IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v34y2025i7p8516-8553.html

Unlocking Sustainability: A Hierarchical Approach to Environmental Dynamic Capabilities in Supply Chain Transformation

Author

Listed:
  • Mariana Trujillo‐Gallego
  • William Ariel Sarache Castro
  • Miguel Sellitto

Abstract

This study addresses the challenges posed by globalization, sustainability, and rapid technological change, which increase the complexity and dynamism of the business environment. To tackle these challenges, companies must transition from traditional, static approaches to a more systemic, integrated, and dynamic perspective. Achieving sustainable supply chains requires integrating environmental innovations and dynamic capabilities within the green supply chain management (GSCM) framework. This research proposes and empirically validates a hierarchy of environmental dynamic capabilities based on the dynamic capability view (DCV) and GSCM approaches. Furthermore, it examines the contingency effects of firm size, age, and export orientation using contingent theory (CT). The theoretical model underwent testing through a survey involving 261 individuals in Colombia's manufacturing industry. The findings confirm the existence of a hierarchy of environmental dynamic capabilities, where high‐order capabilities influence the creation, transformation, and reconfiguration of lower order capabilities to address environmental protection and sustainability challenges. Additionally, only firm size was found to positively moderate the development of environmental dynamic capabilities. This study makes a significant contribution by being the first to propose and empirically validate a hierarchical model of environmental dynamic capabilities. The findings provide valuable insights for managers to refine sustainability strategies, improve forecasting, and manage risks. The study highlights the importance of synergy between higher order capabilities in achieving sustainability in supply chains rather than relying on independent efforts. The proposed hierarchy serves as a framework for policymakers to make informed decisions, focus critical investments, and promote interorganizational and interindustrial relationships for a smoother sustainable transition.

