Purpose Despite the importance of dynamic capabilities (DCs) within organizations, our knowledge of how such capabilities emerge is still relatively limited. This paper aims to advance the microfoundations of DCs theory by exploring how deploying Lean practices can gradually develop into organizational routines and then, together, form a continuous improvement (CI) dynamic capability (DC). Design/methodology/approach We conducted a four-year retrospective process study in which we compared two Dutch university-based hospitals that had both started implementing Lean. Abductive cross-case analysis was undertaken based on the transcripts of 48 interviews, 13 frontline meeting observations, hospital documents and archival key performance data. Findings We identified how a staged process engaged top and cross-functional hospital leaders (including middle managers and frontline leaders) in capability development. This process gradually developed routines, which established four interconnected capabilities that, together, formed a hospital-wide CI DC: (1) a coherent improvement system, (2) hospital-wide collaborative synergy, (3) integrated accountability, linking strategy with daily operations, and (4) learning-to-learn among employees and teams. Originality/value A conceptual framework for developing strategic DCs is proposed. It enriches the microfoundations of DCs theory by explaining how evolving organizational routines may fuse, fostered by leaders across all hierarchical levels, which then can form a CI DC within the organization. The findings offer valuable insights for managers of large, knowledge-intensive organizations seeking to implement organization-wide improvement.

Purpose Drawing upon the behavioral theory of the firm (BTOF) and agency theory, this study examines how performance feedback influences a firm's supplier concentration and how this effect is further moderated by the competitive intensity of the environment in which the firms operate. Design/methodology/approach Using data comprising 14,652 firm-year observations from 2,512 Chinese listed firms over the period 2008–2019, we tested our research model using fixed-effect regression. To address endogeneity concerns, we employed Heckman's two-stage selection model. We also conducted several robustness tests, including replacing social performance with historical performance and using return on equity (ROE) instead of return on assets (ROA) to calculate performance feedback. In addition, given the potential time persistence of supplier concentration, we applied generalized method of moments (GMM) estimation to account for dynamic panel bias. Findings This study finds a negative relationship between negative performance feedback and supplier concentration, and a positive relationship between positive performance feedback and supplier concentration. Furthermore, competitive intensity mitigates the negative relationship between negative performance feedback and supplier concentration but has no significant effect on the relationship between positive performance feedback and supplier concentration. Originality/value Grounded in the BTOF and agency theory, our study shifts the focus from static analyses of how supplier concentration affects firm performance to an examination of how performance feedback drives dynamic adjustments in supplier concentration. By further introducing competitive intensity as a contingency factor in these relationships, our study contributes to the operations and supply chain management (OSCM) literature by providing a comprehensive understanding of how different types of performance feedback influence supplier concentration under varying environmental conditions.

Purpose Research on supply chain management that specifically addresses passive opportunism is limited. This paper aims to fill this gap by drawing on transaction cost economics to examine the effects of two crucial aspects of contractual governance (i.e. contractual control provisions and contractual coordination provisions) on the passive opportunism (i.e. contractual passive opportunism and responsive passive opportunism) of suppliers. Furthermore, this study uncovers virtual governance as a boundary condition that affects the effect of contractual provisions on passive opportunism. Design/methodology/approach Using survey data collected from 164 firms, this study employed ordinary least squares (OLS) regression to evaluate the proposed hypotheses. Findings This study finds that contractual control provisions mitigate contractual passive opportunism but increase responsive passive opportunism, while contractual coordination provisions effectively reduce responsive passive opportunism. Moreover, virtual governance exacerbates the negative relationship between contractual control provisions and contractual passive opportunism, and lessens the effect of contractual control provisions on responsive passive opportunism. However, virtual governance weakens the negative effects of contractual coordination provisions on responsive passive opportunism. Originality/value First, this study contributes to transaction cost economics and relationship governance literature by shedding light on how contractual governance can be effectively used to manage passive opportunism, an important yet under-investigated issue in buyer–supplier relationships. Second, it offers a more nuanced understanding of governance–opportunism relationship by highlighting the complex and multifaceted nature of both contractual governance and passive opportunism. Third, by introducing virtual governance as a boundary condition, this study contributes to a deeper understanding of the contingencies that influence the effectiveness of traditional governance mechanisms in digitally enabled supply chain relationships.

