Modeling barriers to adoption of digitization in supply chains using FTOPSIS and its impact on sustainability TBL

Abstract

Purpose

This article aims at - exploring and prioritizing the barriers to adoption of digitization in supply chains (SCs), categorizing them into sustainability triple bottom line (STBL) based upon their direct impact and suggesting digital technologies to address each barrier.

Design/methodology/approach

A five-phase methodology is used which consists of an exploration of 44 barriers to the adoption of digitization in SCs, analysis of 44 barriers for mean, standard deviation and Cronbach alpha based on questionnaire-based feedback of 25 experts, extraction of 10 most significant barriers through 05 experts, followed by categorization of the barriers into STBL referring to their direct impact on STBL, prioritization of ten barriers using Fuzzy Technique for Order Performance by Similarity to Ideal Solution and recommendation of digital technologies to address each barrier.

Findings

While all the barriers considered in this study significantly impede the adoption of digitization in SCs, lack of top management commitment (B1) is found to be most crucial while lack of culture toward use of information and communication technology required for digitization (B3) has minimum impact. Large investment in digital infrastructure (B6), difficulty in integration of cyber physical systems (CPSs) on varied platforms (B8) and lack of experts having knowledge of digital technologies (B2) are equally important barriers requiring more attention while adopting digitization in SCs.

Research limitations/implications

This study is mainly based on feedback from 25 seasoned experts; a wider cross section of experts will give more insight.

Practical implications

The outcomes are very significant for organizations looking to adopt digitization in their SCs. Simultaneous consideration to all the barriers becomes impractical hence prioritization of same will be useful for the SC managers to benchmark their preparedness and decide strategies for the adoption of digitization with due consideration toward the impact of barriers on STBL. The digital technologies recommended will further aid in planning the digital strategies to address each barrier.

Originality/value

A unique approach to explore, analyze, prioritize and categorize the barriers to adoption of digitization in SCs is used to provide a deeper understanding of factors deterring the same. It implies that a supportive top management along with systematic allocation of finances plays a crucial role. The importance of availability of digital experts for integrating CPSs on a single platform is also highlighted. The digital technologies recommended will further assist the organizations toward adoption of digitization in SCs with due consideration to STBL.

Citation

Rane, S.B., Abhyankar, G.J., Kirkire, M.S. and Agrawal, R. (2023), "Modeling barriers to adoption of digitization in supply chains using FTOPSIS and its impact on sustainability TBL", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-04-2023-0234