Clarifying supply chain social capital and operational excellence relationship from a social capital and contingency perspectives: evidence from small and medium-sized enterprises

Purpose Supply chain social capital (SCSC) has become indispensable in supply chain management owing to its relevance in achieving competitive advantage. Despite the far-reaching attention that scholars and practitioners have paid to the concept, when and how SCSC can drive enhanced operational performance is less understood. Through the lens of social capital and contingency theories, we attempt to fill this gap by examining the extent to which (1) SCSC could drive operational performance (OP), (2) supply chain quality integration (SCQI) may mediate SCSC and OP and (3) the influence of SCSC on SCQI and OP may vary at different levels of absorptive capacity (AC) and institutional environment (IE). Design/methodology/approach This study tests the proposed model using survey data from 341 managers of manufacturing firms in Ghana. Structural equation modeling was employed to validate the model and test the hypotheses. Findings The findings reveal that SCSC significantly enhanced both OP and SCQI. They further showed that SCQI directly and partially mediates SCSC and OP. IE significantly moderated the SCSC-OP nexus. Similarly, AC moderated the SCSC-SCQI relationship. Practical implications This study offers valuable insights for managers and policymakers, suggesting that firms should simultaneously develop SCSC and quality integration strategies to achieve superior OP, while considering the institutional environment and developing absorptive capabilities. Originality/value This study is among the few attempts to unearth the mechanism (SC quality integration) and boundary conditions (absorptive capacity and institutional environment) through which resources embedded in supply chain networks can best be leveraged to drive operational excellence. Although several factors have been identified that influence the performance implications of social capital, the integration of quality within the supply, absorptive capacity and institutional environment is rare.