This study examines how supply chain digitalization influences supply chain flexibility and viability through supply chain process integration. Drawing from a practice-based view and the stimulus-organism-response theory, we investigated the mediating role of supply chain process integration and the moderating role of supply chain dynamism.
The proposed model was validated using two-wave survey data from 300 manufacturing firms and their major suppliers in Ghana. Structural equation modeling (SEM) using AMOS software and Necessary Condition Analysis (NCA) was used to analyze the data.
Findings revealed that supply chain digitalization enhances flexibility primarily through integrated processes, particularly financial and physical flow integration, which in turn drives supply chain viability. The study also found that supply chain dynamism moderates the flexibility-viability relationship while establishing critical capability thresholds through necessity analysis. The results further show digitalization and financial integration as foundational must-to-have, with physical and information integration becoming necessary at progressively higher performance levels. The findings demonstrate that, while digitalization is crucial, it only delivers meaningful flexibility benefits when combined with systematic process integration, revealing a clear development hierarchy for supply chain capabilities.
This study is limited to manufacturing firms in Ghana, which may restrict generalizability to other industries and contexts. This cross-sectional design limits causal inferences. Future research should explore longitudinal relationships and examine how different digitalization technologies specifically contribute to integration processes, while investigating the role of organizational culture in facilitating digital transformation success.
Organizations should prioritize digitalization and financial integration as foundational capabilities before advancing to physical and information integration. Supply chain managers must recognize that digitalization alone is insufficient; it requires systematic process integration to achieve meaningful gains in flexibility. The identified capability thresholds provide a roadmap for phased implementation, enabling firms to strategically allocate resources and avoid premature investments in advanced integration technologies without proper foundations.
Enhanced supply chain viability through digitalization contributes to economic stability and job security within manufacturing communities. Improved supply chain flexibility enables better responsiveness to market disruptions, potentially reducing shortages and price volatility affecting consumers. This study’s focus on Ghanaian manufacturing firms highlights the importance of digital transformation in developing economies, potentially bridging technological gaps, and fostering sustainable economic development through modernized supply chain practices.
Our study offers a fresh perspective on supply chain viability by combining PBV and SOR theories to explain how supply chain digitalization (stimulus) influences supply chain process integration (organism) to enhance supply chain flexibility (response) and leads to supply chain viability (consequence), which is rare. While prior studies have highlighted the role of digitalization in improving supply chain operations, the specific integration mechanisms and practical requirements remain unclear. By combining SEM and NCA, we provide both symmetric and asymmetric perspectives, offering a benchmark or roadmap for achieving flexibility and viability in increasingly dynamic supply chain environments.
