Strategic supplier relationships and supply chain resilience: Is digital transformation that precludes trust beneficial?

Enabling manufacturing firms' supply chain performance in the Middle East region through boosting the quality of multi-directional relationship, and supply chain risk dilution: A moderated-mediation model

Elasticity and dependability factors are considered fundamental elements that have a significant and direct impact on reducing waste in manufacturing companies' resources as well as their supply chains (SCs) in order to improve their overall performance, as well as improving the performance of these companies' supply chains. This is in addition to not overlooking the effective and important strategic relationship and the role of suppliers to manufacturing companies as a mediating factor in the relationship between the qualities of the multi-directional relationship and mitigating the risks that it may be exposed to during its operational and production process. 156 samples were included in this study out of 743 small to large manufacturing companies in the Middle East region, including Jordan, Turkey, Saudi Arabia, and Egypt, where an experimental examination was conducted of the companies targeted in this study to prove or reject the proposed hypotheses. Structural equation modeling was applied and used to examine the proposed hypotheses. The results of this study indicated that the elements of flexibility and dependability have positive, direct, and statistically significant effects on mitigating supply risks, and this therefore works to improve the performance of the supply chain of manufacturing companies, especially small and medium-sized companies. In addition, the results of this study showed that building strong strategic partnerships with dependable, certified, high-performance, and flexible suppliers has a positive impact on moderating the potential supply risks that manufacturing companies may face in their operational processes, while the results showed that there is no statistically significant effect on the relationship between dependability and mitigate supply risks. This research paper offers empirical evidence for using the quality of the multi-directional relationship within supply risk dilution of manufacturing firms' context in developing countries for enhancing their supply chain performance. This study provides a clear roadmap and basis for managers and decision-makers in manufacturing companies to focus on the importance of the quality of relationships with suppliers and business partners in their business dealings to limit and mitigate the risks that they may face, which may lead to interruption of the necessary supplies to them.

Unlocking sustainable supply chain performance through dynamic data analytics: a multiple mediation model of sustainable innovation and supply chain resilience

This article provides a theoretical framework for comprehending the connections between dynamic data analytics capability (DDAC), innovation capabilities (IC), supply chain resilience (RES), and sustainable supply chain performance (SSCP). Since this is the first empirical investigation of the sequential mediation effect between DDAC and SSCP through IC and RES, it fills a critical need in the supply chain literature. A quantitative methodology was used, involving a survey questionnaire distributed to 259 large Pakistani manufacturing firms. We used PLS-SEM to test for the expected associations. Findings show that using DDAC has a beneficial effect on both innovative and resilient capabilities, which in turn leads to better SSCP. The research illuminates the sequential mediating roles of product, process, and resilience, underlining the need of combining data-driven innovation with resilience in order to achieve sustainable supply chain performance. These results provide useful guidance for businesses that want to boost their sustainability results by taking a more all-encompassing approach to data-driven innovation and resilience.

Digitalization and artificial knowledge for accountability in SCM: a systematic literature review

Purpose

In this study, the authors examine artificial knowledge as a fundamental stream of knowledge management for sustainable and resilient business models in supply chain management (SCM). The study aims to provide a comprehensive overview of artificial knowledge and digitalization as key enablers of the improvement of SCM accountability and sustainable performance towards the UN 2030 Agenda.

Design/methodology/approach

Using the SCOPUS database and Google Scholar, the authors analyzed 135 English-language publications from 1990 to 2022 to chart the pattern of knowledge production and dissemination in the literature. The data were collected, reviewed and peer-reviewed before conducting bibliometric analysis and a systematic literature review to support future research agenda.

Findings

The results highlight that artificial knowledge and digitalization are linked to the UN 2030 Agenda. The analysis further identifies the main issues in achieving sustainable and resilient SCM business models. Based on the results, the authors develop a conceptual framework for artificial knowledge and digitalization in SCM to increase accountability and sustainable performance, especially in times of sudden crises when business resilience is imperative.

Research limitations/implications

The study results add to the extant literature by examining artificial knowledge and digitalization from the resilience theory perspective. The authors suggest that different strategic perspectives significantly promote resilience for SCM digitization and sustainable development. Notably, fostering diverse peer exchange relationships can help stimulate peer knowledge and act as a palliative mechanism that builds digital knowledge to strengthen and drive future possibilities.

