Even though research has suggested that supply chain agility and supply chain adaptability are distinct capabilities, little is known about their performance effects and about the contextual conditions under which they are effective. Based on a sample of 143 German firms, we empirically investigate the effects of supply chain agility and supply chain adaptability on cost performance and operational performance using hierarchical regression analysis. We ground our investigation in the dynamic capabilities view and contingency theory. We find that supply chain agility and supply chain adaptability positively affect both cost performance and operational performance. We further find evidence for a mediating role of supply chain agility in the links between supply chain adaptability and performance. Product complexity positively moderates the links between supply chain adaptability and cost performance, and supply chain adaptability and operational performance. The results contribute to the literature by offering a more nuanced understanding of the performance implications of supply chain agility and supply chain adaptability, thereby addressing the crucial question of why their benefits may or may not materialise under varying levels of product complexity.

This paper investigates the fundamental building blocks of supply chain agility, which are conceptualised as supply- and demand-side competence. While the former refers to production and supply management related activities, the latter refers to distribution and demand management related activities. The model further assesses the influence of supply chain agility on operational performance, as well as its mediating role in the relationship between supply- and demand-side competence and performance. Within this framework, process compliance, i.e. how well supply chain management processes are internally executed by the firm's employees, is viewed as an enabler (moderator) on the relationship between supply chain competencies and supply chain agility. Theoretical substantiation is provided by the resource-based view of the firm augmented with the dynamic capabilities perspective. The model is tested with data from 121 supply chain management professionals. Implications for both academic theory development and supply chain and production management practice are provided.