Exploring the Nexus between Organizational Capital and Supply Chain Adaptability: Empirical Insights from Pakistan Manufacturing Sector

Ghulam Haider and Muhammad Zia Ul Haq

Journal of Accounting and Finance in Emerging Economies, 2025, vol. 11, issue 1, 109-128

Abstract: Purpose: This study examines the relationship between organizational capital and the different dimensions of supply chain adaptability based on the Intellectual Capital-Based View (ICBV) and Dynamic Capabilities Theory (DCT). This study helps to meet the urgent demand for supply chain flexibility prompted by the COVID-19 pandemic, which has caused the most serious disruption to global supply chains in recent years.Design/Methodology/Approach: Data were collected from 200 manufacturing concerns in Pakistan, and Smart-Partial Least Squares (Smart-PLS) software was employed for analysis to test the relationships posited. The model with the best goodness-of-fit indices was the saturated model (SRMR = 0.042, d_ULS, d_G = 0.065, Chi-square = 194.040, NFI = 0.911); the data were well-represented by the variables and showed the best adjustment of the overall model.Findings: The examination demonstrates that the dimensions of organizational capital are strong explication variables (of up to 69.9 percent) of the variation of supply chain adaptability. The findings support the notion that organizational capital has a significant effect on all three dimensions of supply chain adaptability. Organizational capital helps signals rapidly propagate inside supply chains and prepares firms to respond to disruptions flexibly.Implications/Originality/Value: This research underscores the critical role of organizational capital in enhancing supply chain adaptability, particularly during crises like the COVID-19 pandemic. It suggests that managers should actively develop and leverage their firm's organizational capital its internal routines and intellectual resources to proactively mitigate disruptions and maintain adaptable operations. The findings provide actionable insights for businesses to build more resilient supply chains capable of navigating unforeseen events.

Keywords: Dynamic capability view; Intellectual capital-based view; Organizational Capital; Supply chain adaptability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:11:y:2025:i:1:p:109-128

DOI: 10.26710/jafee.v11i1.3309

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