THE ROLE OF DYNAMIC CAPABILITIES IN TRANSLATING MARKETING SUPPLY CHAIN ALIGNMENT INTO FIRM PERFORMANCE: MODERATING ROLES OF SUPPLY CHAIN RESILIENCE AND ENVIRONMENTAL UNCERTAINTY

Abstract

Firms face pressure to integrate strategic functions like marketing and supply chain management. However, limited empirical research examines how such alignment interacts with dynamic capabilities and resilience to influence performance, particularly under environmental uncertainty in emerging economies such as Pakistan. This study aims to investigate the integrated effects of Marketing–Supply Chain Management Alignment (MSCA), Dynamic Capabilities (DC), and Supply Chain Resilience (SCR) on Firm Performance (FP), with Environmental Uncertainty (EU) as a moderating variable. Grounded in the Dynamic Capabilities View, the research explores how MSCA enhances performance directly and indirectly through DC, and whether EU and SCR moderate the effect of DC on FP. The study intends to bridge theoretical and empirical gaps by developing a moderated mediation model, offering strategic insights into how firms can optimize internal resource configurations and adapt effectively to environmental volatility for sustainable competitive advantage. The study employs a quantitative, cross-sectional design using survey data collected from managerial respondents in Pakistan’s Fast-Moving Consumer Goods (FMCG) sector. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test direct, indirect, and moderating relationships among the constructs. Measurement reliability and validity were confirmed through Cronbach’s alpha, composite reliability, average variance extracted, and discriminant validity metrics, ensuring robust empirical analysis. Results reveal that MSCA significantly enhances firm performance both directly and indirectly via dynamic capabilities. Dynamic capabilities mediate the relationship between MSCA and performance, confirming their role as strategic enablers. However, environmental uncertainty negatively moderates the impact of dynamic capabilities on performance, suggesting that excessive turbulence can hinder adaptive effectiveness. The moderating role of supply chain resilience was found to be insignificant. These findings highlight the importance of aligning strategic functions and fostering adaptive capacity while also recognizing contextual constraints. The study offers critical implications for firms operating in uncertain environments, particularly in emerging markets, seeking to strengthen performance outcomes.