Leveraging supply chain digitalization for performance improvement in manufacturing and service firms: A practice-based view

Abstract

While an increasing number of firms are recognizing the benefits of supply chain (SC) digitalization and implementing it, many still struggle to realize the expected returns. To address this challenge, we propose a model grounded in the practice-based view, aiming to thoroughly investigate the relationships between SC digitalization, resource orchestration capabilities (ROCs), business model design (BMD), and firm performance. Through the analysis of 386 firms in mainland China, we identify that SC digitalization can boost firm performance by serially enhancing ROCs and BMDs. Interestingly, a cross-industry analysis further reveals that while ROCs are crucial for both manufacturing and service firms in sustaining the performance outcomes of SC digitalization, distinct differences in BMDs emerge. Manufacturing firms primarily depend on novelty-centered BMD, whereas service firms integrate both types of BMDs. Our findings not only advance research on SC digitalization but also help firms keep up with changes in the digital era by modifying their business models.