The Impact of Supply Chain Dynamic Capabilities on Operational Performance

Abstract

Background and purpose: Literature is lacking on how supply chain dynamic capabilities influence operational performance. This study aims to empirically investigate the impact of supply chain dynamic capabilities on opera­tional performance in Hungarian manufacturing companies. Design/Methodology/Approach: The study used an online survey for data collection. The model is tested with data from 208 supply chain management professionals from Hungarian manufacturing industry. Structural equation modelling (SEM) was used to test the proposed hypotheses. Results: The empirical results indicate that supply chain dynamic capabilities namely; collaboration capability, agility capability, and responsiveness capability are significantly and positively associated with operational perfor­mance. However, the results show that integration capability has no significant impact on operational performance Conclusion: The study concludes that in a dynamic environment, developing supply chain dynamic capabilities can help manufacturing company managers to build effective supply chains and achieve superior performance. Further, managers need to recognize that supply chain dynamic capabilities are multidimensional and each dimension has different effects on operational performance. Also, the study provides theoretical and managerial implications that are further discussed in detail. Keywords: Dynamic capabilities, Supply chain, Operational performance