THE IMPACT OF SUPPLY CHAIN DIGITALIZATION ON OPERATIONAL PERFORMANCE: THE MODERATING ROLE OF ORGANIZATIONAL AGILITY

Abstract

This study investigates how supply chain digitalization (SCD) influences operational performance (OP) in the manufacturing sector of Pakistan, with a particular focus on the moderating role of organizational agility (OA). Drawing on the resource-based view (RBV) and dynamic capabilities theory (DCT), this research posits that digitalization of supply chain processes enhances firms’ efficiency, quality, and responsiveness, but these benefits are contingent upon the agility with which firms adapt to environmental uncertainties. Using a quantitative research design, survey data were collected from 320 supply chain and operations managers working in textile, pharmaceutical, and automotive firms in Pakistan. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). The findings reveal that supply chain digitalization has a significant positive impact on operational performance. Moreover, organizational agility positively moderates this relationship, indicating that digitalization is most effective when firms are flexible, adaptive, and capable of responding swiftly to market fluctuations. The results contribute to existing literature by extending the RBV and DCT to the context of digitalized supply chains in emerging economies. Practically, this study provides insights for managers to prioritize agility-enhancing practices alongside digital adoption to maximize performance outcomes. The paper concludes with theoretical implications, managerial recommendations, and future research directions.

Keywords: Supply Chain Digitalization, Operational Performance, Organizational Agility, Dynamic Capabilities, Emerging Economies, Pakistan