Supply Chain Management
Big Data Analytics in Supply Chain Management: Dynamic Capabilities View

Article Details
Pub. Date : Sep 2022
Product Name : The IUP Journal of Supply Chain Management
Product Type : Article
Product Code : IJSCM010922
Author Name : Pankaj M Madhani
Availability : YES
Subject/Domain : Strategic
Download Format : PDF Format
No. of Pages : 26



Supply chains generate huge amounts of data (i.e., Big Data) that companies can turn into intelligence through analytics. Big Data usage and Big Data Analytics (BDA) deployment can deliver competitive advantages across various supply chain decisions as it builds multiple capabilities for supply chain networks. This paper explains how Big Data usage and BDA capabilities contribute to improving supply chain performance, based on the Dynamic Capabilities View (DCV). The BDA is a type of dynamic capability of an organization, and its deployment in supply chain operations effectively manages demand volatility, efficiently handles cost fluctuations, and improves the visibility, flexibility, and integration of supply chain processes across the networks. BDA as a dynamic capability enables firms to respond to changing external environment by reconfiguring resources and capabilities of supply chain networks. The paper develops various frameworks to understand and study the impact of BDA on supply chain performance through the lens of DCV.


A supply chain is defined as "the network of organizations that are involved, through upstream and downstream linkages, in different processes and activities that produce value in the form of products and services delivered to the ultimate consumer" (Christopher, 2016). The supply chain involves the upstream and downstream flows of products, services, finances, and information from the ultimate supplier to the ultimate customer, and the outcomes of the supply chain, such as revenue growth, asset utilization, and cost. The goal of Supply Chain Management (SCM) is to realize the coordination of activities across the supply chain, create value for customers, and increase the profitability of every link in the chain (Hitt et al., 2016). The short-term objectives of SCM are primarily to increase productivity and reduce inventory and cycle time, while the long-term objectives are to increase market share and profits for all members of the supply chain (Tan et al., 1998). SCM seeks to improve the long-term performance of the individual company and the supply chain as a whole by coordinating business functions (Mentzer, 2001). Supply chains have been viewed by firms as key levers for competitive advantage as the market competition has evolved from "firm versus firm" toward "supply chain versus supply chain" (Ketchen and Hult, 2007).