The road to supply chain agility: an RBV perspective on the role of logistics capabilities

• Published date: 06 May 2014
• DOI: https://doi.org/10.1108/IJLM-07-2012-0062
• Pages: 160-179
• Date: 06 May 2014
• Author: David M. Gligor,Mary Holcomb
• Subject Matter: Management science & operations,Logistics

The road to supply chain agility:

an RBV perspective on the role

of logistics capabilities

David M. Gligor

Department of Marketing and Supply Chain Management,

University of Missouri-Kansas City, Kansas, USA, and

Mary Holcomb

Department of Marketing & Logistics, University of Tennessee, Knoxville,

Tennessee, USA

Abstract

Purpose – The concept of supply chain agility (SCA) has been identified as one of the most important

issues in supply chain management literature. However, despite the popularity of the concept,

many attributes of SCA are largely unexplored. One area that is deficient in research is the antecedents

of SCA. This paper aims to seek further theory development by addressing these gaps in the SCA

literature.

Design/methodology/approach – Data for this study were obtained from a field survey. A mail

questionnaire was constructed that contained items measuring the constructs of interest. The

theoretical model was evaluated using structural equation modeling.

Findings – The findings indicate that logistics capabilities positively impact SCA. The results

provide empirical evidence for logistics’ unique and critical role in helping firms respond in a timely

and effective manner to market volatility and other uncertainties.

Research limitations/implications – As is the case with most supply chain survey research, the

constructs of interest were evaluated based on the perception of a single party involved in a specific

relationship. Future research using multiple dyads or triads within various supply chains could

address this limitation.

Practical implications – If limited resources are available for investment (as is often the

case), a more balanced distribution of resources toward the development of multiple logistics

capabilities (e.g. demand-management interface, information-management interface) is preferred to

pooling all the resources toward the development of a single capability (e.g. information-management

interface).

Originality/value – Considering logistics’ boundary-spanning nature, prior research suggest that

logistics capabilities perform a key role in achieving SCA. However, the relationship between

firm-specific logistics capabilities and SCA has not been empirically tested. This pap er address that

gap in the research.

Keywords Supply chain management, Demand management

Paper type Research paper

1. Introduction

In a rapidly changing business environment, firms should be capable of responding

to said changes in an efficient and effective manner. Agility has been credited with

helping firms respond in a timely and effective manner to market volatility and other

uncertainties, therefore enabling them to establish a competitive position (Swafford

et al., 2006; Li et al., 2009; Gligor and Holcomb, 2012). Moreover, agility is considered to

be one of the fundamental characteristics needed for a supply chain to survive and

thrive in an environment of turbulent and volatile markets (Agarwal et al., 2007;

Braunscheidel and Suresh, 2009; Gligor et al., 2013). Originating in manufacturing,

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/0957-4093.htm

Received 19 July 2012

Revised 10 January 2013

9August2013

Accepted 30 September2013

The International Journal of Logistics

Management

Vol. 25 No. 1, 2014

pp. 160-179

rEmeraldGroup PublishingLimited

0957-4093

DOI 10.1108/IJLM-07-2012-0062

160

IJLM

25,1

agility was viewed as the means for meeting widely varied customer requirements in

terms of price, specification, quality, quantity, and delivery (Katayama and Bennett,

1999), and for addressing the increasing internationalization of competition (Kasarda

and Rondinelli, 1998). As the rate of change in business increased over the years, agility

has been shown to be one of the fundamental characteristics needed for a supp ly

chain to survive and thrive in an environment of turbulent and volatile markets

(Agarwal et al., 2007; Braunscheidel and Suresh, 2009).

Despite the benefits that have been shown from having high levels of supply chain

agility (SCA), many firms are encountering challenges in achieving the level necessary

to enable them to respond to unexpected and unplanned changes that are internally

and externally driven. However, the preponderance of research on agility has

primarily focussed on a particular aspect – manufacturing flexibility and le an

manufacturing (Gunasekaran and Yusuf, 2002; Hofman and Cecere, 2005; Swafford

et al., 2006). The shift in the business paradigm has moved the research emphasis to

one of SCA, where the current need is to better understand how fir ms can develop this

crucial capability. Identifying the factors that determine and influence a firm’s SCA

is critical for building theory and advancing managerial knowledge and practice.

The resource-based view (RBV) of the firm provides a useful theoretical lens

through which the antecedents of firm SCA can be examined. RBV considers the firm

as a portfolio of resources and capabilities that can culminate in enhanced

performance (Wernerfelt, 1984). Consistent with RBV, it is the premise of this study

that firm-specific logistics capabilities can be a source of competitive advantage.

Considering logistics’ boundary-spanning nature, Gligor and Holco mb (2010)

suggested that logistics capabilities can perform a key role in achieving SCA. While

previous research has examined specific components of logistics-related capabilities

such as information or demand, the relationship between firm-specific logistics

capabilities and SCA has not been empirically tested. The purpose of this paper is to

address this gap of knowledge. The RBV of the firm provides the theoretical

framework through which the relationship between logistics capabilities and SCA

can be empirically examined. Additional theoretical support for the relationships

hypothesized in this research is provided by the dynamic capabilities perspective of

RBV (Teece et al., 1997).

This research contributes to provide a better understanding of the role that

logistics capabilities play in achieving SCA. First, building on RBV, it develops

a theoretical framework of SCA that examines how internal bounda ry-spanning

logistics capabilities can be used to gain a competitive advantage. Specifically, this

research empirically investigates the role of logistics demand-management and

information-management interface capabilities (IMIC) in achieving SCA. Second,

guided by RBV’s dynamic capabilities perspective, this research explores the

development of integrated logistics capabilities (ILC) and their impact on SCA.

The ability to integrate logistics capabilities is conceptualized as a dynamic capability

and SCA is also examined in this study. Relevant managerial implications are

offered as well.

2. Literature review and research model

2.1 SCA

The literature on SCA positions agility as a broad and multi-dimensional concept

bridging many disciplines (Swafford et al., 2006). As the benefits of agility have gained

increasing recognition (Giachetti et al., 2003; Sharifi and Zhang, 2001; van Hoek, 1998;

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The road to SCA