Progress and Excellence Research

Progress and Excellence Research

Application of digital supply chain on supply chain performance with emphasis on flexibility capabilities

Document Type : Original Article

Authors
1 PhD student in Industrial Management, Production and Operations, Faculty of Management, University of Tehran
2 Associate Professor, University of Tehran
Abstract
The outbreak of Covid-19 has accelerated the creation of flexible supply chains, and digitalization of the supply chain is gradually recognized as a powerful tool for this purpose. Nevertheless, researchers generally agree that more empirical studies should be conducted on how digitalization can facilitate supply chain flexibility at different stages and enhance supply chain performance in a highly uncertain environment. To reiterate this call, this study develops a theoretical influence mechanism of "supply chain digitalization → supply chain flexibility → supply chain performance". The proposed relationships are verified using survey data collected from Behrouz Manufacturing Company. The results help to identify the paths that digitization and supply chain flexibility can take to improve supply chain performance in a turbulent environment. The different roles of three supply chain resilience capabilities, namely absorptive capability, response capability (during disruption), and recovery capability (after disruption), which affect supply chain performance differently, are highlighted. Furthermore, it was found that digitalization can have a different impact on these three supply chain flexibility capabilities through different aspects of resources and structural adjustment measures. The findings also confirm the mediating role of absorptive capability, response capability, and recovery capability between digitalization and supply chain performance. During a crisis, supply chain digitization can increase cost-effectiveness, increase information and communication efficiency, and improve supply chain flexibility to achieve better performance.
Keywords