Abstract:
The current study adds to the growing literature by using a social exchange perspective on the development of supply chain agility through integrated logistics capabilities and its impact on firm performance. Specifically, the study explores the role of 1. trust, 2. commitment, 3. reciprocity, and 4. power under social exchange theory in influencing integrated logistics capabilities. This will in turn affect supply chain agility. Agile supply chains will further impact Operational and Relationship Performance. We also contend that information sharing and strategic sourcing moderate the effect of integrated logistics capabilities on SC agility in a way that higher levels of these moderators would make the relationship more pronounced. The research strategy of the study was based on the quantitative research method in which a surveybased approach was followed to get the required number of responses i.e. 384 using a questionnaire as a data collection tool. The collected primary data was applied with the structural equation model (SEM) using PLS Smart. The results of the study revealed that there is a significant positive impact of all four factors i.e. trust, commitment, reciprocity, and power on integrated logistic capability. Integrated logistic capability seems to positively affect SC agility. Similarly, SC agility seems to have a positive effect on both operational performance and relationship performance. Furthermore, both the moderators i.e. information sharing and strategic sourcing seem to have a direct positive effect on agility however, the moderation effect remained inconclusive. This shows that firms need to prioritize the commitment level among supply chain partners to improve integrated logistics capability, operational performance, relationship performance, and supply chain agility. This also enforce firms to invest in technologies and processes in fostering timely and accurate information sharing to improve also operational and relationship performance. This study has made explicit the role of integrated logistic capability, supply chain agility in translation of operational and relationship performance with the role of information sharing and strategic sourcing.
