The impact of digitally enabled supply chains on firm aggregate performance gains

Abstract

Many companies are transitioning to digitising their supply chain to yield firm performance. However, their supply chains are still fragmented, and they have not yet realised the full potential of digital supply chain capabilities. The full potential of digital supply chain capabilities cannot be realised without the integration of supply chain and competitive strategies. The understanding of the impact of digital platforms on firm performance is still limited, a considerable number of firms fail in their attempts to adopt such platforms. These realities provided the impetus for this study. The study addresses this by reviewing the relationship between digital supply chain integration and aggregate firm performance gains. This research aims to examine the linkage of supply chain integration, firm operational excellence, customer service and firm performance. The study was conducted within the interpretivism research paradigm aimed at focusing primarily on context-specific understandings. The researcher decided to apply this paradigm due to the philosophical orientation of the study, which seeks to capture the diverse perspectives on the impact of digitally enabled supply chains on firm performance. As part of the contribution, the study has identified five key properties that influence digital supply chain integration. These properties are Automation of supply chain processes; Agile responsiveness; Digital transformation and smart technologies; Information availability and Integrated planning and execution Given the research objective, “to identify the impact of digital supply chain integration on a firm’s aggregate performance”, the study has established three fundamental factors of supply chain integration that are capable of provoking firm performance. The three factors are process integration, internal integration and external integration. These factors are underpinned and characterised by four main actors, namely, automation, intelligence technology, integrated ICT, smart technology and cloud technologies. The dynamics and interplay of these three factors tend to influence the performance of the organisation through the firm’s operational excellence, financial performance and customer satisfaction. The contribution would help companies to tap into the full potential and benefits of a digitally enabled supply chain to create a firm aggregate performance.