Browse > Article
http://dx.doi.org/10.9723/jksiis.2021.26.6.061

The Role of Operational Absorptive Capacity on Supply Chain Risk  

Jeong, EuiBeom (한신대학교 경영학과)
Publication Information
Journal of Korea Society of Industrial Information Systems / v.26, no.6, 2021 , pp. 61-80 More about this Journal
Abstract
As the business environment becomes more rapid and unpredictable change, greater diversity, increased complexity, and intensified competitive pressures, supply chain risk management has been growing attention over the past several decades. However, little of known about how absorptive capacity can mitigate supply chain risk for improving operational performance despite its important role in responding to supply chain risk. Therefore, we aim to examine the role of organizational-level absorptive capacity on operational performance, and further identify how the interplay of individual-level and organizational-level absorptive capacity results in operational performance. Our results represent not only direct but also indirect effects of supply chain risk on operational performance, mediated by organizational-level absorptive capacity. Furthermore, this study reveals that individual-level absorptive capacity enhances the effect of organizational-level absorptive capacity on operational performance.
Keywords
Supply chain risk; operational absorptive capacity; manufacturing flexibility;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Guide, V.D.R., and Ketokivi, M. (2015). Notes from the Editors: Redefining Some Methodological Criteria for the Journal. Journal of Operations Management, 37(1), 5-8.
2 Anderson, J.C., and Gerbing, D.W. (1988). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin, 103(3), 411-423.   DOI
3 Ardichvili, A., Cardozo, R., and Ray, S. (2003). A Theory of Entrepreneurial Opportunity Identification and Development. Journal of Business Venturing, 18(1), 105-123.   DOI
4 Upton, D.M. (1995). What Really Makes Factories Flexible? Harvard Business Review, July-August, 74-84.
5 Venkatraman, N., and Prescott, J.E. (1990). Environment-Strategy Coalignment: An Empirical Test of Its Performance Implications. Strategic Management Journal, 11(1), 1-23.   DOI
6 Wang, E.T.G., Tai, J.C.F., and Grover, V. (2013). Examining the Relational Benefits of Improved Interfirm Information Processing Capability in Buyer-Supplier Dyads. MIS Quarterly, 37(1), 149-173.   DOI
7 Wong, C.Y., Boon-itt, S., and Wong, C.W.Y. (2011). The Contingency Effects of Environmental Uncertainty on the Relationship between Supply Chain Integration and Operational Performance. Journal of Operations Management, 29(6), 604-615.   DOI
8 Zahra, S.A. (1996). Technology Strategy and Financial Performance: Examining the Moderating Role of the Firm's Competitive Environment. Journal of Business Venturing, 11(3), 189-219.   DOI
9 Nunnally, J. (1954). Psychometric Methods. New York, NY: McGraw-Hill.
10 Mowery, D.C., Oxley, J.E., and Silverman, B.S. (1996). Strategic Alliances and Interfirm Knowledge Transfer. Strategic Management Journal, 17(52), 77-91.   DOI
11 Hambrick, D.C. (1983). High Profit Strategies in Mature Capital Goods Industries: A Contingency Approach. Academy of Management Journal, 26(4), 687-707.   DOI
12 Rao, S., and Goldsby, T.J. (2009). Supply Chain Risks: A Review and Typology. The International Journal of Logistics Management, 20(1), 97-123.   DOI
