Effect of supply-chain resilience on firm performance and competitive advantage

Abstract

PurposeThe purpose of this paper is to investigate the extent to which firms in the Sri Lankan apparel industry practice supply-chain-resilience (SCRes) capabilities and examine whether SCRes practices affect the performance and competitive advantage of those firms.Design/methodology/approachUses a conceptual framework to assess SCRes capabilities and to investigate their impact on firm performance and competitive advantage. Uses partial least squares structural equation modeling (PLS-SEM) to quantitatively analyze questionnaire data collected from 89 Sri Lankan apparel manufacturers.FindingsIn the presence of SCRes capabilities in the apparel industry, this study finds that supply-chain risk-management culture positively affects SCRes capabilities, namely re-engineering, agility and collaboration. Agility shows the greatest influence on firm performance and competitive advantage.Research limitations/implicationsThis study is limited to the apparel industry sector (a manufacturing sector) in Sri Lanka to maintain the uniformity of the research constructs.Practical implicationsResults imply that management should pay more attention to enhancing SCRMC and prioritizing their SCRes capabilities.Originality/valueThis study is the first to assess SCRes capabilities in the apparel-manufacturing sector and examine the impact of SCRes capabilities on firm performance and competitive advantage.