Supply Chain Quality Integration in Manufacturing Firms: Examining the Role of Intellectual Capital and Absorptive Capacity In a Developing Economy

Abstract

This paper explores thedirect relationship between intellectual capital andsupply chainquality integration (SCQI). Furthermore, the indirect effect ofintellectual capital through absorptive capacity is also explored. Based on theresource-based view, dynamic capabilities perspective and relational view, atheoreticalmodeldevelopedfromtheextantliteraturewasempiricallyvalidated through a cross-sectional survey of 101 manufacturing firms inUganda. The data were analysed by using correlations and regressions. Thefindings revealed that intellectual capital has a positive and significant effecton absorptive capacity €“absorptive capacity also positively and significantlyinfluences SCQI. Moreover, intellectual capital significantly influences SCQIbothdirectlyandindirectlythroughthepartialmediationofabsorptivecapacity. The fundamental novelty of this article is contribution to the limitedempirical studies on SCQI and its antecedents by incorporating the threecomponentsofintellectualcapitalbesidesunveilingempiricalevidenceconfirming the partial mediating role ofabsorptive capacity in the intellectualcapital-SCQI relationship in manufacturing firms in a developing countrycontext.Keywords: Supplychainqualityintegration,Intellectualcapital,Absorptivecapacity,Developing economy