Supply Chain Resilience as a Higher Order Dynamic Capability: The Mediating Role of Supply Chain Agility in SMEs

Abstract

This study examines how supply chain resilience (SCR) is formed within a dynamic capability framework by positioning it as a higher-order capability. Drawing on the Dynamic Capabilities View (DCV), the study proposes that dynamic digital capabilities (DDC) and relational capability (RC) influence supply chain resilience both directly and indirectly through supply chain agility (SCA). Data were collected from 225 SMEs and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that DDC and RC significantly enhance SCA, which in turn has a strong positive effect on SCR. Both DDC and RC also exhibit significant direct effects on SCR, indicating complementary mediation. These findings confirm that SCR emerges through a hierarchical capability-building process, where agility acts as a transformation mechanism linking lower-order capabilities to higher-order resilience. This study contributes to theory by clarifying the hierarchical relationship between agility and resilience and integrating digital and relational capabilities into a unified model. Managerially, the results highlight the importance of capability orchestration in building resilience under resource constraints.