Hedging the bet on digital transformation in strategic supply chain management: a theoretical integration and an empirical test
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 1 February 2023
Issue publication date: 29 June 2023
Abstract
Purpose
This study conceptualizes the digital transformation (DT) strategy in a supply chain context, identifies its drivers from intra- and inter-organizational perspectives and examines the effect of the DT strategy on the strategic agility and financial performance of Chinese manufacturing firms.
Design/methodology/approach
The authors constructed a theoretical model by synthesizing the diffusion of innovation and organizational information processing theory (OIPT) and provided a set of hypotheses. The authors empirically tested the arguments using partial least squares structural equation modeling using data from a sample of 200 manufacturing firms in China.
Findings
The findings indicate that while supply chain connectivity positively affects DT adoption and DT routinization, data analytics capability and organizational learning positively influence DT adoption but not DT routinization. The mediation analysis also shows that DT strategy has significant direct effects on financial performance and a stronger indirect influence on financial performance via improved strategic agility.
Research limitations/implications
This study responds to repeated calls for a new understanding of supply chain DT strategy. In addition, the study offers important contributions to the literature by identifying the potential discord between the existing DT strategy and the supply chain context and proposes a new framework that provides essential theoretical underpinnings.
Originality/value
This study enriches the literature by conceptualizing and validating the dimensions, driving factors and performance implications of DT strategy in strategic supply chain management.
Keywords
Acknowledgements
This study was supported by the Humanities and Social Sciences Foundation of the Ministry of Education of China (Grant No. 21YJC630076). This research was supported by Sookmyung Women's University Research Grants.
Citation
Fang, M., Liu, F., Xiao, S.(S). and Park, K. (2023), "Hedging the bet on digital transformation in strategic supply chain management: a theoretical integration and an empirical test", International Journal of Physical Distribution & Logistics Management, Vol. 53 No. 4, pp. 512-531. https://doi.org/10.1108/IJPDLM-12-2021-0545
Publisher
:Emerald Publishing Limited
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