Enhancing supply chain competences through supply chain digital embeddedness: an institutional view

Abstract

Purpose This study aims to test how three types of institutional pressure (normative, coercive, and mimetic) influence supply chain digital embeddedness (SCDE) and how SCDE benefits supply chain (SC) competences. Design/methodology/approach The authors develop and test hypotheses through structural equation modeling (SEM) based on data from 201 European firms. Institutional theory is applied to determine the reasons that lead SCs to embed digitally. SCDE is assessed through three dimensions: technology, infrastructure and culture. The data were analyzed using SEM-partial least squares (PLS-SEM) modeling with SmartPLS software. Findings The findings show a positive relationship of normative and coercive pressures to SCDE but no relationship between mimetic pressures and SCDE. Additionally, results confirm a positive relationship between SCDE and SC competences that contribute to SC competitive advantage obtaining. Practical implications The results underscore the importance of analyzing the environment when undertaking digital projects. Key issues include SC culture and infrastructure in these projects and the advisability of anticipating potential influence of digitalization projects on SC competences that support the chain’s competitive advantage. Originality/value This study contributes to institutional theory by providing empirical evidence of the individual effect of the three types of institutional pressure, with noteworthy lack of influence from mimetic pressures. The paper also contributes a conceptualization of SCDE composed of three dimensions: digital technologies, digital infrastructure and digital culture. Finally, the study advances the literature on SC competences.