Abstract
The complexity and uncertainty in the dynamic business environment expose organisations to risks that may be caused by external or internal factors such as technical failure, human error, strikes, equipment failure, pandemic diseases, natural disasters or terrorist attacks. These events cause market shocks as they lead to disruptions in the production process and the flow of products; in addition, they cause supply and demand fluctuations. One of the tools that organisations can use to enhance their sustainability and performance during disruptions is to build dynamic capabilities through establishing strong networks and alliances in the form of a cluster. This research proposes links between the three dimensions of sustainability (environmental, social and economic) and dynamic capabilities (resilience and absorptive capability) in a supply chain cluster context. It develops a conceptual framework that presents supply chain cluster design characteristics (geographical concentration, networked collaboration and supporting services) as tools for enhancing sustainability through dynamic capabilities by combining a number of theoretical views, (systems theory, extended resource-based view and dynamic capability theory), to help organisations maintain performance during disruptions. Focusing on sustainability and building environmental-friendly clusters are among the aspects of sustainability development strategy of the Egyptian government 2030. Through the developed conceptual framework, this research will investigate the impact of supply chain cluster design characteristics on sustainability through achieving dynamic capabilities, in addition to investigating the impact of sustainability on organisational performance.In order to achieve the main aim of the research, data were collected using 811 questionnaire responses from organisations operating in the Egyptian market. Structural equation modelling was used to investigate the relationships between the research variables. Results indicated that there is a direct link between supply chain cluster design characteristics, namely geographical concentration, networked collaboration and supporting services and dynamic capabilities (resilience and absorptive capacity). In addition, dynamic capabilities can significantly enhance the three dimensions of sustainability (environmental, economic and social). Furthermore, dynamic capabilities were found to be significantly mediating the relationship between design characteristics and sustainability. Finally, sustainability can be used to enhance operational and financial performance except for environmental sustainability, which had no significant impact on organisational performance. The structural equation modelling technique adopted to analyse the quantitative data allows illustration of how dynamic capabilities (resilience and absorptive capacity) affect sustainability (environmental, social, economic) and ultimately impact organisational, operational and financial performance, while simultaneously taking into consideration the effect of the three supply chain cluster design characteristics (geographical concentration, networked collaboration and supporting services) and organisation size, role and type. The use of standardised data and control variables in this study helps extend systems theory, dynamic capabilities theory and resources-based view by promoting supply chain clusters as a system in which sub-elements (cluster members) can form links and depend on each other to create a pool of resources. In addition, this extension strengthens the generalisability of the abstract ideas in the theories conceptualised in the framework, as previous research has focused only on high-technology sectors in developed countries. This study fills an additional research gap by testing the relationships proposed in the conceptual framework in a developing county (Egypt), while controlling for different business sectors. It also fills the research gap regarding the relationships between dynamic capabilities and sustainability, and between sustainability and financial and nonfinancial organisational performance. In addition, it provides a more holistic picture by focusing on three dimensions of sustainability. The empirical results will also fill a gap in the literature regarding the impact of clustering on dynamic capabilities. The results from previous research on clusters and dynamic capabilities lack generalisability because they have tended to be based on case studies. Furthermore, there is a lack of evidence on how supply chain cluster design characteristics may be linked to performance through dynamic capabilities and sustainability. The focus on the link between dynamic capabilities, the three dimensions of sustainability and organisational performance will allow organisations to use supply chain cluster design characteristics as tools to enhance sustainability and maintain an acceptable level of performance. In addition, it will help organisations operating in Egypt to sustain their performance and compete globally in spite of strong market fluctuations.
Date of Award | 19 Jan 2021 |
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Original language | English |
Supervisor | Snow Wu (Main Supervisor) & Julia Meaton (Co-Supervisor) |