Supply chain disruption and performance the role of information technology and supply chain managerial capability

Abstract

The dynamic and uncertain business landscape renders companies susceptible to supply chain disruptions. The complexity and dynamism of supply chains, intensified by globalization and technological progress, further escalate the risk of such disruptions. Notably, the healthcare supply chain has encountered severe setbacks due to disruptions like the COVID-19 pandemic, leading to medical supply shortages, heightened costs, reduced revenue, and decreased patient satisfaction. This upheaval has underscored the vulnerability of supply chains, necessitating enhanced resilience and preparedness. This study delves into the impact of supply chain disruption on supply chain performance, examining the mediating role of supply chain managerial capability and the moderating effect of information technology. Rooted in structural contingency theory and dynamic capability, the research formulates and investigates five objectives and corresponding hypotheses. Employing an explanatory research design with a quantitative approach, the study collected primary data through standardized questionnaires completed by 289 professionals from various health facilities in Ghana. Utilizing SmartPLS 4 for data processing and partial least square-structural equation modelling (PLS-SEM) for analysis, the hypotheses were tested. Findings revealed that supply chain disruptions significantly influence supply chain performance in the healthcare sector. However, this impact is reduced by information technology, and supply chain managerial capabilities act as a partial mediator in this relationship. Supply chain disruption negatively affects both supply chain performance and managerial capabilities. Remarkably, supply chain managerial capability transforms this negative effect into a positive one on performance. In light of these outcomes, the study underscores the importance for policymakers, practitioners, and management to closely monitor supply chain disruptions, given their adverse effects on supply chain performance. Furthermore, the study highlights the significance of fostering supply chain managerial capabilities to enhance network performance during disruption.