Critical factors of digital supply chains for organizational performance improvement

Abstract

Technological advancement is re-defining supply chains (SCs) processes and soon traditional ways of managing SCs will no more be feasible and effective. Due to recent advancement in technology, digitalization has become an emerging topic among decision-makers and researchers. To cope-up with this emerging trend in customer behavior and remain competitive, organizations must move from their traditional ways of managing their SCs to digital supply chains (DSCs) for improved organizational performance. Therefore, the purpose of this paper is in two folds: First, to identify critical factors of DSCs that are essential for transitioning traditional SCs to DSCs to improve organizational performance. Second, interpretive structural modeling (ISM) is used to establish the relationship among critical factors and MICMAC (Matriced’ Impacts Croise´s Multiplication Applique´e a´un Classement) used to identify the driving and dependency power of the critical factors. Thus, this study identified fifteen DSC critical factors and established their direct and indirect effect on DSCs. The results show that “SC resilience”, and “proactive prevention” have the highest dependency power factors whilst “integration” and “advanced operational models” have the highest driving power factors. This study can help SC managers and decision-makers to understand the critical factors essential in adopting DSCs for improving organizational performance.

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