supply chain capability.Practical implicationsEnterprises should prioritize cooperation with different types of partners with whom the enterprises have established good collaborative working experiences. Moreover, if enterprises cooperate with new partners, enterprises should communicate and handle things face to face instead of frequently utilizing IT.Originality/valueThis study links the implicit distance between enterprises with supply chain capability and newly applies social network theory to explain the mechanism. Further, the authors' data confirm the moderating role of IT utilization in this process, supplementing the research on implicit distance. Moreover, this study employs dynamic capability theory to better understand how firms can improve supply chain capabilities.