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Financial performance of firms with supply chains during the COVID-19 pandemic: the roles of dynamic capability and supply chain resilience

Shih-Jung Juan (Department of Information Management, National Chung Cheng University, Chiayi, Taiwan)
Eldon Y. Li (Department of Information Management, College of Management, National Chung Cheng University, Chiayi, Taiwan)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 9 January 2023




This study proposes an integrated model to explore the relationships between dynamic capability and supply chain resilience (SCRE) and the relationships' impacts on firms' financial performance with supply chains (FPwSC) during the coronavirus disease 2019 (COVID-19) pandemic.


Based on resource-based theory and knowledge-based theory, the dynamic capability is classified into resource-based dynamic capability (RBDC) and knowledge-based dynamic capability (KBDC). The study collects 158 useable survey samples from manufacturers in Taiwan and analyzes the samples with the structural equation model.


The results show that knowledge is power; KBDC is crucial for FPwSC, SCRE and RBDC. In addition, SCRE mediates the relationship between KBDC and FPwSC. Finally, RBDC significantly suppresses FPwSC.

Research limitations/implications

Future researchers could replicate this study in other industries and expand this to other countries to generalize the results.

Practical implications

A firm with KBDC can adopt and implement strategies that exploit its internal strengths to respond to environmental opportunities, overcome internal weaknesses and mitigate external threats. Furthermore, a firm should fully utilize SCRE with proactive and reactive strategies. Exercising a firm's KBDC could facilitate SC collective intelligence to handle the risk of SC disruption and vice versa.


The study is the first to combine KBDC, RBDC and SCRE into an integrated model for FPwSC. Moreover, this study reveals that resilience relies on knowledge, not resources, as evidenced by SCRE being affected significantly by KBDC but not RBDC.



This research was partially funded by the Ministry of Science and Technology in Taiwan (Nos: 108-2410-H-194-106-MY3 and 111-2410-H-194-029-MY2). The authors give special thanks to Professor Jiuh-Biing Sheu of Business Administration at National Taiwan University in Taiwan, Professor Jie Yang of Management at University of Houston–Victoria in the USA and Professor Woo-Tsong Lin and Professor Wei-Hsi Hung of Department of Management Information Systems at National Chengchi University in Taiwan for their kind assistance in providing constructive review comments and revised opinions.

Declarations of interest: None.

Submission declaration and verification: The authors formally declare that at least 80% of the content in this paper has been changed from the original work, which was published previously at Decision Science Institute (DSI) 2019 annual conference. All cited materials have been properly credited with citations in the contexts and the references section.

Author credit statement: Shih-Jung Juan: Conceptualization, methodology, investigation, data curation, formal analysis, validation and writing – original draft. Eldon Y. Li: Supervision, funding acquisition, conceptualization, methodology and writing – review and editing.


Juan, S.-J. and Li, E.Y. (2023), "Financial performance of firms with supply chains during the COVID-19 pandemic: the roles of dynamic capability and supply chain resilience", International Journal of Operations & Production Management, Vol. ahead-of-print No. ahead-of-print.



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