Strategic Insights into Supply Chain Resilience in Construction: Unveiling Influencing Factors and Dynamic Capabilities

Abstract

The research aimed to empirically assess the impact of dynamic capabilities on supply chain resilience within the construction industry in Saudi Arabia, specifically through the lens of innovation capabilities. Cross-sectional data were gathered from 320 construction industry employees in Saudi Arabia using a convenience sampling technique. A quantitative research approach was employed, with structural equation modelling (PLS-SEM) utilized to analyse the research hypotheses. The results indicated that the dimensions of dynamic capabilities have a direct, positive, and significant impact on the supply chain resilience of the Saudi Arabian construction industry. Additionally, the analysis revealed that while the relationship between most dynamic capabilities dimensions and supply chain resilience is partially mediated by innovation capabilities, the recovery ability dimension does not exhibit such mediation. The study provides theoretical contributions by highlighting the critical role of dynamic capabilities in bolstering supply chain resilience and underscores that innovation capabilities mediate this relationship, with the exception of recovery ability. Practically, construction firms in Saudi Arabia are advised to focus on developing dynamic capabilities and enhancing innovation to improve resilience and gain a competitive advantage.