Manufacturing planning and control driven supply chain risk management: A dynamic capability perspective

This paper builds on the dynamic capability view to theorize the role of manufacturing planning and control (MPC) activities and supply chain risk management (SCRM) capabilities towards the firm's operational performance. The study hypothesize that companies enhance MPC activities to respond to supply chain uncertainty (SCU) and enable SCRM that positively impacts operational performance. Data from 356 manufacturing companies in developing countries and regions, drawn from the sixth version of the International Manufacturing Strategy Survey is used to examine the hypothesized model empirically. The findings indicate that the MPC activities effectively respond to SCU and act as an enabler of preventive and reactive SCRM. Furthermore, the paper finds that MPC activities drive operational performance through effective SCRM. Also, the findings suggest that preventive risk management practices impact operational performance only through reactive risk management. Finally, the paper enriches the literature by identifying and discussing the theoretical and managerial significance of the role of MPC activities in the association between SCU, risk management practices, and firm performance.