Does independent goal interdependence impair dynamic capability? The mediating role of supplier integration and the moderating role of internal integration

Rapidly changing technological and marketing environments challenge the survival of business organizations. Developing dynamic capability is critical in helping companies respond to today's turbulent environments. Thus, fruitful studies on the antecedents of dynamic capability have been conducted. However, in the context of the supply chain, little is known about the factors that can be harmful to dynamic capability. Drawing on the theory of cooperation and competition, the first purpose of this study is to examine the relationship between independent goal interdependence with suppliers and dynamic capability by focusing on the mediating role of supplier integration. Combining the information processing theory and transaction cost economics with the theory of cooperation and competition, the second purpose of this study is to discuss and test the moderating role of internal integration.

Using a carefully designed questionnaire, a large-scale survey was employed to collect data in China. The senior manager (e.g. president, vice president, chief executive officer [CEO], executive or purchasing manager) of each company was asked to participate in our survey. The final valid sample in our survey consisted of 233 companies. Hierarchical multiple regression statistical analysis and bias-corrected bootstrapping methods were applied to test the correlation, mediation, moderation and moderated mediation relationships between variables.

The authors found that independent goal interdependence negatively influences dynamic capability through frustrating supplier integration. In addition, the moderated mediation model analysis shows that internal integration weakens the positive direct effect of supplier integration on dynamic capability while neutralizing the negative indirect effect of independent goal interdependence on dynamic capability. The theoretical and managerial implications of these results are discussed.

First, starting from the goal interdependence and supply chain management perspectives, this research not only is consistent with remote theoretical research that explains why interdependence among organizations influences the capability to enhance competitive advantage but also incorporates relevant internal and external factors that influence dynamic capability. Second, by proposing an innovative boundary factor – internal integration – this study also contributes to adjusting the predictions of the theory of cooperation and competition. Third, focusing specifically on the negative antecedent of dynamic capability can provide a better understanding of the antecedents that cause companies to have weakened dynamic capability.