Digital supply chain transformation: The role of smart technologies on operational performance in manufacturing industry

Author:

Lee Khai Loon1,Teong Chi Xin1,Alzoubi Haitham M23ORCID,Alshurideh Muhammad Turki45,Khatib Mounir El6,Al-Gharaibeh Shehadeh Mofleh7

Affiliation:

1. Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Kuantan, Malaysia

2. Applied Science Research Center, Applied Science Private University, Amman, Jordan

3. School of Business, Skyline University College, Sharjah, UAE

4. Department of Marketing, School of Business, The University of Jordan, Amman, Jordan

5. Department of Management, College of Business, University of Sharjah, Sharjah, United Arab Emirates

6. School of Business and Quality Management, Hamdan Bin Mohammed Smart University, Dubai, UAE

7. College of Business, Abu Dhabi University, Abu Dhabi, UAE

Abstract

This study aims to investigate the impact of digital supply chains and smart technology on the operational performance of the manufacturing industry. Due to the lack of knowledge and guidance in this area, the adoption of smart technology throughout the supply chain is limited, leading to poor operational performance. Therefore, the purpose of this study is to investigate how smart technology and digital supply chain transformation can improve operational performance. To test hypotheses and accomplish study goals, the Resource-Based View (RBV) theory was combined with a quantitative research strategy. The study population of companies was obtained from a manufacturing directory, and a minimum sample size of 107 companies was determined using G*Power. Additionally, 600 online surveys were sent to the manufacturing companies, resulting in a response rate of 17.83%. Data analysis was conducted using Smart-PLS 4.0 software, and eight of the 10 hypotheses were supported. The findings showed that smart technologies completely mediate the link between digital transformation and relationship performance, emphasizing the need for manufacturing organizations to focus on incorporating smart technology into their supply chain to enhance operational performance. The study concludes by presenting theoretical and practical implications, limitations, and recommendations.

Funder

Ministry of Higher Education

UMP Postgraduate Research Grants Scheme

Publisher

SAGE Publications

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