R.N.K. Soysa, Asankha Pallegedara, A.S. Kumara, D.M. Jayasena and M.K.S.M. Samaranayake
Although publicly listed firms in Sri Lanka have been increasingly adapting sustainability reporting into their annual reporting practices, a limited number of firms prepare…
Abstract
Purpose
Although publicly listed firms in Sri Lanka have been increasingly adapting sustainability reporting into their annual reporting practices, a limited number of firms prepare sustainability reports by integrating sustainable development goals (SDGs) into reporting mechanisms. This study attempts to develop an index to monitor firms' sustainability reporting practices based on Global Reporting Institute (GRI) guidelines integrating SDGs.
Design/methodology/approach
This paper develops a sustainability score index using the 17 SDGs utilising the results of content analysis of corporate annual reports of a selected sample of 100 firms listed on the Colombo Stock Exchange (CSE). Principal component analysis was employed to examine the reliability of data in the developed index.
Findings
Findings show that the developed scoring index is efficient for evaluating the contents of the sustainability reports of Sri Lankan firms. Sustainability reporting practises with regard to the SDGs were observed to have a turbulent period from 2015 to 2019 and the SDGs 12 and 15 were identified to be mostly reported in Sri Lankan corporate sustainability reports.
Research limitations/implications
The results of the study add to knowledge on the monitoring of sustainability reporting practises with reference to SDGs. The study outcomes are useful for the investors, stakeholders, and statutory bodies to measure the sustainable performance of business firms and assess the firm’s commitment towards the global sustainability agenda.
Originality/value
To the best of our knowledge, this is the first study that constructs a sustainability reporting score index integrating SDGs.
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Premaratne Samaranayake, Krishnamurthy Ramanathan and Weerabahu Mudiyanselage Samanthi Kumari Weerabahu
The main purpose of this research is to (1) prioritise key determinants of Industry 4.0 (I4.0) readiness assessment and (2) evaluate causal relationships among those determinants…
Abstract
Purpose
The main purpose of this research is to (1) prioritise key determinants of Industry 4.0 (I4.0) readiness assessment and (2) evaluate causal relationships among those determinants and associated sub-criteria based on inputs from industry experts.
Design/methodology/approach
The methodology involved two phases: (1) an MCDM approach for determining causal relationships among determinants and (2) empirical validation of findings from the first phase using industry experts' inputs.
Findings
It was found that while the choice of I4.0 technologies is important, organisational factors are also critical, as evidenced by the ranking of the “Strategy and Organisation” determinant as the highest rank prominent determinant. Also, the ranking of the sub-criteria within each determinant shows the importance of several organisational influencing and resulting sub-criteria.
Research limitations/implications
This research extends the existing literature on I4.0 by demonstrating the prioritisation of determinants and delineating causal relationships among them and associated sub-criteria as a basis for developing I4.0 adoption guidelines. This research is limited to the specific scope of determinants selected/considered and experts' inputs from the Sri Lankan manufacturing sector. Future studies could consider extending this research into a broader global manufacturing context.
Practical implications
Prioritisation and causal relationships of I4.0 readiness assessment determinants, supported with inputs from functional managers and industry experts, could be used to guide practitioners in developing guidelines for I4.0 adoption in a phased manner.
Originality/value
This research provides a re-evaluation and validation of a selected I4.0 readiness assessment framework from the perspectives of interdependencies and casual relationships among its determinants and sub-criteria, based on inputs from industry experts as a basis for developing guidelines for I4.0 adoption.
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W.M. Samanthi Kumari Weerabahu, Premaratne Samaranayake, Dilupa Nakandala and Hilal Hurriyet
This study investigates the enablers and challenges of digital supply chains (DSCs) adoption and develops a digital supply chain maturity (DSCM) model as a basis for developing…
Abstract
Purpose
This study investigates the enablers and challenges of digital supply chains (DSCs) adoption and develops a digital supply chain maturity (DSCM) model as a basis for developing guidelines for DSC adoption in the digital transformation journey.
Design/methodology/approach
The research involves a systematic literature review (SLR) of Industry 4.0 (I4) adoption in supply chain (SC) practices to identify key enablers and associated maturity levels. The literature search of published articles during the 1997–2020 period and subsequent screening resulted in 64 articles. A DSCM model was developed using the categorization of important enablers and associated levels transitioning from the traditional SC to the DSC ecosystem.
Findings
Four broader categories of DSC enablers and challenges were identified from the content analysis of SLR. Digital strategy alongside I4 technologies and human capital were prominent in DSC adoption as I4 technologies and human capital depend on other enablers such as dynamic capabilities (DCs). Lack of infrastructure and financial constraints to implementing I4 were significant challenges in the DSC adoption.
