Operational Performance in Relation to Digital Supply Chain: An Evidence from Pharmaceutical Sector of Khyber Pakhtunkhwa, Pakistan

Abstract

Abstract

The concept of "digital supply chain" (DSC) pertains to the utilization of up-to-date information systems and advanced technologies in order to augment the amalgamation and flexibility of a company’s supply chain. This research examines the effect of DSC strategy on operational performance (OP). Employees working in the pharmaceutical sector of KP, Pakistan, provided their input for the data collection using quota sampling techniques. A comprehensive analysis of precisely 237 observations has been conducted utilizing partial least square structural equation modeling with the aid of the software SmartPLS 3.0. The findings indicate that DSC significantly and positively affect operational performance (β=0.58) and its constituent dimensions (cost reduction, productivity and quality performance). The results imply that digitization of supply chain adds to operational performance and managers shall adopt digitization of supply chain activities. Organizations that have digitalize their supply chain processes or intends to do so shall benefit from the findings regarding positive affect of DSC on operation performance. The discoveries also add to the academic body of knowledge on the DSC and fill a research gap by providing evidence that operational performance can be enhanced through digitization of supply chain activities.

      Keywords: Digital Supply Chain, Operational Performance, Pharmaceutical Sector, PLS-SEM