Purpose Despite the initial efforts of companies to tackle Scope 3 emissions, how to effectively manage emissions that are shared across a diverse network of actors is still unclear. Building on Young’s (2006) social connectedness model of responsibility, our study’s objective is to analyse in which conditions boundary-spanning functions as a mechanism for constructing shared responsibility. Design/methodology/approach We used a longitudinal qualitative abductive research design based on content analysis of self-reported and tertiary data from 31 European manufacturing companies’ leaders in climate action to unravel Scope 3 emissions management practices adopted. Overall, we analysed 412 documents for 16,919 pages and two online databases. Findings Our findings demonstrate that boundary-spanning does not always function as a mechanism that leads to shared responsibility. Companies’ ability to utilise boundary-spanning to generate shared responsibility is influenced by structural conditions, particularly supply chain complexity, which can expand opportunities for collaboration. Originality/value The adoption of social connectedness in the context of sustainable supply chain management emphasises that not all Scope 3 emissions management practices are equally effective in promoting shared responsibility, and it is imperative to consider potential unintended consequences.

Purpose The supply chain management literature prominently debates whether firms should adopt a concentrated customer base strategy or aim for greater diversification. This study contributes to this onging debate by introducing a crucial yet often overlooked temporal dimension to the consequences for customer concentration based on the resource dependence theory. Design/methodology/approach We tested our theoretical framework using a panel dataset of China's listed companies from 2007 to 2023. We addressed the endogeneity concerns using a two-stage least squares (2SLS) model and performed numerous tests to ensure the robustness of the results. Findings The results indicate that high customer concentration compels suppliers to prioritize short-term objectives of major customers over their own long-term strategic directions, thereby undermining strategic persistence. Moreover, the impact is pronounced when industry competition is higher and the level of formal institutions in a region becomes more developed. Originality/value The findings advance our understanding of customer concentration's dynamic consequences, strategic persistence, and resource dependence theory, extending prior literature on the debates about whether firms should concentrate or diversify their customer base, and drawing important implications for practices.

Purpose Using a dynamic contingency theory perspective as the theoretical lens, the purpose of the study is to understand how sales and operations planning (S&OP) can be adapted to maintain a fit with internal and external context, thereby contributing to resilience and overall company performance. Design/methodology/approach The research is conducted as a single-case study of a leading manufacturing company in Denmark. Rich data spanning several years were gathered, enabling examination of process data to reveal causal relationships and temporal dynamics. Findings The main finding is that adaptive S&OP design is central to performance and resilience in dynamic business environments. Findings further indicate that an expansion of S&OP scope triggers a sequence of interdependent changes and that scope decisions need to be governed considering S&OP maturity and technological advancements, where advanced planning systems are seen to both enable and constrain scope expansions. The inclusion of new products in S&OP has been found to call for flexibility in several design parameters. Leadership plays a pivotal role in adapting the S&OP process to sustain planning performance. Originality/value The research provides new insights into how firms can dynamically adjust S&OP to maintain contextual fit, performance and resilience in operations. It promotes S&OP as an adaptive process and outlines a process framework building on standard S&OP. The study highlights S&OP scope as a critical design parameter, which has been previously overlooked or considered contextual.

Purpose Interlocking director networks facilitate the exchange of information and resource sharing among firms. As a result, firms within these networks often imitate and learn from each other’s behaviors, which can influence their decisions regarding supply chain disclosure. Therefore, guided by social network theory, this study investigates how interlocking director network characteristics – specifically centrality and structural holes – influence firms’ voluntary supply chain disclosure decisions. Design/methodology/approach Using data from A-share firms listed on China’s Shanghai and Shenzhen stock exchanges from 2013 to 2022, the relationship between interlocking director networks and both voluntary supplier and customer disclosure is empirically examined. A two-way fixed effects model incorporating negative binomial regression is employed. Findings The results suggest that firms with higher centrality and greater access to structural holes within interlocking director networks are more willing to voluntarily disclose supply chain information. Further analysis reveals that this positive effect is moderated by firm external environments, including industry competition and business environment. Originality/value This study enriches the literature on voluntary disclosure and provides a reference for managers to improve voluntary supply chain disclosure by exploiting interlocking director network.