Research limitations/implications
The proposed DSCM model provides a holistic view of enablers and maturity levels from traditional SC to DSC adoption. However, the DSCM model needs to be empirically validated and streamlined further using inputs from practitioners.
Practical implications
The proposed DSCM model can be used as a framework to guide practitioners in assessing maturity and developing implementation plans for successful DSC adoption.
Originality/value
This research introduces a novel DSC maturity model through a holistic view of enablers and maturity levels from traditional SC to DSC adoption.
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A. Madini Lakna De Alwis, Nayanthara De Silva and Premaratne Samaranayake
This paper proposes strategies for adopting Industry 4.0 in achieving sustainable manufacturing, by overcoming barriers in the Sri Lankan manufacturing sector.
Abstract
Purpose
This paper proposes strategies for adopting Industry 4.0 in achieving sustainable manufacturing, by overcoming barriers in the Sri Lankan manufacturing sector.
Design/methodology/approach
A conceptual model of sustainable manufacturing and Industry 4.0 was proposed based on a comprehensive literature review and validated through experts' inputs. The model was illustrated using three case studies to assess the relationships between sustainable manufacturing and Industry 4.0 in the Sri Lankan manufacturing context. Furthermore, possible strategies were proposed to overcome current barriers identified from case studies.
Findings
The case studies showcase that there is a considerable gap in Industry 4.0-enabled sustainable manufacturing in the Sri Lankan manufacturing sector due to several barriers. Thus, experts' knowledge-based strategies to overcome those barriers are proposed.
Research limitations/implications
The conceptual model provides a holistic view of maturity levels of sustainable manufacturing measures directly connected with Industry 4.0 technologies. The study was limited to investigating the application of Industry 4.0 for sustainable manufacturing in leading apparel manufacturing organisations in Sri Lanka.
Practical implications
The conceptual model can be used as a framework to guide practitioners in implementing Industry 4.0-enabled sustainable manufacturing. The proposed strategies in addressing barriers to Industry 4.0 adoption towards sustainable manufacturing can be directly applied to achieving better sustainable manufacturing performance.
Originality/value
This study is an informative guide to encourage the Sri Lankan manufacturing industry to adopt Industry 4.0 technologies in achieving sustainable manufacturing, using the knowledge of relationships between Industry 4.0 and three dimensions of sustainable manufacturing, possible barriers and strategies.
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Gharib Hashem and Mohamed Aboelmaged
The rapid global changes we are witnessing pose a pressing challenge that necessitates reevaluating conventional supply chain practices. Consequently, the integration of digital…
Abstract
Purpose
The rapid global changes we are witnessing pose a pressing challenge that necessitates reevaluating conventional supply chain practices. Consequently, the integration of digital technologies into supply chain operations, often referred to as digital supply chain (DSC), has emerged as a strategic shift that aims to empower organizations to proactively seize new opportunities rather than being caught off guard by unforeseen disruptions arising from economic volatility, global pandemics and regional conflicts. Thus, this study embraces a knowledge-centric approach to explore the direct and indirect impact of knowledge management, innovation and learning capabilities on DSC adoption in an emerging economy context. Furthermore, it aims to shed light on the moderating role of environmental dynamism in this intricate interplay.
Design/methodology/approach
Employing a cross-sectional survey, the research data were collected from 354 managers representing Egyptian manufacturing and service firms utilizing a structured questionnaire. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM).
Findings
The results unveiled that knowledge management capability (KMC) has the highest path coefficient value among all endogenous variables. It accounts for a significant portion of the variance in innovation and learning capabilities, which play pivotal roles in adopting DSC. Notably, learning capability appears to exert a more powerful influence on DSC adoption than innovation capability through direct and mediating effects. Furthermore, the findings underscore the moderating effect of environmental dynamism on the relationship between learning capability and DSC adoption. However, this moderating role is not observed in the link between innovation capability and DSC adoption.
Practical implications
There is a growing trend among firms to adopt DSC in response to significant environmental shifts. This study offers valuable insights for managers and policymakers, providing them with a deeper understanding of the DSC adoption process. The study’s findings assist in identifying crucial factors that boost DSC adoption and offer guidance on successfully leveraging digital technologies for managing supply chain practices. Moreover, the study offers stimulating directions for future DSC research directions.
Originality/value
The study contributes to the existing literature by expanding our understanding of the adoption of DSC by utilizing knowledge, innovation and learning capabilities within the context of emerging economies.
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Astha Sharma, Dinesh Kumar and Navneet Arora
The purpose of the present work is to improve the industry performance by identifying and quantifying the risks faced by the Indian pharmaceutical industry (IPI). The risk values…
Abstract
Purpose
The purpose of the present work is to improve the industry performance by identifying and quantifying the risks faced by the Indian pharmaceutical industry (IPI). The risk values for the prominent risks and overall industry are determined based on the four risk parameters, which would help determine the most contributive risks for mitigation.
