Journal of Strategic Management Studies

Journal of Strategic Management Studies

The impact of supply chain dynamics on the firm sustainable performance with remanufacturing capability and supply chain resilience

Document Type : Research

Authors
Mostafa Ebrahimpour 1
Mahmoud Moradi 1
Aida Fallahpour 2
1 Associate Professor, University of Guilan, Guilan, Iran
2 MA graduated University of Guilan, Guilan, Iran
10.22034/smsj.2023.173202
Abstract
  Introduction: In recent decades, with the scarcity of world resources and the change of customer perspective beyond products and services, manufacturing and service companies must think beyond the economic benefits of their products and services and make every effort to maintain these resources and improve the country and the world. Considering the sustainability performance and its improvement, it provides the opportunity for firms to consider the economic sector, the environmental sector of the firm and the social sector, because the success of today's organizations mixed with the concept of sustainability and provides an opportunity for small and medium-sized companies to move towards sustainable economic development. Organizations need to leverage their creativity and innovation in order to maintain their sustainablility performance in today's complex and dynamic environment. The supply chain dynamics may be able to help. Another dynamic concept, supply chain resilience, introduced as a capacity for survival, adaptation and growth in turbulent times. In addition, dynamic capabilities are organizational processes that intentionally modify and change the organization's resource base and known as an emerging strategy to achieve the sustainable goals of an organization. The present study aimed to investigate the effect of supply chain dynamics on firm sustainability performance with mediating role of remanufacturing capability and supply chain resilience.
  Methodology: The statistical population of the study is small and medium-sized companies active in Sepidrood industrial Town. Data collected from 48 companies through a questionnaire. In each company, one manager (selected by available sampling method) was distributed a questionnaire. Cronbach's alpha coefficient and Composite reliability was also used to measure reliability. Given that for all variables, this value is above 0.7 and the value of CR is greater than 0.7. For validity, content validity (using experts' opinions) and construct validity with convergent validity (Average Variance Extracted) and Discriminant validity (The Fornell-Larcker Criterion) have been done. For all variables, the value of AVE is greater than 0.5 . The first order latent variable of this article, it was calculated by the software and its output is presented. But regarding the sustainability firm performance, due to its second order latent variable, it was manually calculated and reported. Data analysis in this study was done by structural equation modeling( SEM) with partial least squares approach using Smart PLS .
  Results and Discussion: The purpose of study was to investigate the effect of supply chain dynamics on firm sustainability performance with mediating role of remanufacturing capability and supply chain resilience. Therefore, by using a questionnaire, the necessary information collected from the Sepidrood industrial Town of Rasht, and Smart PLS used to analyze the data. The results show that supply chain dynamics affect remanufacturing capability and supply chain resilience directly. In addition, the remanufacturing capability has a positive effect on sustainability Firm performance and supply chain resilience. Supply chain resilience has a positive effect on the sustainability Firm performance directly and indirectly through the remanufacturing capability and supply chain dynamics. This paper did not confirm the role of supply chain dynamics and sustainability Firm performance.
  Conclusion: It is concluded that small and medium-sized companies in order to take advantage of sustainable performance opportunities, should consider the drivers of supply chain dynamics and provide the basis for the development of firm sustainable performance by using supply chain dynamics indirectly through remanufacturing capability and supply chain resilience. With strategies such as creating an opportunity by managers to study the environment and learn from it to increase the speed of adapting to the environment and responding to its changes, strengthening the role of innovation in the organization's products and services and operational processes, passing laws regarding the collection of obsolete products, strengthening this insight. that recycled products do not mean second-hand products, the use of reverse logistics to re-enter parts into the production flow can reduce the cost of product production for both the company and the customer to some extent, improve the risk management culture in the organization and etc, can improve sustainability performance according to the results of this study. This article provides relevant and useful information related to the sustainability performance of small and medium-sized companies and the factors affecting it. Therefore, in order to improve their sustainability performance, small and medium-sized companies can take advantage of the effect of the variables of the implemented model to achieve sustainable performance.
Keywords
sustainability firm performance
supply chain dynamics
remanufacturing capability
supply chain resilience

