THE IMPACT OF DIGITAL TRANSFORMATION ON SUPPLY CHAIN PERFORMANCE & FINANCIAL PERFORMANCE: THE MEDIATING EFFECTS OF SUPPLY CHAIN RESILIENCE AND SUPPLY CHAIN ROBUSTNESS IN THE MANUFACTURING SECTOR

Abstract

Due to the adoption of many digital technologies, the international industrial supply chain undergoes digital transformation (DT). In complex and simple environments, it allows maintaining its high performance, increasing its agility. By extending the concept of the data network to the supply chain, this study seeks to fill this research vacuum by suggesting that the improved robustness and resilience of the supply chain is a manifestation of the DT effect. To determine the relationships and effects, a thorough survey was carried out and PLS-SEM analysis was carried out. The sample size for the current study comprised 257 respondents from manufacturing companies across China Mainland. The results revealed that DT (digital transformation) positively influenced the supply chain’s performance, whereas SCRE (supply chain resource efficiency) and SCRO (supply chain operational efficiency) were partial mediators. The results further revealed that DT had a positive and significant influence on SCRE (_.β = 0.579. , _.p < 0.001. ) and SCRO (_.β = 0.553. , _.p < 0.001. ). In addition, the results showed that SCRE (_.β = 0.295. , _.p < 0.001. ) and SCRO (_.β = 0.493. , _.p < 0.001. ) positively and significantly influenced the supply chain performance. Moreover, the results revealed that the mediation effect of SCRE and SCRO of the relationship between DT and supply chain performance was statistically significant. By offering a fresh theoretical conceptualization of the data network impact in the supply chain, this article helps to address and consider the problem of digital transformation of supply chains. The findings obtained allow supply chain managers to actively participate in the process of digitalization and adopt new technologies, as well as identify capabilities for building supply chain resilience to disruptions. The practical significance of the current research is reflected in the ability to find a strategic solution for employing digital tools to make supply chains productive and competitive.