IMPACT OF SUPPLY CHAIN DIGITALIZATION ON PERFORMANCE: MODERATING ROLE OF TOP MANAGEMENT COMMITMENT IN PAKISTAN’S MANUFACTURING SECTOR
Abstract
Purpose: This research explores how Supply Chain Digitalization (SCD) affects Supply Chain Performance (SCP), considering the moderating influence of Top Management Commitment (TMC) in Pakistan's manufacturing industry.
Methodology & Design: The study employs an explanatory research design through a quantitative approach. The survey method has been applied using a structured questionnaire administered to Supply Chain Managers of 202 manufacturing firms across Pakistan, selected through a Simple Random Sampling method of Probabilistic Sampling. The analysis employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate the proposed hypotheses and examine the connections among SCD, SCP, and TMC.
Findings: The research indicates that SCD enhances SCP by optimizing important metrics such as lead time and market responsiveness. However, the moderating effect of TMC shows a slightly negative impact on the SCD-SCP relationship. This indicates that while SCD enhances SCP, its success depends largely on how well top management aligns SCD with its strategic goals and supports its implementation.
Limitations: This study is constrained by its focus on manufacturing firms in Pakistan and its reliance on a cross-sectional research design, which may overlook long-term effects. Additionally, the sample size might not adequately reflect the diversity present in Pakistan's manufacturing sector.
Implications: To enhance SCP through digitalization, top management in Pakistani manufacturing firms should align their strategic objectives with digitalization goals, provide sufficient resources and training for employees, and ensure consistency. Future research should consider conducting longitudinal studies and investigating the distinctions between large-scale enterprises and small-to-medium enterprises to gain more comprehensive insights.
Keywords: Supply Chain Digitalization, Supply Chain Performance, Top Management Commitment, Manufacturing Secto
