Impact of Firm Dynamic Capabilities on Fresh Agri-Supply Chain Performance: The Moderating Role of Supply Chain Uncertainty

Research by: Thi Ngan Pham, Kha Linh Nguyen Pham, & Albert Wee Kwan Tan

Executive Summary

The fresh agricultural supply chain (FASC) plays a critical role in emerging economies like Vietnam, where agriculture remains a significant contributor to national GDP and rural livelihoods. However, the sector is characterized by high perishability, fragmentation, and volatility, making it particularly susceptible to disruptions caused by climate change, pandemics, logistics inefficiencies, and market fluctuations. To enhance performance and resilience in such a complex environment, this study investigates the role of dynamic capabilities—namely, operational capability (OC), collaboration capability (CC), and learning capability (LC)—in driving fresh agricultural supply chain performance (FASCP), with a focus on how these relationships are moderated by supply chain uncertainty (FASCU).

Grounded in Dynamic Capabilities Theory (DCT) and Contingency Theory (CT), the study adopts a mixed-methods approach, combining quantitative modeling via Partial Least Squares Structural Equation Modeling (PLS-SEM) and qualitative insights from expert interviews. This dual-method design enhances both the generalizability of the findings and their contextual relevance, particularly for stakeholders navigating Vietnam’s rapidly evolving agri-food ecosystem.

To ensure a robust and representative dataset, a purposive sampling strategy was employed. Participants were selected from a diverse range of roles, including agricultural cooperatives, retail managers, transportation supervisors, and cold chain operators, thereby covering multiple critical stages of the supply chain. Geographic and sectoral diversity were prioritized to reflect variations in production practices, infrastructure quality, and market dynamics across different regions of Vietnam.

A total of 279 structured survey responses were collected through professional networks such as the Vietnam Logistics Business Association and the Vietnamese Agricultural Exchange. After excluding incomplete or non-relevant responses, the final sample comprised 250 valid responses. Among them, 75.7% represented small- and medium-sized enterprises (SMEs), while 24.3% were from large enterprises. Respondents’ roles included agricultural cooperative leaders (7.3%), retail managers (28.6%), transportation managers (15.4%), cold chain managers (23.4%), and other supply chain professionals (25.6%). This comprehensive sample structure allows for a nuanced analysis of the challenges and strategies employed by stakeholders across the FASC in Vietnam.

Key Findings

• OC and CC are both statistically significant predictors of FASCP, with OC having the strongest impact. These capabilities help firms respond effectively to time sensitivity and quality control demands.
• LC, while showing limited short-term influence, proves to be strategically important for long-term adaptability, especially in moderately uncertain environments.
• FASCU significantly moderates the effects of OC and CC, emphasizing that the effectiveness of these capabilities is context-dependent. Under high uncertainty, rigid operational routines and static collaboration mechanisms become less effective.

Theoretical Contributions

• The study empirically validates DCT by demonstrating that capabilities must be adaptively deployed, not merely possessed.
• It extends CT by confirming that capability–performance relationships are contingent on external uncertainty, reinforcing the importance of environmental alignment.
• The introduction of a multi-dimensional construct of FASCU—capturing demand, supply, and price volatility—adds depth to the understanding of uncertainty in agri-food supply chains.
• Methodologically, the mixed-methods design strengthens the reliability and applicability of findings in real-world settings.

Managerial and Policy Implications

• Managers should invest in predictive analytics, real-time coordination tools, and structured learning systems to boost adaptability and responsiveness.
• Policymakers are urged to enhance cold chain infrastructure, support digital transformation (e.g., blockchain, IoT), and facilitate cross-sector coordination through public–private partnerships.
• Logistics providers must adopt adaptive routing, GPS-enabled monitoring, and contingency planning to support freshness and reduce waste.
• Export-oriented agribusinesses should prioritize compliance with international standards and invest in digital traceability to access stable and high-value markets.

Conclusion

This study offers a comprehensive framework for strengthening supply chain performance and resilience in Vietnam’s fresh agricultural sector. By highlighting the interaction between dynamic capabilities and environmental uncertainty, it provides both theoretical advancement and practical guidance for stakeholders seeking to modernize and stabilize agri-food supply chains in Vietnam and other similarly structured emerging economies.

To cite this article: Pham, T. N., Pham, K. L. N., & Tan, A. W. K. (2025). Impact of firm dynamic capabilities on fresh agri-supply chain performance: The moderating role of supply chain uncertainty. International Journal of Information Systems and Supply Chain Management, 18(1), 36. https://doi.org/10.4018/IJISSCM.383298

To access the article: https://www.igi-global.com/article/impact-of-firm-dynamic-capabilities-on-fresh-agri-supply-chain-performance/383298

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