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- Title
The Impact of Digital Transformation on Supply Chain Procurement for Creating Competitive Advantage: An Empirical Study.
- Authors
Alabdali, Mahmoud Abdulhadi; Salam, Mohammad Asif
- Abstract
This study examined the impact of digital transformation (DT) on supply chain procurement (SCP) for the creation of competitive advantage (CAD). This study adopted a quantitative approach using a survey administered to 221 supply chain (SC) professionals through the professional networking website LinkedIn. The conceptual model was evaluated with the partial least squares-based structural equation model (PLS-SEM) using SmartPLS. The findings showed that DT has significant positive impacts on SCP and CAD, and that SCP has a significant positive impact on CAD. Supply chain procurement plays a significant mediating role in the relationship between DT and CAD. The findings are useful for decision-makers investing in digitally modernising their SC processes. The study recommends starting the DT of an SC with procurement, as procurement is a complex process involving a wide range of internal and external stakeholders. The results show that digital procurement may be an SC game changer in a competitive market. The study provides initial guidelines for a transition from traditional to smart procurement (procurement 4.0). Despite the prevalence of studies on SCP, there is a lack of empirical evidence on how DT of procurement functions can lead to sustainable CAD.
- Subjects
DIGITAL transformation; DIGITAL technology; SUPPLY chains; COMPETITIVE advantage in business; STRUCTURAL equation modeling
- Publication
Sustainability (2071-1050), 2022, Vol 14, Issue 19, p12269
- ISSN
2071-1050
- Publication type
Article
- DOI
10.3390/su141912269