From absorptive capacity to competitive advantage: resilience, robustness, and finance in Egypt and Jordan

Purpose This study examines how absorptive capacity (AC), as a knowledge-based dynamic capability, contributes to sustainable competitive advantage (SCA) through two distinct supply chain risk management capability (SCRMC) pathways, namely resilience and robustness, while also assessing the moderating role of supply chain finance (SCF). Grounded in the Knowledge-Based View (KBV) and Dynamic Capability Theory (DCT), the study focuses on manufacturing firms operating in Egypt and Jordan under persistent volatility. Design/methodology/approach A quantitative research design was adopted using survey data collected from 895 manufacturing firms in Egypt and 614 in Jordan. Covariance-based structural equation modelling (CB-SEM) was used to test the hypothesised relationships, including mediation, moderated mediation, and cross-country comparison. Findings The results show that both resilience and robustness mediate the relationship between AC and SCA. However, SCF significantly strengthens the indirect AC–SCA relationship through robustness but not through resilience, suggesting that financial capability primarily reinforces proactive preparedness rather than reactive recovery. Multi-group analysis further indicates that the proposed relationships are supported in both countries, although their strength varies across the two contexts. Research limitations/implications The findings provide more specific guidance for firms and policymakers operating in volatile emerging-market contexts. Because supply chain finance significantly strengthens the absorptive capacity–competitive advantage pathway through robustness, firms should prioritise financing arrangements that support preparedness-oriented measures such as redundancy, supplier diversification, continuity buffers, and working-capital protection. The study is limited by its cross-sectional survey design, its reliance on perceptual measures, and its focus on manufacturing firms in Egypt and Jordan. Future research may strengthen causal interpretation by using longitudinal designs and objective disruption-performance indicators. Originality/value This study extends KBV and DCT by distinguishing resilience and robustness as two separate SCRMC pathways through which AC contributes to SCA, and by positioning SCF as a boundary condition that shapes this translation in volatile Arab emerging-market contexts.