Supplier-dedicated resources and flexibility’s roles in a manufacturer’s superior performance

Abstract

In today’s ever-changing environment, a manufacturing firm depends increasingly on suppliers to sustain its competitiveness. The recent COVID-19 pandemic has demonstrated that supply chain disruptions impair a firm’s ability to deliver customer value. The adverse effect is more significant when the supply chains in question are inflexible rather than flexible. This research argues that supplier-dedicated resources (SRs) and supplier flexibility (SF) determine a manufacturing firm’s competitive advantage (CA) and provide a comprehensive view of these supply chain-based factors in the same model. Based on data from 201 respondents in US manufacturing firms that vary in industry type and company size, the results confirm that SRs are critically extended resources for a manufacturing firm. The results also demonstrate that SF mediates the effect of SRs on a manufacturer’s sustainable CA fully. Further, the research develops and verifies SRs as a second-order construct reflecting the synergistic benefit of three subconstructs: dedicated technology, engineers and managers, and company climate.