Subjects

  1. Adobor, H., & McMullen, R. S. (2018). Supply chain resilience: a dynamic and multidimensional approach. The International Journal of Logistics Management.‏

https://doi.org/10.1108/IJLM-04-2017-0093

  1. Akbari, Mohsen, Ebrahimpour Azbari, Mostafa and Hooshmand Chaijani, Milad (2016). The effect of institutional factors on the sustainable firms' performance. Business Management Perspectives, 15(4), 100-81.
  2. Akbarnejad Hosseini, Sh. (2015). Investigating the effect of quality management on organizational performance by mediating quality performance and innovation performance, Master Thesis in Industrial Management, Production Orient, Faculty of Literature and Humanities, University of Guilan. [in Persian]
  3. Ansari, Z. N., Kant, R., & Shankar, R. (2019). Prioritizing the performance outcomes due to adoption of critical success factors of supply chain remanufacturing. Journal of cleaner production, 212, 779-799. ‏https://doi.org/10.1016/j.jclepro.2018.12.038[in Persian]
  4. Ambulkar, S., Blackhurst, J., & Grawe, S. (2015). Firm's resilience to supply chain disruptions: Scale development and empirical examination. Journal of operations management, 33, 111-122. https://doi.org/10.1016/j.jom.2014.11.002 ‏
  5. Bag, S., Dhamija, P., Gupta, S., & Sivarajah, U. (2021). Examining the role of procurement 4.0 towards remanufacturing operations and circular economy. Production Planning & Control, 1-16.

https://doi.org/10.1080/09537287.2020.1817602

  1. Bag, S., Gupta, S., & Foropon, C. (2019). Examining the role of dynamic remanufacturing capability on supply chain resilience in circular economy. Management Decision, 57(4), 863-885. ‏https://doi.org/10.1108/MD-07-2018-0724
  2. Bernard, Sophie. (2011). Remanufacturing. Journal of Environmental Economics and Management, 67, 337-351. https://doi.org/10.1016/j.jeem.2011.05.005
  3. Centobelli, P., Cerchione, R., & Ertz, M. (2020). Managing supply chain resilience to pursue business and environmental strategies. Business Strategy and the Environment, 29(3), 1215-1246. ‏ https://doi.org/10.1002/bse.2428
  4. Peck HL & Christopher MG (2004) Building the Resilient Supply Chain, The International Journal of Logistics Management, 15 (2) 1-14.

https://doi.org/10.1108/09574090410700275

  1. Chowdhury, M. M. H., & Quaddus, M. (2017). Supply chain resilience: Conceptualization and scale development using dynamic capability theory. International Journal of Production Economics, 188, 185-204.

‏ https://doi.org/10.1016/j.ijpe.2017.03.020

  1. Eikelenboom, M., & de Jong, G. (2019). The impact of dynamic capabilities on the sustainability performance of SMEs. Journal of Cleaner Production, 235, 1360-1370.

‏ https://doi.org/10.1016/j.jclepro.2019.07.013

  1. Epstein, M. J., & Roy, M. (2001). Sustainability in action: Identifying and measuring the key performance drivers. Long range planning, 34(5), 585-604.

https://doi.org/10.1016/S0024-6301 (01)00084-X

  1. Davari, Ali and Rezazadeh, Arash. (1396). Structural equation modeling with PLS software. Fourth Edition, University Jihad Publishing Organization. [in Persian]
  2. Gölgeci, I., & Kuivalainen, O. (2019). Does social capital matter for supply chain resilience? The role of absorptive capacity and marketing-supply chain management alignment. Industrial Marketing Management.

 https://doi.org/10.1016/j.indmarman.2019.05.006

  1. Huo, B., G. M., & Wang, Z. (2019). Green or lean? A supply chain approach to sustainable performance. Journal of cleaner production, 216, 152-166.‏

https://doi.org/10.1016/j.jclepro.2019.01.141

  1. Ivanov, D., & Sokolov, B. (2019). Simultaneous structural–operational control of supply chain dynamics and resilience. Annals of Operations Research, 283(1), 1191-1210. https://doi.org/10.1007/s10479-019-03231-0
  2. Johnson, M. P., & Schaltegger, S. (2016). Two decades of sustainability management tools for SMEs: How far have we come? Journal of Small Business Management, 54(2), 481-505. https://doi.org/10.1111/jsbm.12154
  3. Jüttner, U., & Maklan, S. (2011). Supply chain resilience in the global financial crisis: an empirical study. Supply Chain Management: An International Journal, 16(4), 246-259. . https://doi.org/10.1108/13598541111139062
  4. Lee, H. Y., Seo, Y. J., & Dinwoodie, J. (2016). Supply chain integration and logistics performance: the role of supply chain dynamism. The International Journal of Logistics Management. https://doi.org/10.1108/IJLM-06-2015-0100
  5. Li, X., Wu, Q., Holsapple, C. W., & Goldsby, T. (2017). An empirical examination of firm financial performance along dimensions of supply chain resilience. Management Research Review, 40(3), 254-269. https://doi.org/10.1108/MRR-02-2016-0030
  6. Lintukangas, K., Kähkönen, A. K., & Hallikas, J. (2019). The role of supply management innovativeness and supplier orientation in firms’ sustainability performance. Journal of Purchasing and Supply Management, 25(4), 100558. ‏

