Supply chain capital and firm performance: the role of complementary capabilities

Abstract

Purpose Drawing on social capital theory, we extend the concept of supply chain capital to examine whether structural and relational capital can strengthen the complementary capabilities of suppliers and enhance their performance. Design/methodology/approach The empirical study was conducted on 161 precision mold equipment suppliers. To evaluate the mediated moderation model of supply chain capital, we applied multiple linear regression to test our hypotheses. Findings We found that both structural and relational capital positively affect the complementary capabilities of suppliers and that these capabilities mediate the relationship between supply chain capital and supplier performance. Furthermore, structural capital positively and significantly moderates the mediating effect on the relationship between complementary capabilities and supplier performance. Research limitations/implications This study provides suggestions for suppliers that are equipped with sufficient structural and relational capital to effectively enhance their complementary capabilities. By considering the interaction between structural capital and complementary capabilities, suppliers can effectively improve their performance. Originality/value This novel research develops a theoretical model to examine the antecedents and consequences of supplier complementary capabilities. We contribute to a new line of research on supply chain capital, which aims to explore how it affects the complementary capabilities of suppliers by examining a practical supply chain activity setting.

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