Using the framework of resource-advantage theory, this paper informs our understanding of factors that mitigate supply chain risk. The research creates a manufacturing geographic diversification (MGD) model as a hedging risk management strategy and empirically measures the antecedents and outcomes of MGD. Using survey research, this will be the first study to employ organizational operant resources such as supply chain disruption orientation (SCDO) and risk management infrastructure (RMI) to create a sustainable competitive advantage through MGD, thereby producing improved customer-oriented performance and firm performance. The results reveal that MGD significantly mediates the relationships between our antecedent and outcome variables. Post hoc analysis reveals a nonlinear effect of RMI on MGD, suggesting exponentially higher pursuit of MGD with higher levels of RMI. These findings underscore the critical role of SCDO and RMI in supporting MGD as a strategic approach to enhance performance in the apparel, footwear, and accessories (AFA) industry. By aligning operational strategies with organizational goals, firms can achieve superior performance outcomes and deliver customer value, creating a sustainable competitive advantage.
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