Impacts of stakeholder influences and dynamic capabilities on the sustainability performance of supply chains: a system dynamics model

Dynamic capabilities (DCs) are crucial for companies to attain competitive advantage in dynamic business environments and supply chains, where environmental and social aspects are considered by sustainable supply chain management (SSCM). However, the effects of stakeholder influences on SSCM performance, which results from the interplay of DCs and SSCM practices, need to be analyzed. Therefore, a system dynamics (SD) model is proposed to include the influences of governmental, shareholder, and other external stakeholder pressure. The system behavior, i.e., the company’s SSCM performance, can thus be analyzed in face of varying time delays of stakeholder influences. Findings indicate that different intensities of stakeholder influences affect the development of SSCM practices and DCs of a focal company, and thus, overall SSCM performance. Consequently, intensities of stakeholder influences should be managed accordingly, while the impact of time delays has to be understood to control SSCM performance. The insights gained from the model support the decision- and policy-making, which can be considered from the perspective of the focal company, the regulatory authorities, the shareholders, and other external stakeholders that ultimately translate into customer pressure.