Impact of Supply Chain Digitalization on Supply Chain Performance: A Mediated Moderation Model

https://doi.org/10.5281/zenodo.17943190

Abstract

This study investigates the impact of supply chain digitalization (SCD) on performance within Pakistan’s sugar industry, adopting a mediated moderation model to analyze the roles of resilience capabilities and risk management. Despite growing global emphasis on digital transformation, a significant research gap exists in understanding how these technologies influence supply chain dynamics in developing economies, particularly in agro-industrial sectors facing infrastructural and institutional challenges. Using a quantitative research design, data were collected from 400 supply chain (SC) professionals across seven sugar mills in Khyber Pakhtunkhwa, Pakistan, through structured questionnaires. The study employed regression analysis and Hayes’ PROCESS macro to test the hypothesized relationships. Findings suggested that SCD significantly enhances performance reducing operational costs and improving efficiency. Supply chain resilience (SCR) capabilities partially mediate this relationship confirming that digital tools bolster performance by strengthening risk anticipation and recovery. Supply Chain Risk Management (SCRM) acts as a critical moderator, amplifying digitalization’s benefits. Firms with mature risk frameworks derive greater supply chain performance (SCP) gains from digital investments. The study contributes to theory by integrating dynamic capabilities and contingency perspectives, demonstrating that digitalization’s impact is context-dependent. Practical implications highlight the need for Pakistani sugar mills to adopt integrated strategies combining technology, workforce up skilling, and risk mitigation. In conclusion, while digital transformation drives competitiveness, its full potential is unlocked only when paired with resilience-building and proactive risk management. Future research should explore longitudinal effects and sector-wide scalability of these findings. This study provides a roadmap for agro-industries in developing economies to navigate digital disruption while addressing systemic vulnerabilities.

Keywords: Supply chain digitalization, resilience capabilities, risk management, sugar industry, Pakistan, mediated moderation model.