The role of absorptive capacity within supply chain quality integration

Abstract

PurposeThere is a consensus suggesting that the theoretical underpinning associated with supply chain quality management practices remain evolutionary to current thinking. Therefore, this study aims to explore how absorptive capacity (AC) supports supply chain quality integration (SCQI) by building product and process quality within a supply chain (SC).Design/methodology/approachA comparative case study of global pharmaceutical manufacturers in a developing market was undertaken. A two-round qualitative research method was designed to collect data through 54 semi-structured interviews with pharmaceutical managers and senior managers.FindingsThe results demonstrate that AC is essential to the development of SCQI because of its ability to use valuable strategic and operational knowledge, which is important when improving consistent internal product and process quality, along with establishing a robust SC design. The authors found that AC enables companies to design their quality and continuously improve their products and processes among their SC members.Research limitations/implicationsThe authors acknowledge that these sets of findings are difficult to generalise to other sectors, however, the authors are confident that they can be extrapolated to other companies in the pharmaceutical industry.Practical implicationsThe study develops a framework to support practitioners and decision makers to leverage their AC towards facilitating their SCQI practices.Originality/valueThis study explains the role of the AC process in relation to SCQI practices, in the context of the pharmaceutical SC. The study profiles the characteristics of dynamic capabilities to increase the companies’ competencies, processes and resources.