FROM CANE TO CHAIN: THE ROLE OF DIGITALIZATION AND RISK MANAGEMENT IN SUGAR SUPPLY EFFICIENCY

Abstract

This study investigates the impact of supply chain digitalization on supply chain performance in Pakistan’s sugar industry, emphasizing the moderating role of supply chain risk management. While digital transformation is increasingly recognized as a driver of operational excellence, its effectiveness in developing economies especially in agro-industrial sectors remains underexplored. Using a quantitative approach, data were collected from 400 supply chain professionals across seven sugar mills in Khyber Pakhtunkhwa through structured questionnaires. Regression analysis and Hayes’ PROCESS macro were employed to test the proposed relationships. The findings reveal that supply chain digitalization significantly enhances performance by improving efficiency and reducing operational costs. Moreover, supply chain risk management strengthens this relationship, indicating that firms with effective risk management systems derive greater benefits from digital initiatives. The study contributes to the literature by integrating digitalization with contingency theory, highlighting that the performance gains from digital technologies are contingent upon organizational risk preparedness. Practically, the findings suggest that agro-industrial firms in developing economies should align digital investments with robust risk management frameworks to fully realize performance improvements. Future research may consider exploring cross-sectoral generalizability and long-term impact.

Keywords: Supply Chain Performance, Supply Chain Digitalization, Supply Chain Risk Management, Sugar Industry