This study investigates how digital transformation strategy (DTS) influences sustainable supply chain performance (SSCP) through digital circular supply chains (DCSC) in manufacturing SMEs in an emerging market economy such as Vietnam. It also investigates whether environmental dynamism (ED) moderates the relationships between DTS and DCSC, and between DCSC and SSCP.
Primary data were captured using a tailored questionnaire, a quantitative methodology was employed. The model incorporated moderated mediation and tested using survey data from 468 managers/directors in Vietnam’s manufacturing SME. It employs partial least squares structural equation modeling (PLS-SEM) technique to evaluate the proposed hypotheses.
The results show that DTS positively affects SSCP both directly and indirectly. DCSC has a significant positive impact on SSCP and partially mediates the relationship between DTS and SSCP. Furthermore, ED moderated the relationships between DTS and DCSC as well as between DCSC and SSCP.
This study yields novel insights into how DTS drives SSCP through DCSC in manufacturing SMEs operating in emerging economies. It extends the literature by identifying ED as a critical boundary condition shaping the effectiveness of digital transformation. The findings yield valuable implications for managers seeking to leverage digital strategies and circular technologies to enhance SSCP.
