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

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.

Keywords: Digital supply chain transformation, Malaysia manufacturing industry, Operational performance, Smart technology