Suggested Citation

  • Mariana Trujillo‐Gallego & William Ariel Sarache Castro & Miguel Sellitto, 2025. "Unlocking Sustainability: A Hierarchical Approach to Environmental Dynamic Capabilities in Supply Chain Transformation," Business Strategy and the Environment, Wiley Blackwell, vol. 34(7), pages 8516-8553, November.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:7:p:8516-8553
    DOI: 10.1002/bse.70026
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.70026
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.70026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Beske, Philip & Land, Anna & Seuring, Stefan, 2014. "Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature," International Journal of Production Economics, Elsevier, vol. 152(C), pages 131-143.
    2. Siems, Erik & Land, Anna & Seuring, Stefan, 2021. "Dynamic capabilities in sustainable supply chain management: An inter-temporal comparison of the food and automotive industries," International Journal of Production Economics, Elsevier, vol. 236(C).
    3. Ahmed Hamdy, 2024. "Supply chain capabilities matter: digital transformation and green supply chain management in post-pandemic emerging economies: A case from Egypt," Operations Management Research, Springer, vol. 17(3), pages 963-981, September.
    4. Rosa Maria Dangelico & Devashish Pujari & Pierpaolo Pontrandolfo, 2017. "Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 490-506, May.
    5. Ratima Srisomwongse & Rawi Roongruangsee & Paul Patterson, 2025. "Capabilities influencing export intensity of Thai SMEs during COVID-19: a capability-based perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 31(3), pages 527-559, May.
    6. Qamar, A. & Gardner, E.C. & Buckley, T. & Zhao, K., 2021. "Home-owned versus foreign-owned firms in the UK automotive industry: Exploring the microfoundations of ambidextrous production and supply chain positioning," International Business Review, Elsevier, vol. 30(1).
    7. Md Imtiaz Mostafiz & Murali Sambasivan & See-Kwong Goh & Paiman Ahmad, 2023. "Configuring foreign market knowledge and opportunity recognition capabilities to predict the performance of export-manufacturing firms," Knowledge Management Research & Practice, Taylor & Francis Journals, vol. 21(2), pages 316-330, March.
    8. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    9. Nadeem Bari & Ranga Chimhundu & Ka-Ching Chan, 2022. "Dynamic Capabilities to Achieve Corporate Sustainability: A Roadmap to Sustained Competitive Advantage," Sustainability, MDPI, vol. 14(3), pages 1-27, January.
    10. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    11. Hua Shang & Renfei Chen & Zhongwen Li, 2020. "Dynamic sustainability capabilities and corporate sustainability performance: The mediating effect of resource management capabilities," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 595-612, July.
    12. Chaudhuri, Ranjan & Chatterjee, Sheshadri & Gupta, Shivam & Kamble, Sachin, 2023. "Green supply chain technology and organization performance: Moderating role of environmental dynamism and product-service innovation capability," Technovation, Elsevier, vol. 128(C).
    13. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    14. Dubey, Rameshwar & Bryde, David J. & Blome, Constantin & Dwivedi, Yogesh K. & Childe, Stephen J. & Foropon, Cyril, 2024. "Alliances and digital transformation are crucial for benefiting from dynamic supply chain capabilities during times of crisis: A multi-method study," International Journal of Production Economics, Elsevier, vol. 269(C).
    15. Manisha Tiwari & David J. Bryde & Foteini Stavropoulou & Gunjan Malhotra, 2024. "Understanding the evolution of flexible supply chain in the business-to-business sector: a resource-based theory perspective," International Studies of Management & Organization, Taylor & Francis Journals, vol. 54(4), pages 380-406, October.
    16. Rigdon, Edward E., 2016. "Choosing PLS path modeling as analytical method in European management research: A realist perspective," European Management Journal, Elsevier, vol. 34(6), pages 598-605.
    17. Teece, David J., 2016. "Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm," European Economic Review, Elsevier, vol. 86(C), pages 202-216.
    18. Johan Rauer & Lutz Kaufmann, 2015. "Mitigating External Barriers to Implementing Green Supply Chain Management: A Grounded Theory Investigation of Green-Tech Companies' Rare Earth Metals Supply Chains," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(2), pages 65-88, April.
    19. Szymon Cyfert & Anna Chwiłkowska-Kubala & Witold Szumowski & Radosław Miśkiewicz, 2021. "The process of developing dynamic capabilities: The conceptualization attempt and the results of empirical studies," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-24, April.