13 Reuer, J.J. (1999). Collaborative Strategy: The Logic of Alliances. Mastering Strategy, 4, 12-13.
14 Robb, D.J., Xie, B., and Arthanari., T. (2008). Supply Chain and Operations Practice and Performance in Chinese Furniture Manufacturing. International Journal of Production Economics, 112(2), 683-699.   DOI
15 Zhu Q., Krikke, H., and Caniels, M.C.J. (2016). Integrated Supply Chain Risk Management: A Systematic Review. The International Journal of Logistics Management, 28(4), 1123-1141.   DOI
16 Miller, J.G., and Roth, A.V. (1994). A Taxonomy of Manufacturing Strategies. Management Science, 40(3), 285-304.   DOI
17 Harada, T. (2003). Three Steps in Knowledge Communication: The Emergence of Knowledge Transformers. Research Policy, 32(10), 1737-1751.   DOI
18 Rosenbusch, N., Rauch, A., and Bausch, A. (2013). The Mediating Role of Entrepreneurial Orientation in the Task Environment-Performance Relationship: A Meta-Analysis. Journal of Management, 39(3), 633-659.   DOI
19 Phillips, L.W. (1981). Assessing Measurement Error in Key Informant Reports: A Methodological Note on Organizational Analysis in Marketing. Journal of Marketing Research, 18(4), 395-415.   DOI
20 Pournader, M. (2020). A Review of the Existing and Emerging Topics in the Supply Chain Risk Management Literature. Decision Sciences, 51(4), 867-919.   DOI
21 Sethi, A.K., and Sethi, S.P. (1990). Flexibility in Manufacturing: A Survey. International Journal of Flexible Manufacturing Systems, 2, 289-328.   DOI
22 Shenkar, O., and Li., J. (1999). Knowledge Search in International Cooperative Ventures. Organization Science, 10(2), 134-143.   DOI
23 Soper, D.S. (2018). A-Priori Sample Size Calculator for Structural Equation Models. [Software]. http://www.danielsoper.com/statcalc.
24 Hair, J.F., Anderson, R.E., Tatham, R.L., and Black, W.C. (1998). Multivariate Data Analysis, Upper Saddle River, NJ, USA: Prentice-Hall.
25 Rojo, A., Stevenson, M., Llorens Montes, F.J., and Perez-Arostegui, M.N. (2018). Supply Chain Flexibility in Dynamic Environments: The Enabling Role of Operational Absorptive Capacity and Organisational Learning. International Journal of Operations & Production Management, 38(3), 636-666.   DOI
26 Sheffi, Y. (2005). The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage. Cambridge: MIT Press Books.
27 ter Wal, A., Criscuolo, P., and Salter., A. (2011). Absorptive Capacity at the Individual Level: An Ambidexterity Approach to External Engagement. Paper presented at the Proceedings of DRUID Society Conference 2011 on Innovation, Strategy, and Structure - Organizations, Institutions, Systems and Regions, Copenhagen, Denmark, June 15-17.
28 Hayes, R.H., and Wheelwright, S.C. (1985). Restoring Our Competitive Edge: Competing through Manufacturing. Administrative Science Quarterly, 30(1), 305-307.   DOI
29 Hill, T. (1995). Developing a Manufacturing Strategy: Principles and Concepts in Manufacturing Strategy, 23-59. Berlin, Germany: Springer.
30 Hyun, J., and Ahn, B. (1992). A Unifying Framework for Manufacturing Flexibility. Manufacturing Review, 5, 251-260.
31 Szulanski, G. (1996). Exploring Internal Stickiness: Impediments to the Transfer of Best Practice within the Firm. Strategic Management Journal, 17(52), 27-43.   DOI
32 Patel, P.C., Terjesen, S., and Li., D. (2012). Enhancing Effects of Manufacturing Flexibility through Operational Absorptive Capacity and Operational Ambidexterity. Journal of Operations Management, 30(3), 201-220.   DOI
33 Kim, D.H. (1993). The Link between Individual and Organizational Learning. Sloan Management Review, 33, 37-50.
34 Cockburn, I.M., and Henderson, R.M. (1998). Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery. The Journal of Industrial Economics, 46(2), 157-182.   DOI
35 Cohen, W.M., and Levinthal, D.A. (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1), 128-152.   DOI
36 Bagozzi, R.P., and Yi, Y. (1988). On the Evaluation of Structural Equation Models. Journal of the Academy of Marketing Science, 16, 74-94.   DOI
37 Barreto, I. (2010). Dynamic Capabilities: A Review of Past Research and an Agenda for the Future. Journal of Management, 36(1). 256-280.   DOI
38 Boynton, A.C., Zmud, R.W., and Jacobs, G.C. (1994). The Influence of IT Management Practice on IT Use in Large Organizations. MIS Quarterly, 18(3), 299-318.   DOI
39 Venkatraman, N. (1989). The Concept of Fit in Strategy Research: Toward Verbal and Statistical Correspondence. Academy of Management Review, 14(3), 423-444.   DOI
40 Ward, P.T., Bickford, D.J., and Leong, G.K. (1996). Configurations of Manufacturing Strategy, Business Strategy, Environment and Structure. Journal of Management, 22(4), 597-626.   DOI
41 Teece, D.J., Pisano, G., and Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509-533.   DOI
