Supply chain resilience and sustainability through dynamic capabilities in the context of the European Supply Chain Due Diligence Act

This research investigates how to simultaneously enable sustainability and resilience in supply chains (SCs) within the context of the European Supply Chain Due Diligence Act (ESCDDA). Using a multiple case study of nine cases with sustainability and SC managers from Austrian industrial companies, this study explores how dynamic capabilities (DCs) enable firms to navigate increasing regulatory and societal pressures while simultaneously enhancing SC resilience (SCRES). This study highlights the importance of strong organizational anchoring, top management commitment and regulatory compliance in driving sustainability efforts. Key enablers include legal requirements, employee engagement and collaboration with suppliers to build mutual trust and transparency. However, challenges remain, such as cost pressures, lack of customer willingness to pay, internal resistance and shortage of skilled employees. Additionally, companies struggle to align sustainability initiatives with resilience-building measures because short-term crisis management often takes precedence over long-term sustainability strategies. This study underscores the role of DC in reconciling these competing demands. By examining the interplay between sustainability and resilience, this study contributes to a deeper understanding of how industrial companies can develop SC strategies that align with both sustainability goals and the need for robustness against external disruptions.