    20. Tobias Rebs & Daniel Thiel & Brandenburg Marcus & Stefan Seuring, 2019. "Impacts of stakeholder influences and dynamic capabilities on the sustainability performance of supply chains: A system dynamics model," Post-Print hal-02157940, HAL.
    21. Tobias Rebs & Daniel Thiel & Marcus Brandenburg & Stefan Seuring, 2019. "Impacts of stakeholder influences and dynamic capabilities on the sustainability performance of supply chains: a system dynamics model," Journal of Business Economics, Springer, vol. 89(7), pages 893-926, September.
    22. Emma Brandon-Jones & Brian Squire & Chad W. Autry & Kenneth J. Petersen, 2014. "A Contingent Resource-Based Perspective of Supply Chain Resilience and Robustness," Journal of Supply Chain Management, Institute for Supply Management, vol. 50(3), pages 55-73, July.
    23. Amer Saeed & Yun Jun & Saviour Ayertey Nubuor & Hewawasam Puwakpitiyage Rasika Priyankara & Mahabaduge Prasad Fernando Jayasuriya, 2018. "Institutional Pressures, Green Supply Chain Management Practices on Environmental and Economic Performance: A Two Theory View," Sustainability, MDPI, vol. 10(5), pages 1-24, May.
    24. K. T. Shibin & Rameshwar Dubey & Angappa Gunasekaran & Benjamin Hazen & David Roubaud & Shivam Gupta & Cyril Foropon, 2020. "Examining sustainable supply chain management of SMEs using resource based view and institutional theory," Annals of Operations Research, Springer, vol. 290(1), pages 301-326, July.
    25. Brock, David M. & Hitt, Michael A., 2024. "Making sense of dynamic capabilities in international firms: Review, analysis, integration, and extension," International Business Review, Elsevier, vol. 33(3).
    26. Ya Cheng & Mohammad Masukujjaman & Farid Ahammad Sobhani & Muhammad Hamayun & Syed Shah Alam, 2023. "Green Logistics, Green Human Capital, and Circular Economy: The Mediating Role of Sustainable Production," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    27. David J. Collis, 1994. "Research Note: How Valuable are Organizational Capabilities?," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 143-152, December.
    28. Giacomo Buzzao & Francesco Rizzi, 2021. "On the conceptualization and measurement of dynamic capabilities for sustainability: Building theory through a systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 135-175, January.
    29. Feng, Yunting & Lai, Kee-hung & Zhu, Qinghua, 2022. "Green supply chain innovation: Emergence, adoption, and challenges," International Journal of Production Economics, Elsevier, vol. 248(C).
    30. Zhang, Jingwen & Chen, Yantai & Li, Qianqiang & Li, Yawei, 2023. "A review of dynamic capabilities evolution—based on organisational routines, entrepreneurship and improvisational capabilities perspectives," Journal of Business Research, Elsevier, vol. 168(C).
    31. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    32. Huang, Kerry & Wang, Kedi & Lee, Peter K.C. & Yeung, Andy C.L., 2023. "The impact of industry 4.0 on supply chain capability and supply chain resilience: A dynamic resource-based view," International Journal of Production Economics, Elsevier, vol. 262(C).
    33. Jamshed Raza & Yuxin Liu & Jianwei Zhang & Nan Zhu & Zohaib Hassan & Habib Gul & Sikander Hussain, 2021. "Sustainable Supply Management Practices and Sustainability Performance: The Dynamic Capability Perspective," SAGE Open, , vol. 11(1), pages 21582440211, March.
    34. T. C. Edwin Cheng & Sachin S. Kamble & Amine Belhadi & Nelson Oly Ndubisi & Kee-hung Lai & Manoj Govind Kharat, 2022. "Linkages between big data analytics, circular economy, sustainable supply chain flexibility, and sustainable performance in manufacturing firms," International Journal of Production Research, Taylor & Francis Journals, vol. 60(22), pages 6908-6922, November.
    35. Shmueli, Galit & Ray, Soumya & Velasquez Estrada, Juan Manuel & Chatla, Suneel Babu, 2016. "The elephant in the room: Predictive performance of PLS models," Journal of Business Research, Elsevier, vol. 69(10), pages 4552-4564.
    36. Jose Benitez-Amado & Rita M Walczuch, 2012. "Information technology, the organizational capability of proactive corporate environmental strategy and firm performance: a resource-based analysis," European Journal of Information Systems, Taylor & Francis Journals, vol. 21(6), pages 664-679, November.
    37. Shyamkumar D. Kalpande & Lalit K. Toke, 2020. "Assessment of green supply chain management practices, performance, pressure and barriers amongst Indian manufacturer to achieve sustainable development," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 70(8), pages 2237-2257, August.
    38. Saswati Tripathi & Siddhartha Shankar Roy & Bijoy Talukder, 2024. "The effect of firm-specific determinants on export performance: the mediating role of supply chain performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 74(4), pages 1297-1325, September.
