Supplier management practices have changed dramatically in recent years, after COVID-19 and recently with the increasing global geopolitical tensions. In this VUCA world, conditions will keep changing. However, procurement managers must adapt to these circumstances and maintain supply continuity. Literature showcases various organizational capabilities to navigate such complex situations. However, there is a lack of studies on how dynamic capabilities for agile, digital, resilient and sustainable (ADRS) supplier management are developed within organizations. Hence, the current study aims to identify the organizational capabilities that help shape ADRS supplier management dynamic capabilities. Secondly, understand how the ADRS supplier management dynamic capabilities offer a competitive advantage.
Using a qualitative approach and theoretical sampling method, the data was collected from 50 supply chain experts and analyzed using ATLAS.ti software.
The findings revealed the emergence of various second-order themes, such as capabilities for agile supplier management, digital supplier management, resilient supplier management, sustainable supplier management and governance mechanisms in ADRS supplier management. These second-order themes are combined to develop ADRS supplier management dynamic capabilities. ADRS supplier management dynamic capabilities will help firms explore efficiently and seize new opportunities. It serves as a source of competitive advantage in this VUCA business environment, thereby enhancing the quality of the supply chain management.
The practical implementation of the ADRS supplier management model is presented that enhances the supply chain quality. This article can be useful for educators, scholars, industry practitioners and policymakers. For instance, educators can discuss ADRS supplier management dynamic capabilities in MSc and MBA supply chain courses, specifically in the “purchasing and supply chain digitalization and sustainable quality” course. It could also be taught in the “procurement, suppliers, and provider management” course. Scholars can conceptualize empirical models based on the ADRS model. In addition, industry practitioners will get an idea about integrating various organizational capabilities to develop ADRS supplier management dynamic capabilities. Policymakers can develop public procurement policies keeping in mind the ADRS supplier management model.
This is the first study to develop an ADRS supplier management dynamic capabilities model for purchasing and supply management in a VUCA environment.
