“Leveraging Human Capital for Enhancing Supply Chain Adaptability in Volatile and Dynamic Markets”

Abstract

Global supply chains have experienced severe disruptions in recent years, yet limited attention has been given to how internal organizational resources particularly human capital drive supply chain adaptability. Existing research has largely focused on resilience and sustainability, leaving a gap in understanding mechanisms through which human capital shapes adaptability, especially across its different dimensions and in emerging economy contexts. Grounded in Intellectual Capital-Based View (Martín-de Castro et al., 2019)and Dynamic Capabilities Theory (Teece, 2023), this study examines effect of human capital on supply chain adaptability. Data from 200 manufacturing firms in Pakistan were analyzed using Smart-Partial Least Squares structural equation modeling. The saturated model demonstrated strong fit. Results affirms that human capital significantly enhances all three dimensions of adaptability. Conceptually, this study advances understanding of intellectual capital and dynamic capabilities by positioning human capital as a key enabler of adaptive supply chain performance. Empirically, it offers evidence from an emerging economy context. Practically, findings encourage managers to leverage skills, reputation, and creativity within their workforce to embed adaptability in supply chain strategies.