The effect of supply chain digitalisation on a firm’s performance
Abstract
Purpose
Based on the resource-based view (RBV) theory, this study examines how supply chain digitalisation affects firms’ performance by enabling firms to build supply chain agility and innovation capability.
Design/methodology/approach
Drawing from the dataset of 271 firms in the United Arab Emirates (UAE), we used structural equation modelling to validate the models. Mediation and moderation analyses were performed to test the research hypotheses.
Findings
The results suggest a positive correlation between supply chain digitalisation and a company’s performance, fully mediated by both supply chain agility and innovation capability. The interplay between supply chain agility and innovation capability has the potential to result in unfavourable outcomes for a firm’s performance. These results provide valuable insights into supply chain management during digital transformation.
Originality/value
The study advances the extant research on the antecedents of a firm’s performance by incorporating supply chain digitalisation and mediating mechanisms of supply chain agility and innovation capability that serve as a conduit between supply chain digitalisation and a firm’s performance based on RBV.
Keywords
Acknowledgements
The authors would like to express sincere gratitude to the editor and reviewers for their invaluable comments and guidance, which greatly contributed to improving the quality of the paper. Additionally, the authors sincerely appreciate the survey participants whose invaluable input played a crucial role in the successful completion of our study.
Citation
Wang, M. and Prajogo, D. (2024), "The effect of supply chain digitalisation on a firm’s performance", Industrial Management & Data Systems, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IMDS-09-2023-0629
Publisher
:Emerald Publishing Limited
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