Understanding dynamic distribution capabilities to enhance supply chain performance: a dynamic capability view

Abstract

PurposeThe purpose of this paper is to evaluate and understand the factors that contribute to the enhancement in the process of supply chain activities, specifically among manufacturing industries.Design/methodology/approachThis paper follows the quantitative approach by disseminating a structured questionnaire to supply chain practitioners working in manufacturing industries. A sample of 109 responses is gathered from senior employees involved in sales and operations planning. Exploratory and confirmatory factor analyses are performed to evaluate the reliability and validity of the model. Lastly, SmartPLS is used to test the hypotheses proposed in the study.FindingsThe findings revealed that demand sensing and managing practices positively impact supply chain performance by creating dynamic distribution capabilities. It is observed that distribution capabilities integrate both efficient and effective handling of resources. However, demand management practice has insignificant relationship with supply chain performance.Research limitations/implicationsThe authors suggest that supply chain management must expand in firms, and importance must be given as supply chain performance can provide competitive advantage in order to sustain in today's competitive market.Practical implicationsThe findings can help decision-makers working in the planning process by identifying the right tools to sense the market and react accordingly.Originality/valueThis paper is an initial effort to understand the dynamic distribution capabilities by establishing the link with the studied variables, especially in the manufacturing industries in Pakistan.