Practical implications

This research offers valuable guidance to supply chain practitioners, managers and policymakers in re-thinking, re-formulating and re-shaping organizational processes to meet the UN 2030 Agenda, mainly by introducing artificial knowledge in digital transformation training and education programs. In doing so, firms should focus not simply on digital transformation but also on cultural transformation to enhance SCM accountability and sustainable performance in resilient business models.

Originality/value

This study is, to the authors' best knowledge, among the first to conceptualize artificial knowledge and digitalization issues in SCM. It further integrates resilience theory with institutional theory, legitimacy theory and stakeholder theory as the theoretical foundations of artificial knowledge in SCM, based on firms' responsibility to fulfill the sustainable development goals under the UN's 2030 Agenda.

Hedging the bet on digital transformation in strategic supply chain management: a theoretical integration and an empirical test

Purpose

This study conceptualizes the digital transformation (DT) strategy in a supply chain context, identifies its drivers from intra- and inter-organizational perspectives and examines the effect of the DT strategy on the strategic agility and financial performance of Chinese manufacturing firms.

Design/methodology/approach

The authors constructed a theoretical model by synthesizing the diffusion of innovation and organizational information processing theory (OIPT) and provided a set of hypotheses. The authors empirically tested the arguments using partial least squares structural equation modeling using data from a sample of 200 manufacturing firms in China.

Findings

The findings indicate that while supply chain connectivity positively affects DT adoption and DT routinization, data analytics capability and organizational learning positively influence DT adoption but not DT routinization. The mediation analysis also shows that DT strategy has significant direct effects on financial performance and a stronger indirect influence on financial performance via improved strategic agility.

Research limitations/implications

This study responds to repeated calls for a new understanding of supply chain DT strategy. In addition, the study offers important contributions to the literature by identifying the potential discord between the existing DT strategy and the supply chain context and proposes a new framework that provides essential theoretical underpinnings.

Originality/value

This study enriches the literature by conceptualizing and validating the dimensions, driving factors and performance implications of DT strategy in strategic supply chain management.

How do digital technologies improve supply chain resilience in the COVID-19 pandemic? Evidence from Chinese manufacturing firms

Digital technologies (DTs) can assist businesses in coping with supply chain (SC) disruptions caused by unpredictability, such as pandemics. However, the current knowledge of the relationship between DTs and supply chain resilience (SCR) is insufficient. This study draws on information processing theory to develop a serial mediation model to address this deficiency. We analyze a sample set consisting of 264 Chinese manufacturers. The empirical results reveal that digital supply chain platforms (DSCPs), as well as supply chain traceability (SCT) and supply chain agility (SCA), fully mediate the favorable association between DTs and SCR. Specifically, the four significant indirect paths indicated that firms can improve SCR only if they use DTs to directly or indirectly improve SCT and SCA (through DSCPs). Our study contributes to the literature on resilience by examining the possible mechanism of mediation through which DTs influence SCR. The findings also offer essential insights for firms to modify their digital strategies and thrive in a turbulent environment.

Identifying the pathways through digital transformation to achieve supply chain resilience: an fsQCA approach

The manufacturing industry has placed a greater emphasis on digital transformation, especially under the impact of COVID-19. However, the influence mechanism between digital transformation and supply chain resilience is still a topic of discussion. Resource orchestration theory indicates that a firm not only need to emphasize the investment of resources but also pays attention to the allocation of resources. Therefore, based on the resource orchestration theory, this study divides the digital transformation into digital transformation breadth and digital transformation depth and combines R&D spending (R&D intensity and R&D employee) and contingency factors (firm size) to construct a theoretical path of "digital transformation-supply chain resilience." This research uses fuzzy sets qualitative comparative analysis to explore how to configure the digital transformation to achieve high supply chain resilience based on data from 193 listed manufacturing firms. Using the fsQCA software, it was discovered that there were no necessary conditions for achieving high supply chain resilience; sufficient condition analysis revealed that there are six paths to achieving high supply chain resilience, four of which can be summarized as digital transformation driven and the other two as R&D spending driven. These several approaches highlight the complicated causal relationship between digital transformation and supply chain resilience, as well as give theoretical and practical recommendations for firms looking to implement digital strategies and enhance their supply chains.

