Multiple flexible suppliers and competitive advantage during market turbulence: the role of digital capabilities

Abstract

PurposeThis article aims to examine the impact of multiple suppliers on competitive advantage by exploiting digital capabilities.Design/methodology/approach The author propose a structural equation model with the adopted measure from the literature. Hence, the study conducted an online survey in Indonesia with 450 qualified respondents involving managers and owner-managers.FindingsThe results indicate multiple suppliers help the firms to exploit digital capabilities, which foster them to achieve competitive advantage. Hence, different level of market turbulences determines the impact of numerous suppliers on competitive advantage. Specifically, the multiple-suppliers approach is more effective in supporting buyer firms to gain a competitive advantage during high market turbulence than low market turbulence.Research limitations/implicationsThis study offers empirical evidence with unit analysis of buyer firms that seek competitive advantage by exploiting digital capability. However, this approach focusses on a single unit analysis, which is buyer firms. Hence, there is an opportunity to adopt qualitative approach to explore the suppliers and end-users from different perspectives from other supply chain players.Originality/valueThis article contributes to the growing literature on the resource-based theory by examining the relationship between the multiple-sourcing model and competitive advantage. The authors also discuss the intersection between resource-based, dynamic capability and stakeholder theory.