Background: The COVID-19 pandemic created an urgent need to understand how supply chains can withstand and adapt to severe disruptions. While prior research has highlighted the importance of supply chain resilience and robustness in managing disruptions, less attention has been given to the mechanisms through which firms transform these capabilities into financial outcomes. Drawing on the Resource Orchestration Perspective (ROP), this study proposed that absorptive capacity acts as a cognitive orchestration mechanism that enables firms to more effectively translate resilience and robustness capabilities into financial performance during periods of major disruption. Methods: Using a quantitative approach, this research employed partial least squares structural equation modeling to analyze data from 66 supply chain managers who experienced varying levels of supply chain disruption following the COVID-19 pandemic. Results: Both supply chain resilience and robustness affect organizational absorptive capacity, which, in turn, enhances performance. Conclusions: This study extends ROP and provides new insights into how firms can strategically leverage disruption-related knowledge to enhance performance in turbulent environments by identifying absorptive capacity as a key mechanism linking resilience capabilities to financial outcomes. In practice, it provides managers with valuable insights to prioritize AC development and reduce financial risks associated with disruptions.
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Mohammad Asif Salam
Mohammed Abu Jahed
Mahmoud Abdulhadi Alabdali
Logistics
King Abdulaziz University
Saudi Arabia Basic Industries (Saudi Arabia)
St. Bonaventure University
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Salam et al. (Mon,) studied this question.
www.synapsesocial.com/papers/69df2abce4eeef8a2a6afbda — DOI: https://doi.org/10.3390/logistics10040089