Trust Relationship with Suppliers, Collaborative Action, and Manufacturer Resilience in the COVID-19 Crisis

Frequent emergencies highlight the importance of corporate resilience, and relationship governance behaviors have received much attention for improving firms' resilience. This study uses structural equation modeling to test hypotheses based on trust theory and synergy theory. It investigates the impact of the behavioral operations management approach of collaborative action on manufacturers' resilience in Chinese manufacturing firms during the COVID-19 pandemic. Environmental uncertainty is used as a moderating variable to explore its role between the trust relationship with suppliers and collaborative action, which are two types of relationship management behaviors. The results show that collaborative action positively affects each of the three stages of manufacturer resilience. Moreover, collaborative action mediates between the trust relationship with suppliers and the different dimensions of manufacturer resilience. Environmental uncertainty does not moderate the facilitative effect of the trust relationship with suppliers on collaborative action. This study examines the relational governance behavior of firms in the context of a particular Chinese culture to build a bridge between relational governance behavioral science and firm resilience management. This study tries to provide inspiration for managers to improve the risk management ability of manufacturing enterprises by using relationship management theory and behavioral science.

Leveraging digital and relational governance mechanisms in developing trusting supply chain relationships: the interplay between blockchain and norm of solidarity

Purpose

Drawing on the signaling theory and the relational exchange theory, this study investigates how buyer–supplier trust is influenced through the congruence and incongruence between blockchain and norm of solidarity. The moderating role of technology uncertainty is further examined.

Design/methodology/approach

Using a survey data of 110 Chinese firms, this study empirically tests not only the combined effect of blockchain and norm of solidarity on trust, but also how this combined effect is moderated by technology uncertainty. The proposed hypotheses are tested using the polynomial regression analysis and the response surface methodology.

Findings

The results suggest that trust increases along with an increasing congruence between blockchain and norm or solidarity, but in a diminishing rate (i.e. an inverted U-shaped relationship). Simultaneously, incongruence between blockchain and norm of solidarity can also guarantee sufficient trust (i.e. a U-shaped relationship). Moreover, technology uncertainty overturns the inverted U-shaped relationship between blockchain and norm of solidarity congruence on trust into a U-shaped relationship and nullifies the U-shaped relationship between blockchain and norm of solidarity incongruence on trust.

Originality/value

This study enriches supply chain governance literature by introducing the emerging blockchain governance and examining the blockchain governance's interplay with a conventional relational norm. The study emphasizes that the combined effects of these two are quite complex. Blockchain and norm of solidarity can offset each other’s limitations when both are at low to moderate levels. But simultaneous pursuit of both high blockchain and norm has only limited marginal benefits. Furthermore, the study also highlights the importance of technology uncertainty under which the combined effects between the two governance mechanisms vary. Collectively, the results provide nuanced insights into the design of supply chain governance portfolios in the digital era.

Impacts of IT capability and supply chain collaboration on supply chain resilience: empirical evidence from China in COVID-19 pandemic

Purpose

Building supply chain resilience is increasingly recognized as an effective strategy to deal with supply chain challenges, risks and disruptions. Nevertheless, it remains unclear how to build supply chain resilience and whether supply chain resilience could achieve a competitive advantage.

Design/methodology/approach

By analyzing the data collected from 216 firms in China, the current study empirically examines how information technology (IT) capability and supply chain collaboration affect different forms of supply chain resilience (external resilience and internal resilience) and examines the performance implications of these two forms of supply chain resilience.

Findings

Results show that IT capability is positively related to external resilience, whereas supply chain collaboration is positively related to internal resilience. The combination of IT capability and supply chain collaboration is positively related to external resilience. In addition, internal resilience is positively related to firm performance.

Research limitations/implications

This study used only cross-sectional data from China for hypothesis testing. Future studies could utilise longitudinal data and research other countries/regions.

Practical implications

The findings systematically assess how IT capability and supply chain collaboration contribute to supply chain resilience and firm performance. The results provide a benchmark of supply chain resilience improvement that can be expected from IT capability and supply chain collaboration.

Originality/value

The study findings advance the understanding of supply chain resilience and provide practical implications for supply chain managers.