https://doi.org/10.1016/j.pursup.2019.100558

  1. Luo, M., & Zhou, G. (2018). Feasibility Analysis of the Scheme of Internet of Things Based on Two-Level Supply Chain Dynamics. Wireless Personal Communications, 103(2), 1263-1272. https://doi.org/10.1007/s11277-018-5506-y
  2. Mashiloane, M. W., Mafini, C., & Pooe, R. D. (2018). Supply chain dynamism, information sharing, inter-organisational relationships and supply chain performance in the manufacturing sector. Acta Commercii, 18(1), 1-15.

https://doi.org/10.4102/ac.v18i1.547

  1. Mohaghar, Ali, Hashemi Petroudi, Seyed Hamid and Talaei, Hamidreza. (2016). Modeling the dynamics in the supply chain of a new product based on the system dynamics approach. Industrial Management Perspective, 1395 (24), 9-36. [in Persian]
  2. Ni, J., Zhao, J., & Chu, L. K. (2021). Supply contracting and process innovation in a dynamic supply chain with information asymmetry. European Journal of Operational Research, 288(2), 552-562.‏ https://doi.org/10.1016/j.ejor.2020.06.008
  3. Piramuthu, S. (2005). Knowledge-based framework for automated dynamic supply chain configuration. European Journal of Operational Research, 165(1), 219-230. ‏

https://doi.org/10.1016/j.ejor.2003.12.023

  1. Sabahi, S., & Parast, M. M. (2020). Firm innovation and supply chain resilience: a dynamic capability perspective. International Journal of Logistics Research and Applications, 23(3), 254-269. ‏ https://doi.org/10.1080/13675567.2019.1683522
  2. Sabzi Gorabsari, F. (2017). Provide a framework for assessing supply chain resilience using Bayesian networks, Master Thesis, University of Guilan, Department of Industrial Management. [in Persian]
  3. Seidi, M. (2017). Provide an inventory model in the reproduction_production system along with determining the acquisition price and sales price taking into account the quality level. Supply Chain Management Quarterly, 11 (47). 26-33. [in Persian]
  4. Sheikh Aghajani, M., & Ramezanian, M. R. (2019). Investigating the effect of supply chain dynamics capabilities on its performance mediated by supply chain resilience. Quarterly Journal of Development and Transformation Management, 1398(36), 55-65. [in Persian]
  5. Tan, Q., Zeng, X., Ijomah, W. L., Zheng, L., & Li, J. (2014). Status of end‐of‐life electronic product remanufacturing in China. Journal of Industrial Ecology, 18(4), 577-587. ‏ https://doi.org/10.1111/jiec.12124
  6. Wong, C. W., Lirn, T. C., Yang, C. C., & Shang, K. C. (2020). Supply chain and external conditions under which supply chain resilience pays: An organizational information processing theorization. International Journal of Production Economics, 226, 107610. ‏ https://doi.org/10.1016/j.ijpe.2019.107610
  7. Yildiz Çankaya, S., & Sezen, B. (2019). Effects of green supply chain management practices on sustainability performance. Journal of Manufacturing Technology Management, 30(1), 98-121. https://doi.org/10.1108/JMTM-03-2018-0099
  8. Yu, W., Jacobs, M. A., Chavez, R., & Yang, J. (2019). Dynamism, disruption orientation, and resilience in the supply chain and the impacts on financial performance: A dynamic capabilities perspective. International Journal of Production Economics, 218, 352-362. ‏ https://doi.org/10.1016/j.ijpe.2019.07.013

 

Journal of Strategic Management Studies
Volume 14, Issue 54
Spring 2023
Pages 97-117

  • Receive Date 29 September 2021
  • Revise Date 14 November 2021
  • Accept Date 06 January 2022