Is digitalization necessary? Configuration of supply chain capabilities for improving enterprise competitive performance

The advent of the digital economy era has provided significant opportunities to establish new supply chain networks. However, many manufacturing enterprises struggle to effectively allocate their digital and non-digital supply chain resources. This study explores the interplay between digital supply chain capabilities (DSCCs) and traditional supply chain capabilities (TSCCs) and analyzes combinations of these supply chain capabilities that can enhance enterprise competitive performance (ECP). Based on a qualitative comparative analysis of 221 cases of manufacturing enterprises, the study reveals three capability configurations leading to high ECP: non-digital, TSCCs-centered, and DSCCs- and TSCCs-balanced. The findings indicate that for most firms, digitalization is an important factor, and they achieve high ECP with the DSCCs- and TSCCs-balanced capability configuration; however, some small and medium enterprises (SMEs) in particular industries can also enhance ECP without digitalization when their TSCCs are high.