Digital technology deployment and firm resilience: Evidence from the COVID-19 pandemic

Although many firms are aggressively deploying diverse digital technologies (DTs) at inter- and intra-organizational levels, not all firms have achieved the anticipated resilience, especially in the face of supply chain disruptions caused by “black swan” events such as the COVID-19 pandemic. To demystify this phenomenon, we draw on the asset orchestration perspective to investigate how breadth (i.e., the scope) and depth (i.e., the scale) of DT deployment influence a firm's resilience to supply chain disruptions. Survey data from 162 Chinese manufacturing firms show that the depth of DT deployment exerts a positive effect on firm resilience. Interestingly, the breadth has a non-significant effect on firm resilience. Moreover, while the breadth and depth of DT deployment both enhance supply chain coordination, supply chain coordination mediates only the relationship between DT deployment depth and firm resilience. Finally, market acuity positively moderates the relationship between supply chain coordination and firm resilience. We contribute to the literature by providing new theoretical explanations for the inconsistency in the reported relationship between technology deployment and resilience. Our study also helps firms reevaluate their DT deployment.

Influence of Trust Relationships with Suppliers on Manufacturer Resilience in COVID-19 Era

With the frequent occurrence of emergencies such as the COVID-19 pandemic in recent years, resilience has become increasingly important for the stable and sustainable development of the manufacturing companies. Despite growing interest in supply chain resilience, less attention has been paid to manufacturer resilience and how to improve it through supplier relationship governance. Based on resource-based view (RBV) theory, trust theory and the literature on resilience, this study developed new constructs of measuring manufacturer resilience by temporal logic and sheds light on how the trust relationship with suppliers affect manufacturer resilience via the information-sharing level. The data is collected from 351 respondents who are independent directors or managers of manufacturing companies in China. This study adopted exploratory factor analysis (EFA) and structural equation modeling (SEM) to explore the dimensions of manufacturer resilience and to test the hypotheses. The results reveal that the trust relationship with suppliers has significant positive impacts on three dimensions of manufacturer resilience, that is, preparedness, responsiveness, and recovery capability. In addition, the information-sharing level partially mediates the impact of the trust relationship with suppliers on manufacturer resilience. Specifically, the information-sharing level positively affects preparedness, responsiveness, and recovery capability. Moreover, the trust relationship with suppliers facilitates the information-sharing level. Finally, the study contributes to the manufacturer resilience literature and provides useful guidance for the manufacturing enterprises in enhancing resilience quickly.

Did COVID-19 change the rules of the game for supply chain resilience? The effects of learning culture and supplier trust

Purpose

This paper aims to clarify the effects of learning culture and trust on supply chain resilience (SCR) and to investigate their role specifically during COVID-19 pandemic to aid decision-makers. For this, a conceptual model proposing relations between variables was developed. The focal point of this research is to investigate the relationship between organizational learning culture (OLC) and SCR, and the mediating effect of supplier trust (ST) in the relationship before and during a pandemic.

Design/methodology/approach

This study relies on a unique dataset collected through two separate cross-sectional surveys corresponding to pre- and during-pandemic times that were conducted at the same time. The questionnaire was collected from 245 medium- to senior-level managers, to ensure a thorough understanding about the company’s inner workings and supply chain (SC). To test the proposed research model, the authors processed their data and model using lavaan package in R.

Findings

The findings show that OLC and ST have positive and significant effects on SCR. Furthermore, learning culture also triggers ST. Thus, it is ST that explained, as a mediator, the positive effects of OLC on SCR. All these findings are similar for both before and after the pandemic. A critical finding is about the effect of size (small vs. large) and ownership (local vs. multinational). The analysis suggests that during pandemic multinational companies and larger organizations exhibit higher SCR than their counterparts.

Research limitations/implications

First, responses to the questionnaire were collected from only one country. Cross-cultural comparisons can be made by collecting data from different countries in future research. Second, the data were obtained from companies operating in different sectors, with a majority in manufacturing. It is possible to obtain more specific findings by analyzing responses from a specific industry. Third, results of this study reflect responses of only SC and manufacturing managers, but other departments such as marketing or finance can also complement the findings. Finally, several other organizational variables may be factored in as moderators to enrich the conceptual model.

Practical implications

The authors believe that findings of this research will guide shareholders and managers to develop effective strategies in order to prevent SC disruptions during similar risk/shock scenarios.

