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Digital Transformation and Supply Chain Agility in an Emerging Economy: Mediating Role of Dynamic Capabilities

Favour I. Remi-Aworemi, Akeem O. Salami

Abstract


This study examined the influence of digital transformation on supply chain agility, and the mediating role of dynamic capabilities in the relationship between digital transformation and supply chain agility. The study which anchors dynamic capabilities theory explains how firms build, integrate, and reconfigure competencies to address the dynamic business environments. A quantitative survey design was employed with 385 respondents from consumer goods firms in Southwest Nigeria. Hypotheses were tested with simple linear regression and PROCESS macro (Model 4) for mediation testing. The findings revealed that digital transformation significantly influenced supply chain agility (β = 0.789, p < .001, R² = .465). Also, dynamic capabilities significantly mediated the digital transformation-supply chain agility relationship (indirect effect = 0.455, 95% CI [0.414, 0.497]). The study found that digital transformation alone is insufficient for achieving supply chain agility; firms must cultivate dynamic capabilities to effectively leverage digital investments for enhanced supply chain responsiveness. The study contribution to the body of literature is to provide empirical evidence from the context of an emerging market and offers practical implications for managers seeking to leverage digital transformation for enhanced supply chain performance.


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References


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