Supply chain performance, corporate entrepreneurship and firm performance

• Main Author: Quijano, Allan P.
• Format: text
• Published: Animo Repository 2011
• Subjects: Supply chain management; Entrepreneurship; Entrepreneurial and Small Business Operations; Operations and Supply Chain Management
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/13180
• Institution: De La Salle University

The resource-based theory of the firm, theory defines resources as "tangible and intangible assets that can affect the firm's ability to implement strategies to improve its efficiency and effectiveness." The firm uses these assets to achieve competitive advantage by exploiting resources to create competencies valued in the market place. The dilemma comes when the firm balances· the need to use resources to exploit existing competencies or to explore new competencies for future growth of the company (Rugman and Verbeke, 2002). In this paper, I posit that sound supply chain risk mitigation capability, operations capability and strategic information sharing and networking can become sources of competitive advantage of the firm,. Other mediating factors that affect the three independent variables were also included in the model for managers to have a more systemic view of the variables so more appropriate and tailor-fit actions can be undertaken by them (thus avoiding the proverbial cookie-cutter pitfall that most companies fall into). The main mitigating factor considered here is the level of corporate entrepreneurship in the firm which should be able to provide insight to managers that focusing on the technical aspects of supply chain may not be sufficient to bring their companies to the proverbial holy grail of strategic management - sustainable competitive advantage. Several articles which tackled the various facets of supply chain management and other related topics (particularly operations management) were used as basis for the hypotheses posited in this brief paper. Each hypothesis is supported by one or two articles which happened to have overlapping variables which I tried to link to each other to form a more systemic and holistic dynamics between a firm's performance and the possible sources competitive advantage.