42 Trkman, P., and McCormack, K. (2009). Supply Chain Risk in Turbulent Environments - A Conceptual Model for Managing Supply Chain Network Risk. International Journal of Production Economics, 119(2), 247-258.   DOI
43 Tu, Q., Vonderembse, M.A., Ragu-Nathan, T., and Sharkey, T.W. (2006). Absorptive Capacity: Enhancing the Assimilation of Time-Based Manufacturing Practices. Journal Operations Management, 24(5), 692-710.   DOI
44 Upton, D.M. (1994). The Management of Manufacturing Flexibility. California Management Review, 36(2), 72-89.   DOI
45 Vokurka, R.J., & O'Leary-Kelly, S.W. (2000). A review of empirical research on manufacturing flexibility. Journal Operations Management, 18(4), 485-501.   DOI
46 Volberda, H.W., Foss, N.J., and Lyles, M.A. (2010). Perspective-Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field. Organization Science, 21(4), 931-951.   DOI
47 Zahra, S.A. (1991). Predictors and Financial Outcomes of Corporate Entrepreneurship: An Exploratory Study. Journal of Business Venturing, 6(4), 259-285.   DOI
48 Atuahene-Gima, K. (1992). Inward Technology Licensing as an Alternative to Internal R&D in New Product Development: A Conceptual Framework. Journal of Product Innovation Management, 9(2), 156-167.   DOI
49 Baz, J.EI., and Ruel, S. (2021). Can Supply Chain Risk Management Practices Mitigate the Disruption Impacts on Supply Chains' Resilience and Robustness? Evidence from an empirical survey in a COVID-19 Outbreak Era, International Journal of Production Economics, 223, 107972.
50 Wang, E.T.G., Tai, J.C.F., and Wei, H.-L. (2006). A Virtual Integration Theory of Improved Supply-Chain Performance. Journal of Management Information Systems, 23(2), 41-64.   DOI
51 Kaish, S., and Gilad, B. (1991). Characteristics of Opportunities Search of Entrepreneurs versus Executives: Sources, Interests, General Alertness. Journal of Business Venturing, 6(1), 45-61.   DOI
52 D'Souza, D.E., and Williams, F.P. (2000). Toward a Taxonomy of Manufacturing Flexibility Dimensions. Journal of Operations Management, 18(5), 577-593.   DOI
53 Argyris, C., and Schon, D. (1989). Organizational Learning: A Theory of Action Approach. MA, USA: Addison Wesley.
54 Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17, 99-120.   DOI
55 Lane, P.J., Koka, B.R., and Pathak, S. (2006). The Reification of Absorptive Capacity: A Critical Review and Rejuvenation of the Construct. Academy of Management Review, 31(4), 833-863.   DOI
56 Stevenson, M., and Spring, M. (2007). Flexibility from a Supply Chain Perspective: Definition and Review. International Journal of Operations & Production Management, 27(7), 685-713.   DOI
57 Ireland, R., Kuratko, D., and Hornsby, J. (2001). External and Internal Environmental Strategic Triggers of Corporate Entrepreneurship and Entrepreneurial Behavior. Presented at the Proceedings of 21st Annual Strategic Management Society Conference, San Francisco, CA, USA, October 21-24.
58 Buzzacchi, L., Colombo, M.G., and Mariotti, S. (1995). Technological Regimes and Innovation in Services: The Case of the Italian Banking Industry. Research Policy, 24(1), 151-168.   DOI
59 Yang, B., and Yang, Y. (2010). Postponement in Supply Chain Risk Management: A Complexity Perspective. International Journal of Production Research, 48(7), 1901-1912.   DOI
60 Bessant, J., Kaplinsky, R., and Lamming, R. (2003). Putting Supply Chain Learning into Practice. International Journal of Operations & Production Management, 23(2), 167-184.   DOI
61 Chong, A.Y.L., and Zhou, L. (2014). Demand Chain Management: Relationships between External Antecedents, Web-based Integration and Service Innovation Performance. International Journal of Production Economics, 154, 48-58.   DOI
62 Cohen, W.M., and Levinthal, D.A. (1994). Fortune Favors the Prepared Firm. Management Science, 40(2), 227-251.   DOI
63 Gaglio, C.M., and Katz, J.A. (2001). The Psychological Basis of Opportunity Identification: Entrepreneurial Alertness. Small business economics, 16, 95-111.   DOI
64 Gilbert, M., and Cordey-Hayes, M. (1996). Understanding the Process of Knowledge Transfer to Achieve Successful Technological Innovation. Technovation, 16(6), 301-312.   DOI
65 Gupta, Y.P., and Gupta, M.C. (1991). Flexibility and Availability of Flexible Manufacturing Systems: An Information Theory Approach. Computers in Industry, 17(4), 391-406.   DOI
66 Chen, I.J., Paulraj, A., and Lado, A.A. (2004). Strategic Purchasing, Supply Management, and Firm Performance. Journal of Operations Management, 22(5), 505-523.   DOI
67 Gupta, Y.P., and Somers, T.M. (1996). Business Strategy, Manufacturing Flexibility, and Organizational Performance Relationships: A Path Analysis Approach. Production and Operations Management, 5(3), 204-233.   DOI
68 Browne, J., Dubois, D., Rathmill, K., Sethi, S.P., and Stecke., K.E. (1984). Classification of Flexible Manufacturing Systems. FMS Management, 2, 114-117.
