Exploring IT-driven supply chain capabilities and resilience: the roles of supply chain risk management and complexity

Abstract

Purpose

In an era where global supply chains are increasingly susceptible to disruptions, this study aims to unlock the potential of IT integration within the supply chain in enhancing supply chain resilience. It investigates how this integration, combined with IT-driven capabilities, acts as a cornerstone in strengthening supply chain resilience (SCRs). The research navigates through the intricate dynamics of supply chain management to chart a strategic pathway for managers, illuminating the investments necessary to cultivate a resilient supply chain.

Design/methodology/approach

Grounding their investigation within the theoretical lens of dynamic resource-based theory, the authors designed a conceptual model to investigate the relationship between IT integration and SCR. Through the survey responses from supply chain professionals, the authors applied partial least squares-based structural equation modelling (PLS-SEM) to unravel the complexities of building a resilient supply chain.

Findings

Their investigation reveals that IT-driven supply chain capabilities (SCCs) are not just beneficial but essential in bridging IT integration with SCR. These capabilities emerge as vital, fully mediating the relationship between IT integration and SCR. Moreover, the significance of robust supply chain risk management (SCRM) in harnessing these IT-driven capabilities to bolster resilience is undeniable, offering organisations a sustainable advantage during times of turbulence.

Research limitations/implications

The primary limitation of this study is that data collection occurred during the COVID-19 pandemic. Therefore, the results may not be representative of different circumstances or periods. This study uncovered several noteworthy findings. The authors found that SCCs fully mediate the relationship between Supply Chain Management IT Integration (SCMITI) and SCR. In addition, the authors found that SCRM positively moderates the relationship between SCMITI and SCCs. The authors observed that Supply Chain Structural Complexity (SCSC) has no significant moderating effect on the relationship between IT-driven SCCs and SCR.

Practical implications

The results of this study offer managers a clear path forward for investing in SCR. Businesses must invest in SCMITI and SCRM to boost their SCR through developing IT-driven SCCs to ensure consistent business continuity. SCMITI does not necessarily increase SCR resilience when it is done poorly and does not lead to SCCs effectively. In this regard, managers must rely on collective wisdom to determine which technologies and IT applications will best meet their business needs and their peers’ requirements in the supply chain.

Originality/value

This study sheds light on the mechanisms through which IT enhances SCR. It fills a critical knowledge gap, focusing on the synergy between IT integration, risk management and the cultivation of IT-driven capabilities to navigate supply chain disruptions.