Originality/value

Similar to earlier research, this study considers the importance of ST on SCR. But this study differs in analyzing the effects of OLC on SCR directly and in taking the mediating effect of ST into account. The authors test the strengths of these relationships individually before and during COVID-19 pandemic. Under pandemic conditions, the authors present empirical evidence on the effects of organizational learning and ST on SCR. In contrast to previous research on SCR, this study connotes the importance of an organization’s internal dynamic capabilities in developing resilience.

Supply Chain Diversification, Digital Transformation, and Supply Chain Resilience: Configuration Analysis Based on fsQCA

To determine the influence of COVID-19 on supply chains, previous research has examined the impact of supply chain diversification and digital transformation on supply chain resilience, but few studies have integrated these two aspects to understand their impact on supply chain resilience. Given this, our study implements the fuzzy set qualitative comparative analysis (fsQCA) method to investigate the influence of supply chain diversification (supply base diversification and customer base diversification) and digital transformation (digital transformation depth and breadth) on supply chain resilience. Using data from 191 listed manufacturing firms, it is shown that the dimensions of supply chain diversification and digital transformation do not have the necessary conditions to achieve high supply chain resilience, while the analysis of sufficient conditions shows that three paths can achieve high supply chain resilience—namely, those driven by digital transformation, supply chain diversification, and supplier centralization and customer base diversification. This study demonstrates the numerous and complex linkages between antecedent and outcome, and firms can choose the path that is best for them to improve supply chain resilience based on their size, degree of digital transformation, and supply chain diversification.

Investigating the relationship between digital technologies, supply chain integration and firm resilience in the context of COVID-19

The outbreak of the COVID-19 pandemic has significantly augmented the complexity of information, adding to the challenges that firms face in effectively processing and grasping accurate information. As a result, the production uncertainty of firms has been seriously intensified during the pandemic, disrupting the normal operation of firms and their supply chains. Digital technologies serve as salient tools that help firms to process and analyse information, consequently enhancing firm resilience in the face of supply chain disruptions. This study aims to examine how digital technologies affect firm resilience in the context of COVID-19 through the lens of information processing theory and a large-scale survey conducted among Chinese manufacturers. Specifically, our study evaluates the mediating effect of supply chain integration (internal integration, customer integration and supplier integration) and the moderating effect of information complexity. The results show that supply chain integration plays a mediating role in the effect of digital technologies on firm resilience, and the mediation effect is particularly significant for customer integration. Furthermore, digital technologies have a stronger impact on firm resilience when information complexity is high. The findings advance our understanding and recognition of the resilience implications of digital technologies and provide important managerial implications for improving firm resilience in the context of COVID-19.

Multi-dimensional supply chain flexibility and supply chain resilience: the role of supply chain risks exposure

Natural disasters and unexpected disruptive events have forced practitioners and researchers to build resilience capability into their systems to survive and grow in tempestuous and turbulent times. This study empirically examined the effect of multi-dimensional supply chain flexibility (MDSCF) in improving supply chain resilience (SCRES) under a high supply chain (SC) risk environment. The study incorporated a survey technique and utilized valid responses from 191 large-scale manufacturing (LSM) firms of Pakistan. PLS-SEM is employed to analyze the hypothesized relationships. The findings indicated that MDSCF significantly contributes to improving SCRES. Moreover, the study shows strong significant moderating effects of the customer-oriented and external risks and the weak moderating effect of supplier-oriented risks towards augmenting SCRES. The study contributes to the SC (SC) risk management literature by providing empirical support for the need for multi-dimensional SC flexibility measures in bolstering SCRES under the high SC risk environment.

Control supply chain risks in digital transformation

Digital transformation contributes to enterprise supply chain resilience, but how to control the risks involved and whether this control contributes to supply chain resilience remains to be explored. This paper aims to clarify the relationship between risk control and resilience in the process of digital transformation and to construct a digital transformation supply chain risk (DTSCR) control process system. In this paper, we first use the SLRs method to retrieve 469 papers to construct a dimensional system of DTSCR from the theoretical perspective; we then test whether DTSCR control helps supply chain resilience through a structural equation model; finally, based on the case study of the institute of building materials of China Academy of Building Research, we use a Bayesian believe network to construct a risk control system. Our research contributes to existing literature by improving supply chain resilience from a risk perspective, and the risk control system innovatively constructed in this paper is also of significance for enterprises to carry out DTSCR control in practice.