69 Carr, A.S., and Pearson, J.N. (1999). Strategically Managed Buyer-Supplier Relationships and Performance Outcomes. Journal of Operations Management, 17(5), 497-519.   DOI
70 Churchill Jr, G.A. (1979). A Paradigm for Developing better Measures of Marketing Constructs. Journal of Marketing Research, 16, 64-73.   DOI
71 Joglekar, P., Bohl, A.H., and Hamburg, M. (1997). Comments on 'Fortune Favors the Prepared Firm'. Management Science, 43(10), 1455-1462.   DOI
72 Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y., and Podsakoff, N.P. (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology, 88(5), 879-903.   DOI
73 Ismail, H., and Sharifi, H. (2006). A Balanced Approach to Building Agile Supply Chains. International Journal of Physical Distribution & Logistics Management, 36(6), 431-444.   DOI
74 Zhang, M., Sarker, S., and McCullough, J. (2008). Measuring Information Technology Capability of Export-Focused Small or Medium Sized Enterprises in China: Scale Development and Validation. Journal of Global Information Management, 16(3), 1-25.   DOI
75 Kim, L. (1998). Crisis Construction and Organizational Learning: Capability Building in Catching-up at Hyundai Motor. Organization Science, 9(4), 506-521.   DOI
76 Dobrzykowski, D.D., Leuschner, R., Hong, P.C., and Roh, J.J. (2015). Examining Absorptive Capacity in Supply Chains: Linking Responsive Strategy and Firm Performance. Journal of Supply Chain Management, 51(4), 3-28.   DOI
77 Iyer, K.N.S., Germain, R., and Frankwick, G.L. (2004). Supply Chain B2B E-Commerce and Time-Based Delivery Performance. International Journal of Physical Distribution & Logistics Management, 34(8), 645-661.   DOI
78 Martinez Sanchez, A., and Perez, M. (2005). Supply Chain Flexibility and Firm Performance: A Conceptual Model and Empirical Study in the Automotive Industry. International Journal of Operations & Production Management, 25(7), 681-700.   DOI
79 Jean, R.J.B., Kim, D., and Sinkovics, R.R. (2012). Drivers and Performance Outcomes of Supplier Innovation Generation in Customer-Supplier Relationships: The Role of Power-Dependence. Decision Sciences, 43(6), 1003-1038.   DOI
80 Jeong, E.B., and Yoo, H. (2021). Spread of Negative Word-of-Mouth of Manufacturing Companies Via Twitter: From the Supply Chain Risk's Perspective. Journal of the Korea Industrial Information Systems Research, 26(5), 79-94.   DOI
81 Jorde, T.M., and Teece, D.J. (1989). Competition and Cooperation: Striking the Right Balance. California Management Review, 31(3), 25-37.   DOI
82 Kathuria, R., and Partovi, F.Y. (1999). Work Force Management Practices for Manufacturing Flexibility. Journal of Operations Management, 18(1), 21-39.   DOI
83 Ketokivi, M., and Schroeder, R. (2004). Manufacturing Practices, Strategic Fit and Performance: A Routine-Based View. International Journal of Operations & Production Management, 24(2), 171-191.   DOI
84 Ellram, L.M., and Edis, O.R. (1996). A Case Study of Successful Partnering Implementation. Journal of Supply Chain Management, 32(3), 20-28.
