External barriers to lean supply chain practices impacting firm performance: sensing and responding capability moderation

Purpose This study examines the effects of external barriers to lean supply chain practices on firm performance, specifically analyzing the moderating roles of sensing and responding capabilities. Design/methodology/approach Grounded in the extended resource-based view (ERBV) and a dynamic capability theory (DCT), this study utilizes a quantitative, two-phase design. Survey data from 234 manufacturing firms in Vietnam are analyzed using exploratory and confirmatory factor analysis for model validation and structural equation modeling (SEM) for examining the effects of external lean supply chain barriers on firm performance and the moderating role of firm’s sensing and responding capabilities. Findings The findings reveal that key external barriers to lean supply chain practices, particularly those related to supply chain partnerships and information management, exert a significant negative impact on firm performance. Importantly, the results demonstrate that sensing and responding capabilities significantly alter the adverse effects of external barriers on firm performance. Originality/value This study bridges a critical gap in lean supply chain literature by integrating the ERBV with DCT to empirically demonstrate how firms leverage boundary-spanning capabilities to overcome external lean supply chain barriers. Notably, it offers a novel, capability-based framework and empirical evidence highly generalizable to manufacturing sectors in rapidly evolving emerging economies.