Recursive Effects to Study Feature-Based Capabilities in Supply Chain Management

This paper explores the benefits that firms obtain when investing in feature-based capabilities. We investigate the external pressures when deciding their feature-based strategy. In addition, we analyze the consumers’ customization options and the needs for facilitators to mitigate the negative effects of excessive features. We assess the influence of feature-based capabilities on performance and search for an economically feasible loop that feature-based capabilities might entail. This latter is carried out by investigating the recursive effects in structural equation modeling. Our findings reveal that feature-based capabilities entail an economically feasible loop through competitors and supply chain partners but not also through facilitators and operational performance.