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Enhancing global supply chain resilience in the Indonesian medical device industry: a dynamic capability perspective

Aluisius Hery Pratono (Faculty of Business and Economics, Universitas Surabaya, Surabaya, Indonesia)
Asri Maharani (Division of Population Health, Health Services Research and Primary Care, The University of Manchester, Manchester, UK and Department of Nursing, Faculty of Health and Education, Manchester Metropolitan University, Manchester, UK)

Journal of Asia Business Studies

ISSN: 1558-7894

Article publication date: 4 April 2023

332

Abstract

Purpose

This paper aims to understand how the global supply chain in the medical device industry embraces resilience by adopting agility approach following COVID-19.

Design/methodology/approach

This study adopts an interpretative approach to examine the qualitative data drawn from interviews and observation under dynamic capability theory. The data collection concerned multiple stakeholders involved in purchasing and supply management in the medical device market: manufacturing suppliers, channel partners, hospital management and end-users. The coding analysis uses an application that helps the researchers categorise the nodes and extend the existing literature.

Findings

The findings show that global supply chain leaders leverage the dynamic capability by centralising the business process decision to respond to the shifting demand from the local governments to the national health ministry, shaping the partnership style from the area- to the funnel-based agreement, even though it exposes a risk of product acceptability from the end-users, encouraging the distributor to convert just-in-time approach into holding safety stock to avoid penalty from missing the procurement target even and restructuring the local partners’ debts to manage long-term performance.

Originality/value

This study extends the emerging literature in international business by underpinning dynamic capability theory.

Keywords

Acknowledgements

The authors thank the anonymous reviewers for their careful reading of our manuscript. They also thank the anonymous research participants for sharing their experiences.

Funding: Indonesia Ministry of Education and Culture 942/ST/FBE/I/2023.

Citation

Pratono, A.H. and Maharani, A. (2023), "Enhancing global supply chain resilience in the Indonesian medical device industry: a dynamic capability perspective", Journal of Asia Business Studies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JABS-03-2022-0081

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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