Reconfiguration, resilience, flexibility, and capability of SMES' supply chain : the case of manufacturing in China

Abstract

Supply Chain Reconfiguration (SCRec) and Supply Chain Resilience (SCRes) have become strategic responses for many companies confronted with disruptions in the Supply Chain (SC). Although existing literature demonstrates that SCRes significantly stimulates SCRec efforts, several notable gaps remain, including: 1) identifying a consistent and predictable precursor that integrally unifies diverse SC capabilities ; 2) understanding these dynamics, particularly in the context of manufacturing sectors in developing countries; 3) articulating the role of Supply Chain Flexibility (SCF) as a mediating variable between SC capabilities and both SCRes and SCRec, thus highlighting a critical gap. Responding to the call from previous scholarly works, this study explores the intricate relationships between various SC capabilities—including Acquire, Exploit, Assimilate, Alliance, and Transform Capabilities —and SCRes as well as SCRec in China manufacturing SMEs. SCF is investigated as a mediating variable that influences the effectiveness of these capabilities on SCRes and SCRec. Data from 284 mid and high-level management of China manufacturing SME firms were gathered through a cross-sectional survey. Employing PLS-SEM as the methodological tool, this study analyzes and interprets the collected data, finding that Acquire, Exploit, Alliance, and Transform Capabilities exert a direct and significant influence on SCRes and SCRec, with SCF demonstrating a mediating effect in these relationships. Moreover, the study quantifies the significant influence of SCRes on SCRec. This study enriches the literature on SCRes and SCRec by underscoring the importance of specific critical capabilities in advancing overall SC performance for manufacturing firms, thereby enabling them to better navigate the competitive conditions imposed by fluctuating business environments. This study represents a pioneering effort to unify these diverse elements within a comprehensive analytical framework, showcasing collectively impact SC dynamics and suggesting directions for future research.