Purpose: To better understanding about internal service quality, to find out the role of supply chain competitive agility in the relationship between firm’s dynamic capabilities in supplier management and purchasing’s internal service quality; also the effect of competitive intensity in the correlation among firm’s dynamic capabilities in supplier management and supply chain competitive agility.
Design/methodology/approach: This research is conceptual in nature and grounded in internal service quality, supply chain competitive agility, dynamic capabilities theory. Relevant literature reviews from internal service quality, firm’s dynamic capabilities in supplier management, supply chain competitive agility are considered. Questionnaire is delivered, CFA and multiple hierarchical analyses are using for testing hypotheses.
Findings: Purchasing’s internal service quality is strongly positively influenced by supply chain competitive agility, while firm’s dynamic capabilities in supplier management is not significant. Supply chain competitive agility play a mediating role in the relationship between firm’s dynamic capabilities in supplier management and purchasing’s internal service quality. In addition, firm’s dynamic capabilities in supplier management influents to supply chain competitive agility with or without the moderator effect of competitive intensity.
Research limitations/implications: Supply chain competitive agility and firm’s dynamic capabilities can not represent for all elements that affect purchasing’s internal service quality. Moreover, conclusion from this study may be different in other countries.
Practical implications: Investment in dynamic capabilities and implementation supply chain competitive agility practices will improve the quality of internal working in the firm.
Originality/value/contribution: This study is first explicit framework linking supply chain competitive agility, firm’s dynamic capabilities in supplier management, internal service quality and competitive intensity. Contribution is the link between supply chain competitive agility to purchasing’s internal service quality, the mediating role of supply chain competitive agility.

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