Innovativeness, visibility, and collaboration effect on supply chain performance: moderating role of digital supply chain integration

Abstract

Supply chain capabilities are fundamental in driving superior supply chain performance in diverse business environments. This study evaluates the impact exerted by supply chain capabilities on supply chain performance in the fast-growing apparel manufacturing sector in Bangladesh. Focusing on innovativeness, visibility, and collaboration as emerging components of supply chain capabilities, this research examines the associations among these factors and supply chain performance based on the dynamic capability theory. Additionally, the moderating role of digital supply chain deployment is tested in the research model. A total of 159 samples were collected from higher and lower-level supply chain managers and merchandisers from the apparel industry in Bangladesh, through an online survey. Data were analyzed using PLS-SEM to validate the research hypotheses. Findings indicate a significant positive relationship between firms’ innovativeness, visibility, and supply chain performance, while collaboration did not exhibit significant relationship with performance in this study. This indicates the lack of supply chain collaboration within the apparels industry in Bangladesh. The findings also highlight the critical importance of digital supply chain integration to increase both supply chain capacity and performance in this industry. As digital supply chain integration has received much attention in recent literatures, this study contributes to the current theory by refining the relationships between capabilities and performance in supply chain, for the lucrative apparel industry in a developing economy. Consequently, this research adds valuable contribution to the existing body of literature within the realms of supply chain management and Information Technology management. The study also provides meaningful practical insights for managers in the apparel sector to enhancing their supply chain capabilities, which could significantly improve their business performance and competitiveness.

Keywords

• Digital technology
• supply chain performance
• supply chain capability
• collaboration
• visibility
• innovation