The Mediating Role of Supply Chain Agility in the Relationship between Absorptive Capacity and Financial Performance

The main objective of the current study is to investigate the direct impact of the absorptive capacity and supply chain agility on the performance of manufacturing firms in Malaysia. In addition to that the mediating role of supply chain agility in the relationship between absorptive capacity and sound production. The study has used the survey-based methodology and response rate is turned out to be 53 percent. The current research used large sample size, i.e. 231 firms, which is sufficient to perform statistical analysis and to obtain ultimate outcomes, but larger sample sizes can also be employed in future researches to confirm the mediating effect revealed in this study The SEM-PLS is used to analyze the data. The empirical findings support the supply chain competitiveness study because it inspires to hold both AC and SCA as dynamic capabilities for identifying additional synergies (Khan & Wisner, 2019), concerning a firm's performance improvement. In this study, the data suggest that AC can be reshaped to superior performance via SCA. Various industrial management implications were discussed in this paper. However, these limitations must be considered keeping in view the limitations of this research. Both AC and SCA constructs have been measured from managerial point of view; although they have already been employed in other researches. Therefore, this research could be replicated in future studies using dynamic capabilities measures (Pores & Camison, 2016). Secondly, the nature of this study is cross-sectional which only suggests existing relationships among model variables. However, there is a further need for a longitudinal analysis to confirm and demonstrate the causality among variables.