Design/methodology/approach
An extensive literature survey was done to identify the risks, which were also validated by industry experts. The finalized risks were then evaluated using the fuzzy synthetic evaluation (FSE) method, which is the most suitable approach for the risk assessment with parameters having a set of different risk levels.
Findings
The three most contributive sub-risks are counterfeit drugs, demand fluctuations and loss of customers due to partners' poor service performance, while the main risks obtained are demand, financial and logistics. Also, the overall risk value indicates that the industry faces medium to high risk.
Practical implications
The study identifies the critical risks which need to be mitigated for an efficient industry. The industry is most vulnerable to the demand risk category. Therefore, the managers should minimize this risk by mitigating its sub-risks, like demand fluctuations, bullwhip effect, etc. Another critical sub-risk, the counterfeit risk, should be managed by adopting advanced technologies like blockchain, artificial intelligence, etc.
Originality/value
There is insufficient literature focusing on risk quantification. Therefore, this work addresses this gap and obtains the industry's most critical risks. It also discusses suitable mitigation strategies for better industry performance.
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Ana Krstić, Dragana Rejman-Petrović, Ivana Nedeljković and Predrag Mimović
The purpose of this paper is an analysis of the process of digital transformation of enterprises, by measuring the efficiency of the use of information and communication…
Abstract
Purpose
The purpose of this paper is an analysis of the process of digital transformation of enterprises, by measuring the efficiency of the use of information and communication technologies (ICTs) in business in 29 European countries in the period from 2012 to 2020.
Design/methodology/approach
A Charnes, Cooper and Rhodes data envelopment analysis (CCR DEA, 1978) window model has been developed to measure the ICT efficiency of European countries. Several indicators of the use of information and communication technologies in enterprises are selected as the variables of the proposed models, which are available as such in the Eurostat database for European countries. Due to the sensitivity of the results obtained by applying the DEA method to measurement errors and output values, the robustness analysis of the obtained values of average efficiency is also performed, using the bootstrap method.
Findings
The obtained results show that the highest average technical efficiency of the use of ICT in companies by windows, in the observed period, is recorded in Belgium, while Denmark is in the second place. Bulgaria, Romania, Greece and Latvia have the lowest average technical ICT efficiency per window. The analysis of the obtained results by years in the same period brings identical conclusions. Only Belgium has been ICT efficient many times. In general, for all observed countries, the movement of average ICT efficiency in the observed period shows a slightly growing trend, with the exception of a significantly decline in 2013. However, the fact is that the ICT efficiency of the observed countries in the past period is relatively low and for all countries it is 46.36%, with no country being 100% efficient and with eight countries whose average efficiency is below 50% of best practice.
Research limitations/implications
To measure and evaluate the efficiency of ICT use in enterprises, four variables for efficiency assessment are identified, given the fact that only these data are available continuously for the observed period from 2012 to 2020 in the Eurostat database.
Practical implications
Low efficiency of using digital potential in business of the observed countries indicates the need for better understanding of the nature and goals of the digital business transformation process by employees and management, to create conditions for effective implementation and optimization of business digitalization.
Originality/value
Measurement of digital transformation is the subject of a very small number of studies and research, which mainly focus on measuring and assessing the impact of digital transformation on individual countries and perform a comparative analysis of technological development in those countries. Also, analyses are mainly based on identifying similarities and differences between countries or ranking countries according to adopted evaluation criteria using different digitization indices. A step forward in this research is the application of the DEA window method for measuring the relative efficiency of the use of ICT in enterprises, and the development of a model that can be extended if necessary with indicators for which data are available.
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Shikha Kalesh, Nadine Kiratli-Schneider and Holger Schiele
This paper aims to explore factors influencing suppliers' acceptance, integration challenges, expected benefits and support from customers when implementing a customer-introduced…
Abstract
Purpose
This paper aims to explore factors influencing suppliers' acceptance, integration challenges, expected benefits and support from customers when implementing a customer-introduced digital supply chain system.
Design/methodology/approach
The study investigates the perspective of suppliers using a mixed methodology approach that combines qualitative interviews with a large-scale quantitative survey conducted among 220 internationally located suppliers of an automotive-industrial firm.
Findings
As a result, the authors identified 11 factors that drive suppliers' acceptance of customer-introduced digital supply chain systems. These factors have been ranked based on their importance. The top three important factors identified were the digital system being provided at no cost to the suppliers, the system's ability to save time and the system offering benefits to the suppliers.
Research limitations/implications
Further research can be conducted to validate the perspective of suppliers in other industries. Additionally, future studies can investigate the effectiveness of fulfilling these acceptance factors within an actual digital integration setup.
