Embracing Supply Chain Complexity for Enhanced Viability : The Influence of Strategic Information Flow and Network Capability

Abstract

The literature on supply chain complexity (SCC) has traditionally focused on its negative aspects, such as increased vulnerability to disruption. However, this study takes a different perspective, exploring the potential for SCC to trigger positive outcomes like enhanced supply chain viability (SCV). Informed by the dynamic capabilities view, we delve into the relationship between SCC and SCV, and how this is influenced by strategic information flow (SIF) and network capability (NC). Survey data from 242 firms is collected to examine hypothesized relationships. The data were analyzed using the partial least squares (PLS) structural equation modeling (SEM) technique. The findings reveal that exposure to SCC significantly indirectly influences SCV via both SIF and NC. Investigation of the serial mediation pathway (SCC → SIF → NC → SCV) indicates a partial mediation effect. This suggests that, while both mediators (SIF and NC) can independently enhance SCV, their combined sequential influence can synergistically offer additional advantages to achieving SCV. These findings provide a new perspective on SCC and guide managers and policymakers in establishing SCV in the face of SCC. For example, our findings suggest that investing in both NC and SIF enhances SCV more effectively than investing in either one alone.