Buffering strategy generally aligns itself towards the duplication and accumulation of critical resources and capacities prior to the event of a disruption and thus functions as a shock absorber. Synthesis of the literature reveals that one of the most commonly used theoretical perspectives employed in explaining the relationship between this construct and supply chain resilience and supply chain risk management is resource dependence theory. The resource dependence theory basically looks at how the external resources of organizations affect the behavior of the organization. Suggesting that as a focal organization depends solely on a particular actor within its value chain for its critical resources, too much of this dependence creates uncertainty and vulnerability, and the risk of external checks being imposed on the organisation. For instance, unequal exchanges of these resources can generate differences in power, authority, and further access to resources.

To this end, it has been argued that to attain critical resources within a firms external environment without the problem of power and authority imbalance, organizations can do so by relying on multiple suppliers or providers.

While the resource dependence theory may explain the buffering strategy and supply chain resilience relationship, it is worth noting that the reliance on multiple streams of suppliers as postulated by the theory may add significant cost to the already expensive nature of resilience building. Accordingly, an alternate theoretical lens through which the said relationship can be explained resides in the domains of the dynamic capabilities theory.

While the capacity of an organization to anticipate and prepare for all foreseeable dangers is unattainable, and is often uneconomical, it behoves on an organization to deliberately construct, extend, and/or reconfigure its resources in order to elucidate how commercial enterprises can respond to changing and unpredictable environments. As a result, the mere accumulation and duplication of critical resources and procedures may not sufficiently contribute to greater levels of resilience. To this end, these accumulated resources and procedures must be flexible enough to match the unpredictable nature of the ecosystem within which they operate.

Question: As a scholar with appreciable level of knowledge and experience in the field of research, does the alternate theory (dynamic capabilities theory) better explain the relationship between buffering strategy and supply chain resilience? If not why?

Thank you.