Does social capital affect supply chain performance? Establishing an underlying mechanism and a boundary condition
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 21 March 2024
Abstract
Purpose
This study examines the direct and indirect effects of social capital on supply chain performance via supply chain quality integration (SCQI), which refers to integrating supply chain partners from the perspective of quality management. It also examines the moderating role of environmental uncertainty in the link between social capital and SCQI and determines the conditional indirect effect of social capital on supply chain performance via SCQI.
Design/methodology/approach
Data were collected using a time-lagged research design through a self-administered survey of supply chain professionals in manufacturing firms in Pakistan. Hayes’ PROCESS Macro was used to test the hypotheses.
Findings
The results show a positive relationship between social capital and supply chain performance. SCQI partially mediates the relationship between social capital and supply chain performance. Environmental uncertainty significantly moderates that relationship in such a way that firms that operate under high environmental uncertainty are more likely to use their social capital to develop SCQI than firms that operate under low environmental uncertainty.
Practical implications
The study has practical implications for managers who seek to implement SCQI practices using social capital. Leveraging social capital across the supply chain fosters strong connections and a quality-oriented approach across the supply chain, and improves overall performance. Managers can use the power of social capital to navigate environmental uncertainty.
Originality/value
This study’s originality lies in its drawing on the dynamic capability theory and contingency theory and integrating the dispersed scholarly work on social capital, SCQI, and supply chain performance under the boundary condition of environmental uncertainty.
Keywords
Acknowledgements
The authors would like to acknowledge funding from the Higher Education Commission (HEC), as the first author has received scholarship (No: 518-119022-2BE5-016) from HEC, Pakistan, for her doctoral program.
Citation
Chohan, A., Hussain, G. and Shafique, I. (2024), "Does social capital affect supply chain performance? Establishing an underlying mechanism and a boundary condition", International Journal of Productivity and Performance Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJPPM-06-2023-0291
Publisher
:Emerald Publishing Limited
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