Understanding the evolution of flexible supply chain in the business-to-business sector: a resource-based theory perspective

Abstract

Resource-based theory (RBT) is one of the theoretical lenses that have been used extensively to understand a firm’s competitive advantage by utilizing strategic resources and capabilities. When applied to Business-to-Business (B2B) supply chains, RBT emphasizes the importance of having a flexible and adaptable supply chain that can leverage a company’s internal strengths to meet customer needs effectively. By focusing on the resources specific to a particular company, a flexible B2B supply chain can be designed to meet customer demand efficiently and cost-effectively in a rapidly changing marketplace. Despite RBT's popularity as a theoretical lens, it has also faced criticism. To comprehensively understand these critiques and discover alternative views, we conducted a thorough analysis of relevant literature in the field of supply chain management. Although some of the criticisms were valid, we determined that the core message of RBT remains intact. However, we also acknowledge that a biased neoclassical economic rationality has constrained the RBT community. To overcome these limitations, the authors recommend further research into flexible B2B supply chains to uncover new opportunities for improvement.