Effect of supply-chain resilience on firm performance and competitive advantage

Purpose: The purpose of this paper is to investigate the extent to which firms in the Sri Lankan apparel industry practice supply-chain-resilience (SCRes) capabilities and examine whether SCRes practices affect the performance and competitive advantage of those firms. Design/methodology/approach: Uses a conceptual framework to assess SCRes capabilities and to investigate their impact on firm performance and competitive advantage. Uses partial least squares structural equation modeling (PLS-SEM) to quantitatively analyze questionnaire data collected from 89 Sri Lankan apparel manufacturers. Findings: In the presence of SCRes capabilities in the apparel industry, this study finds that supply-chain risk-management culture positively affects SCRes capabilities, namely re-engineering, agility and collaboration. Agility shows the greatest influence on firm performance and competitive advantage. Research limitations/implications: This study is limited to the apparel industry sector (a manufacturing sector) in Sri Lanka to maintain the uniformity of the research constructs. Practical implications: Results imply that management should pay more attention to enhancing SCRMC and prioritizing their SCRes capabilities. Originality/value: This study is the first to assess SCRes capabilities in the apparel-manufacturing sector and examine the impact of SCRes capabilities on firm performance and competitive advantage.