Investigating The Sequential Mediating Roles of Supply Chain Agility and Supply Chain Innovation in the Impact of Absorptive Capacity on Firm Performance

Abstract

Purpose – This study investigates the direct impact of absorptive capacity, which is one of the dynamic capabilities built on the resource-based approach, on firm performance as well as its indirect impact through supply chain agility and supply chain innovation. Design/methodology/approach- The data used in the study were obtained from the managers of enterprises operating in the manufacturing sector in Turkey. After the reliability and validity analyses, the hypotheses formed to test the mediation effect of supply chain agility and supply chain innovation in the relationship between absorptive capacity and firm performance were subjected to mediation tests. Findings – As a result of the findings, it can be stated that absorptive capacity has a direct effect on supply chain agility, supply chain innovation and firm performance; supply chain agility has a direct effect on supply chain innovation and firm performance; and supply chain innovation has a direct effect on firm performance. Within the scope of mediation analyses, it was determined that supply chain agility and supply chain innovation play a mediating role separately and sequentially in the relationship between absorptive capacity and firm performance. Discussion – Factors affecting firm performance are frequently studied in the literature. Some studies investigate the effect of internal resources and some studies investigate the effect of external resources on firm performance. The resource-based approach argues that the factors that will increase firm performance cannot only be material resources.