85 Koste, L.L., and Malhotra, M.K. (1999). A Theoretical Framework for Analyzing the Dimensions of Manufacturing Flexibility. Journal of Operations Management, 18(1), 75-93.   DOI
86 Koza, M.P., and Lewin, A.Y. (1998). The Co-Evolution of Strategic Alliances. Organization Science, 9(3), 255-264.   DOI
87 Lamming, R. (1993). Beyond Partnership: Strategies for Innovation and Lean Supply. Englewood Cliffs, NJ: Prentice-Hall.
88 Munir, M., Jajja, M.S.S., Chatha, K.A., and Farooq, S. (2020). Supply Chain Risk Management and Operational Peformance: The Enabling Role of Supply Chain Integration, International Journal of Production Economics, 227, 107667.   DOI
89 Gerwin, D. (1993). Manufacturing Flexibility: A Strategic Perspective. Management Science, 39(4), 395-410.   DOI
90 Fornell, C., and Larcker, D.F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382-388.   DOI
91 Gerwin, D. (1987). An Agenda for Research on the Flexibility of Manufacturing Processes. International Journal of Operations & Production Management, 7(1), 38-49.   DOI
92 Grant, R.M. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3), 114-135.   DOI
93 Lee, D. (2019). The Effect of Supplier Dependence on Relationship Performance: Focusing on Supply Chain Relationships and Communication Practices. Journal of the Korea Industrial Information Systems Research, 24(4), 37-52.   DOI
94 Kirzner, I.M. (1973). Competition and Entrepreneurship. Chicago, IL, USA: University of Chicago Press.
95 Kumar, R., and Nti, K.O. (1998). Differential Learning and Interaction in Alliance Dynamics: A Process and Outcome Discrepancy Model. Organization Science, 9(3), 356-367.   DOI
96 Miller, D., and Friesen, P.H. (1983). Strategy-Making and Environment: The Third Link. Strategic Management Journal, 4(3), 221-235.   DOI
97 Zahra, S.A., and George, G. (2002). Absorptive Capacity: A Review, Reconceptualization, and Extension. Academy of Management Review, 27(2), 185-203.   DOI
98 Lane, P.J., and Lubatkin, M. (1998). Relative Absorptive Capacity and Interorganizational Learning. Strategic Management Journal, 19(5), 461-477.   DOI
99 Lee, D. and Lee, D. H. (2021). Theoretical Review of the Relationship among Perceived Uncertainty, Transaction Characteristics, Supplier Capability, and Supply Chain Performance, Journal of the Korea Industrial Information Systems Research, 26(4), 47-58..   DOI
100 Lenz, R.T. (1980). Environment, Strategy, Organization Structure and Performance: Patterns in One Industry. Strategic Management Journal, 1(3), 209-226.   DOI
101 Lengnick-Hall, C.A., and Beck, T.E. (2005). Adaptive Fit versus Robust Transformation: How Organizations Respond to Environmental Change. Journal of Management, 31(5), 738-757.   DOI
102 Lee, A.H., Kang, H.Y., Hsu, C.F., and Hung, H.C. (2009). A Green Supplier Selection Model for High-Tech Industry. Expert Systems with Applications, 36(4), 7917-7927.   DOI
103 Li, S., Ragu-Nathan, B., Ragu-Nathan, T., and Rao, S.S. (2006). The Impact of Supply Chain Management Practices on Competitive Advantage and Organizational Performance. Omega, 34(2), 107-124.   DOI
104 Melville, N., Kraemer, K., and Gurbaxani, V. (2004). Information Technology and Organizational Performance: An Integrative Model of IT Business Value. MIS Quarterly, 28(2), 283-322.   DOI
105 Liu, H., Ke, W., Wei, K.K., and Hua, Z. (2013). The Impact of IT Capabilities on Firm Performance: The Mediating Roles of Absorptive Capacity and Supply Chain Agility. Decision Support Systems, 54(3), 1452-1462.   DOI
106 Luo, Y. (1997). Partner Selection and Venturing Success: The Case of Joint Ventures with Firms in the People's Republic of China. Organization Science, 8(6), 648-662.   DOI
107 Miller, D. (1991). Stale in the Saddle: CEO Tenure and the Match between Organization and Environment. Management Science, 37(1), 34-52.   DOI
108 McCullen, P., and Towill, D. (2001). Achieving Lean Supply through Agile Manufacturing. Integrated Manufacturing Systems, 12(7), 524-533.   DOI