    39. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trujillo-Gallego, Mariana & Sarache, William & Sousa Jabbour, Ana Beatriz Lopes de, 2022. "Digital technologies and green human resource management: Capabilities for GSCM adoption and enhanced performance," International Journal of Production Economics, Elsevier, vol. 249(C).
    2. Tobias Knabke & Sebastian Olbrich, 2018. "Building novel capabilities to enable business intelligence agility: results from a quantitative study," Information Systems and e-Business Management, Springer, vol. 16(3), pages 493-546, August.
    3. Joan Torrent‐Sellens & Mihaela Enache‐Zegheru & Pilar Ficapal‐Cusí, 2025. "Promoting the European Sustainable Firm: How Economic, Social, and Green Innovation and the AI‐Based Technologies Create Pathways of Social and Environmental Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 34(7), pages 9093-9119, November.
    4. Miikka Blomster & Timo Koivumäki, 2022. "Exploring the resources, competencies, and capabilities needed for successful machine learning projects in digital marketing," Information Systems and e-Business Management, Springer, vol. 20(1), pages 123-169, March.
    5. Schriber, Svante & Löwstedt, Jan, 2020. "Reconsidering ordinary and dynamic capabilities in strategic change," European Management Journal, Elsevier, vol. 38(3), pages 377-387.
    6. Nycil George & Anita Kerai, 2024. "Ordinary capabilities and firm performance: The role of capital market development," Asia Pacific Journal of Management, Springer, vol. 41(1), pages 233-274, March.
    7. Bag, Surajit & Gupta, Shivam & Chan, Hau-Ling & Kumar, Ajay, 2024. "Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    8. Magoti Daniel Harun & Heidi Hogset & Deodat Mwesiumo, 2023. "Dynamic capabilities and sustainability performance: Exploring the moderating role of environmental dynamism in the Norwegian fishing industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2636-2655, August.
    9. Wittenstein, Daniel, 2020. "Champions of digital transformation? The dynamic capabilities of hidden champions," ZEW Discussion Papers 20-065, ZEW - Leibniz Centre for European Economic Research.
    10. André de Abreu Saraiva Monteiro Alves & Fernando Manuel Pereira de Oliveira Carvalho, 2022. "How Dynamic Managerial Capabilities, Entrepreneurial Orientation, and Operational Capabilities Impact Microenterprises’ Global Performance," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    11. Jasna Prester, 2023. "Operating and Dynamic Capabilities and Their Impact on Operating and Business Performance," Sustainability, MDPI, vol. 15(20), pages 1-24, October.
    12. Bitencourt, Claudia Cristina & de Oliveira Santini, Fernando & Ladeira, Wagner Junior & Santos, Ana Clarissa & Teixeira, Eduardo Kunzel, 2020. "The extended dynamic capabilities model: A meta-analysis," European Management Journal, Elsevier, vol. 38(1), pages 108-120.
    13. Scheuer, Luca Joachim & Thaler, Julia, 2023. "How do dynamic capabilities affect performance? A systematic review of mediators," European Management Journal, Elsevier, vol. 41(6), pages 914-931.
    14. Andreas P. Distel & Wolfgang Sofka & Pedro de Faria & Miguel Torres Preto & António Sérgio Ribeiro, 2022. "Dynamic capabilities for hire – How former host-country entrepreneurs as MNC subsidiary managers affect performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 657-688, June.
    15. Jafari, Hamid & Eslami, Mohammad H. & Paulraj, Antony, 2022. "Postponement and logistics flexibility in retailing: The moderating role of logistics integration and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 243(C).
    16. D'Souza, Derrick E. & Fan, Gang, 2022. "A capability-anchored articulation of the EO-organizational performance relationship in emergent and post-emergent organizations," Journal of Business Research, Elsevier, vol. 146(C), pages 107-117.
    17. Wamba, Samuel Fosso & Dubey, Rameshwar & Gunasekaran, Angappa & Akter, Shahriar, 2020. "The performance effects of big data analytics and supply chain ambidexterity: The moderating effect of environmental dynamism," International Journal of Production Economics, Elsevier, vol. 222(C).
    18. Cleverton Rodrigues Fernandes & André Gustavo Carvalho Machado, 2019. "Technology Transfer Capability: development dynamics in higher education institutions," Brazilian Business Review, Fucape Business School, vol. 16(1), pages 1-15, January.
    19. Victoria Eugenia Sanchez-Garcia & Cristina Gallego & Juan Antonio Marquez & Elena Peribáñez, 2024. "The Green Entrepreneurial Self-Efficacy as an Innovation Factor That Enables the Creation of New Sustainable Business," Sustainability, MDPI, vol. 16(16), pages 1-14, August.
    20. Desirée Knoppen & Louise Knight, 2022. "Pursuing sustainability advantage: The dynamic capabilities of born sustainable firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1789-1813, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:34:y:2025:i:7:p:8516-8553. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.