How Do Dynamic Capabilities Impact the Performance of Fresh Agricultural Firms in Volatile Environments?

In the fresh agricultural sector of developing economies, effective supply chains - characterized by reliability, responsiveness, and flexibility - result in higher profitability, customer satisfaction, and competitive advantage. 

High macrouncertainty weakens this link, however, making it necessary for firms to quickly adjust in volatile environments.

These were the key findings of a 2025 study published in the International Journal of Information Systems and Supply Chain Management, a peer-reviewed academic journal published by IGI Global.

The researchers, including co-author Albert Tan of the Asian Institute of Management, looked at how the dynamic capabilities of Vietnamese firms impacted both supply chain uncertainty and the performance of the fresh agricultural supply chain.

Which Capabilities Were Considered?

Dynamic capabilities are defined as the ability to sense, seize, and reconfigure internal and external competencies to manage change and uncertainty. In the context of the fresh agri-supply chain (FASC) industry, these include operational capabilities that optimize logistics and storage, collaboration capabilities that promote coordination among supply chain partners, and learning capabilities that facilitate continuous adaptation and innovation.

Supply chain uncertainty includes demand fluctuation, supply disruption, and policy changes.

What the Study Found

Operational Capabilities

The researchers found that efficient operations – which encompass logistics, inventory management, and process optimization – play a central role in boosting supply chain performance in the fresh agricultural sector. In developing economies such as Vietnam’s, efficiency is crucial as the perishability of goods and infrastructural constraints need quick, coordinated action to avoid spillage and delays.

Collaborative Capabilities

Firms with strong collaborative mechanisms can better manage complexity and environmental volatility. In the sector, collaboration enables rapid coordination with upstream suppliers and downstream distributors. This is critical for navigating sudden demand shifts

and mitigating spoilage risks, especially in countries where seasonal variability and fragmented agricultural systems are prevalent, according to the study.