Building dynamic capabilities in supplier selection in industry 4.0 era: A literature review

Abstract

Firms are striving to improve their operational capacities and maintain competitive advantages in light of challenges presented by globalization, evolving consumer preferences, prolonged external disruptions, and advancements in industry 4.0. Given that their suppliers have an impact on their competitive advantages, firms must ensure that the selection process for suppliers includes dynamic capabilities such as sustainability, resilience, and digitalization. This is crucial for maintaining competitiveness and effectively managing external disruptions. The objective of this article was to provide an analysis of recent literature on supplier selection through a descriptive and thematic analysis. By examining dispersed literature, this study has developed a framework for supplier selection rooted in building dynamic capabilities of whole supply chain with three important dimensions—resilience, sustainability, and digitalization. Findings of the study will assist managers to improve their supply chain performances, particularly in their supplier selection and evaluation by highlighting the crucial role of dynamic capabilities.