Linkage between digital supply chain, supply chain innovation and supply chain dynamic capabilities: an empirical study

Abstract

PurposeThere has been limited research that has explored the connection between digital supply chain (DSC) and SC innovation and SC dynamic capabilities. This paper aims to examine the mediating effect of SC innovation on the relationship between DSC and SC dynamic capabilities.Design/methodology/approachThe research model and hypotheses were tested, employing (Statistical Package of Social Sciences) SPSS 25.0 and (Analysis of Moment Structures) AMOS 24.0 on data drawn from the Chinese manufacturing enterprises.FindingsThe study reveals that DSC has a significant positive effect on SC innovation and SC dynamic capabilities. SC innovation also has a significant positive effect on SC dynamic capabilities. Besides, the authors' research illustrates that SC innovation partially mediates the relationship between DSC and SC dynamic capabilities.Research limitations/implicationsSince the results are derived from the data collected from China, it may not, therefore, be generalized to other settings. Moreover, future research could consider other contextual variables such as “environmental uncertainty” and “Government's Reward-Penalty Mechanism,” which may influence SC dynamic capabilities.Practical implicationsThe study provides practical insights for senior executives and managers in the manufacturing industry. Managers should emphasize the investment of advanced digital technologies and tools (DTTs) and improvement of SC visibility and collaboration. In the digital age, companies should pay attention to the introduction of advanced technologies, tools and processes and focus on cultivating an innovative spirit to promote SC dynamic capabilities, thereby enhancing competitive advantages.Originality/valueThe paper illustrates that DSC is of great significance to improving SC dynamic capabilities. This study reveals compelling insights for firms to enhance SC innovation and dynamic capabilities by using DSC as an enabler.

Does Digitalization Strategy Affect Corporate Rent-Seeking? Evidence from Chinese-Listed Firms

“…First, a DS enhances internal operational efficiency. Highly digitalized firms not only optimize supply chain management processes like inventory, procurement, and production scheduling through technological means such as big data analysis [47,48], they are also assisted with accurately identifying and satisfying customer needs and market preferences [14,49]. By refining support systems for decision-making and effectively allocating internal resources [50], a DS strengthens the company's ability to sustain itself, reducing its dependence on specific external resources-including those provided by governments-thereby diminishing incentives for and the necessity of rent-seeking.…”

“…A DS enhances information transparency within the firm, mitigating information asymmetry [51]. The incorporation of digital technologies, such as big data, enhances the visualization of business processes and the traceability of data [47]. Additionally, the adoption of blockchain and artificial intelligence technologies in accounting and audit management systems improves the quality and transparency of accounting information, thereby reducing information asymmetry [25,54].…”

Digital Supply Chain Management

“…A portion of the research is conducting the linkage between DSCM and competitive advantages of enterprises. Some research clarifies that DSCM can enhance the performance of enterprises, to some extent (Li et al, 2023;Zhao et al, 2023), providing valuable references for industry stakeholders.…”

“…In addition, traditional supply chain operations lack certain attributes required for the business needs of today, as well as of the future. The digital transformation of the supply chain is aimed at breaking down these barriers and thus turning the supply chain into a seamlessly integrated system for optimal operation (Li et al, 2023). The concept of DSCM has gained much attention from the industry and academia with the bloom of digital technologies, especially after putting forward the notion of Industry 4.0 and Made in China 2025 (Lasi et al, 2014;Li, 2018).…”