Missing link between sustainability collaborative strategy and supply chain performance: Role of dynamic capability

Abstract

Formulation of right strategies is believed to be able to bring sustainable performance across triple bottom line (TBL), i.e., economic, environmental and social aspects within and across organizations. The purpose of this research is to investigate the role of misaligned collaboration and dynamic capabilities on TBL performance. Misaligned collaboration signifies those configurations of collaboration that deviate from ideal profile of collaboration. The ideal profile of collaboration corresponds to superior performance. Collaboration has been operationalized through joint planning and resource sharing (JPRS) and collaborative culture (CC) which brings relational aspects into collaboration. Specifically, this research provides important extensions to the theory of profile deviation and dynamic capabilities (DC) perspective in the context of sustainable supply chain performance and misaligned collaboration utilizing the empirical evidence. Uniqueness of the proposed model is established by comparing with four other alternate models. We find both JPRSmisalign (misalignment of JPRS from the ideal profile) and CCmisalign (misalignment of CC from the ideal profile) influence all dimensions of TBL through DCs. Only direct influence of CCmisalign on operational and social performance is significant. Results convey the need of building DCs when collaboration is misaligned with its ideal profile, and this misalignment produces detrimental effects on DCs and TBL performance. This research contributes significantly by building unique model to develop and maintain sustainability. Further, theoretical and managerial contributions are highlighted and contested with existing knowledge.