Practical implications
Companies can leverage these insights to accelerate their digital supply chain integration efforts. The insights on acceptance factors, challenges, benefits and support expected by suppliers can serve as a valuable guide for policy and decision makers within the industry.
Originality/value
To the best of the authors’ knowledge, this study is among the first to investigate the perspective of suppliers in the integration of a customer's digital supply chain. By including the supplier's perspective, this study makes a significant contribution to the academic literature about supply chain digitalisation.
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Gharib Hashem, Mohamed Aboelmaged and Ifzal Ahmad
This paper has predicted digital supply chain (DSC) adoption through the role of firms' proactiveness, knowledge management capability (KMC), innovation ambidexterity and the…
Abstract
Purpose
This paper has predicted digital supply chain (DSC) adoption through the role of firms' proactiveness, knowledge management capability (KMC), innovation ambidexterity and the moderating effect of environmental dynamism.
Design/methodology/approach
Survey data from 354 managers in manufacturing and service firms were analysed using the PLS-SEM model.
Findings
The present study's findings ascertained the significant role of innovation ambidexterity in influencing DSC adoption, given that innovation exploration's direct and mediating impacts were greater than innovation exploitation's. Firms' proactiveness had the highest path coefficient value among the endogenous variables as an indispensable source for firms to successfully embrace KMC and innovation ambidexterity. The role of firm size on DSC adoption was also significant, revealing that SMEs were more likely than larger firms to adopt DSC practices. Despite its significant effect on innovation ambidexterity, KMC surprisingly exhibited no direct influence on DSC adoption. Furthermore, the findings demonstrated the significant moderating role of environmental dynamism on the effect of KMC on innovation exploration.
Research limitations/implications
This research endeavour has presented valuable insights for scholars and managers, furnishing them with a framework to facilitate decision-making processes regarding adopting DSC practices. A key insight gleaned from this study has been the remarkable value of firms' proactive behaviour and innovation ambidexterity in facilitating DSC adoption decisions. Such adoption has empowered organisations to deploy appropriate interventions and allocate resources efficiently, considering the pivotal role of innovation exploration in contrast to the relatively limited impact of innovation exploitation within this context. Managers may also underscore the significance of firm size in shaping DSC adoption decisions. Small- and medium-sized enterprises (SMEs) have been more likely to embrace DSC initiatives than their larger counterparts. The agile scale and streamlined organisational structures of SMEs often translate into faster decision-making processes, allowing for DSC adoption with relative ease. SMEs might also exhibit a greater openness to reap the benefits associated with DSC systems, such as improved operational efficiency and cost reduction.
Originality/value
The present study has advanced DSC adoption research by examining innovation ambidexterity, knowledge management capability and firms' proactiveness. It has also provided valuable insights for scholars and managers, presenting a framework for decision-making processes regarding DSC adoption in an emerging economy context.
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Mahdieh Ahmad Amouei, Changiz Valmohammadi and Kiamars Fathi
In the digital age, emerging technologies have affected every industry. Information and communications technology and digital technologies have transformed traditional supply…
Abstract
Purpose
In the digital age, emerging technologies have affected every industry. Information and communications technology and digital technologies have transformed traditional supply chains into smart and more resilient ones, enabling effective management of challenges. Given the importance of the two topics, namely sustainable supply chain management and Industry 4.0 in supply chain management, on the one hand, and the dearth of theoretical research performed in this area on the other, this study aims to propose a conceptual model on a sustainable digital supply chain management in manufacturing companies.
Design/methodology/approach
This study utilized a qualitative approach. First, an in-depth review of the relevant literature was done. Then, following a multi-grounded theory methodology, relevant data were gathered by reviewing 92 papers and conducting nine semi-structured interviews with industry experts. These data were analyzed using the MAXQDA software.
Findings
A total of 41 concepts, ten sub-components and three main components (dimensions) were extracted, and the proposed conceptual model was presented. Finally, based on this conceptual model, three propositions were suggested.
Research limitations/implications
Considering that the present study was performed in the context of Iranian manufacturing companies, caution should be exercised in relation to the generalizability of the obtained results. Also, due to the problems in the digital technology infrastructure and the limited use of these technologies by manufacturing companies (emphasized by the interviewees), this study focused on the theoretical dimension of using digital technologies by these companies.
Practical implications
The proposed comprehensive model can help academicians as well as practitioners to focus better and explore the variables and constructs of the model, paving the way toward successful implementation of digital technologies in the manufacturing supply chain.
Originality/value
To the best knowledge of the authors, this study is among the first of its kind which presents a holistic and comprehensive digital supply chain model aimed at guiding companies to consider sustainability from all the main dimensions and their relevant indicators.