Purpose This research aims to examine the role of established Corporate Lean Programmes (CLPs) in responding to extreme disruptions. While CLPs are often considered dynamic capabilities, their effectiveness during crises remains unclear. Given substantial investment in CLPs and increasing global uncertainty, evaluating their crisis management potential is crucial. Design/methodology/approach We build on a longitudinal non-participant field study conducted in five English hospitals, which implemented the Virginia Mason Production System, which is a CLP. This research was expanded in March 2020 to examine its application during the COVID-19 pandemic. We investigated how CLPs were utilised and adapted to manage the crisis. Data collection (May–December 2020) included 20 h of non-participant observation at leadership meetings, 39 semi-structured interviews, and extensive document review. Findings To respond to the crisis, activities related to strategy and long-term planning were paused, and the CLP was adapted in three main ways: increased daily management practices for coordination, communication and teamwork; flexible deployment of specialist knowledge resources and simplified CLP routines for widespread, structured problem-solving. We develop a process model of adapting a CLP to respond to a crisis. The increased use and visibility of these practices enhanced the CLP’s perceived legitimacy, overcoming initial resistance to adoption. Originality/value This study offered a unique opportunity to deepen our understanding of how a CLP responded to extreme disruption. It also provides evidence that, despite arguments that lean approaches are only effective in stable environments, they can be adapted to work effectively in dynamic ones. This offers significant insights into the CLP’s sustained utility during extreme disruption.

Purpose This article aims to investigate digital technologies’ potential to enable supplier diversity, equity and inclusion (SDEI) outcomes by improving procurement processes. Design/methodology/approach An in-depth qualitative case study approach was used to analyse a global energy organisation (Energy-Co) and two of its technology service providers (TSPs), which form two dyads embedded in one case. In total, 39 interviews were conducted, and internal secondary data were also examined. Line-by-line inductive coding was employed to extract 873 participant insights, leading to first-order codes and 6 second-order themes. Findings Artificial intelligence (AI) and big data analytics technologies improve SDEI outcomes by transforming procurement processes and organisational subsystems. We identified six digitally enabled process changes spanning diversity, equity and inclusion (DEI)–supplier prioritisation, identification, standardisation, onboarding and engagement, development and performance tracking. Using socio-technical systems (STS) theory, we also found that digitalisation functions as a system-level integrator, helping to resolve misalignments across technical, social and environmental subsystems and enabling more scalable, coherent and long-term SDEI procurement outcomes. Originality/value This paper theorises that digitalisation enables the systemic embedding of SDEI in procurement. It adopts a distinctive dyadic lens by foregrounding the role of TSPs as active co-creators of inclusive procurement infrastructures. The paper identifies six new digitally enabled procurement process improvements; also, by extending STS theory, it introduces subsystem boundary blurring to explain how digitalisation enables SDEI outcomes regarding both volume and value. By offering a systemic lens for exploring DEI transformations across procurement ecosystems, this paper lays the foundation for a research agenda at the intersection of digitalisation, STS theory and inclusive procurement.

Purpose This study aims to investigate how different sources of uncertainty hinder the measurement and reporting of greenhouse gas (GHG) emissions in the steel supply chain (SC). It also examines how information processing mechanisms can support SC planning and help organizations manage these uncertainties. Design/methodology/approach A qualitative approach is used, based on semi-structured interviews with 16 informants from 12 European companies operating at different positions in the steel SC, including raw material producers, manufacturers, logistics providers, wholesalers and service partners. Grounded in the organizational information processing theory, the study analyzes how uncertainty affects emissions-related information processing and planning decisions. Findings The study identifies six key sources of uncertainty that hinder emissions measurement and reporting in the steel SC. These uncertainties manifest differently across procurement, production, distribution and sales planning stages. The findings illustrate how organizations can respond through information processing mechanisms that support emissions-related planning tasks and help integrate decarbonization goals into SC decision-making. In this study, procurement planning emerged as a particularly critical stage, where targeted information processing mechanisms can help mitigate emissions-related uncertainties. Research limitations/implications This study contributes to research on sustainable SC management and SC planning by identifying key factors that generate emissions-related uncertainty and highlighting how information processing can support decarbonization efforts. Practical implications Organizations can benefit from understanding how uncertainties related to GHG emissions measurement and reporting emerge and intensify. The study suggests several information processing mechanisms that can help organizations mitigate these challenges through SC planning and inform policymaking for better carbon management. Originality/value This research contributes to the understanding of how different sources of uncertainty emerge and complicate GHG emissions measurement and reporting in the steel SC.