Supply chain digitalization and performance: A moderated mediation of supply chain visibility and supply chain survivability

Abstract

The COVID-19 crisis has notably impacted global supply chains as it has disrupted manufacturing operations. To recover from the aforementioned disruptions, supply chain digitalization [SCD] is increasingly being acknowledged to help the recovery process. Based on this, scholars have called for additional research on how SCD can enhance supply chain visibility [SCV] and boost supply chain performance [SCP] in turbulent environments. Based on 399 valid responses collected through cross-sectional method from Turkish manufacturing firms and using a non-probabilistic sampling method [i.e., purposive sampling], this research explores the effect of SCD on SCP. The mediating role of SCV and the moderating role of supply chain survivability [SCS] on the SCD-SCP relationship were also explored. The findings showed that SCD has a positive effect on SCP. SCD has a positive effect on SCV. SCV has a positive effect on SCP. The link between SCD and SCP is mediated by SCP. The results also revealed that SCS moderated the SCD-SCV link such that SCD has a stronger, positive relationship with SCV when SCS is high than when it's low. SCS moderates the SCD-SCP link, such that at low levels of SCS, the positive effect of SCD on SCP is weakened. The indirect positive effect of SCD on SCP via SCV is strongest when supply chain survivability is high. The findings suggest that SCD can improve cost-effectiveness, promote communication and information efficiency, and enhance supply chain resilience to improve performance after disruptions. This study provides insightful new implications for both supply chain literature and practitioners.

Keywords

• Supply chain digitalization
• Firm performance
• Supply chain visibility
• Supply chain survivability
• Turkey
• Manufacturing sector