Is Paper Stationery or Agile? An Investigation of Dynamic Capabilities in the Printing Paper Supply Chain

Abstract

Dynamic capabilities enable businesses to build a sustainable competitive advantage (Teece, 2007). This study investigates whether supply chain sensing (SCS) and supply chain agility (SCA) form a dynamic sensing and agility capability (DSAC) that enhances firm performance. Most empirical research on dynamic capabilities examines large organizations; this study investigates dynamic capabilities in small to medium enterprises (SMEs). SMEs form a significant part of the world economy and often have limited resources compared to large organizations. We utilize a survey of 139 respondents from SMEs in a single industry – the printing industry. Our analysis, both an EFA and PLS-SEM, find that SCS and SCA are different constructs that combine to form a dynamic sensing and agility capability. We found that this dynamic sensing and agility capability positively affects firm performance but not supply chain impact.