WHEN DO SUPPLY CHAIN CAPABILITIES ENHANCE RESILIENCE? THE MODERATING ROLE OF ENVIRONMENTAL DYNAMISM IN EMERGING MARKET SUPPLY CHAINS

Abstract

This study examines how environmental dynamism influences the effectiveness of supply chain capabilities in enhancing organizational resilience. Drawing on contingency theory and the dynamic capability’s view, it investigates the moderating role of environmental dynamism in the relationship between supply chain visibility, agility, coordination, flexibility, and resilience. Data were collected through a cross-sectional survey of non-alcoholic beverage manufacturing firms in Kenya, yielding 278 usable responses. Hierarchical moderated regression and the PROCESS macro were used to test interaction effects. The findings reveal that environmental dynamism significantly moderates the capability–resilience relationship. Agility (β = 0.356, p < .001) and flexibility (β = 0.278, p < .001) exhibit stronger positive effects on resilience under highly dynamic conditions. Conversely, visibility (β = −0.214, p < .001) and coordination (β = −0.142, p = .008) become less effective as environmental dynamism increases. These results demonstrate that supply chain capabilities are not universally beneficial but vary in effectiveness depending on environmental conditions. The study extends contingency theory within supply chain resilience research by highlighting the context-dependent value of different capabilities. The findings also provide practical guidance for managers seeking to strengthen resilience by prioritizing adaptive capabilities in turbulent environments.