Improving Sustainable Supply Chain Performance Through Digital Transformation and Supply Chain Capabilities: A Time-Lagged Multi-Mediation Model Assessment in China

This research aims to empirically examine the effects of digital transformation (DT) and supply chain capabilities (i.e., resilience, agility, adaptability, and collaboration) on sustainable supply chain performance (SSCP) through the key tenets of resource orchestration theory (ROT). To achieve this aim, the current study collected data from 110 small and medium-sized enterprises (SMEs) professionals in China using purposive sampling. Empirical data were analysed with partial least squares – structural equation modelling. The finding shows that DT is significantly associated with SSCP and supply chain capabilities (SCCaps) (i.e., agility, resilience, adaptability, and collaboration), which partially mediate the relationship between DT and SSCP. The study also found positive relationships between SCCaps and SSCP. The current study expands the ROT by confirming the mediating role of SC adaptability, SC agility, SC resilience, and SC collaboration in the association between DT and SSCP. From a practical point of view, the results provide actionable insights for SMEs aiming to enhance SSCP by leveraging digital systems, improving resilience, increasing agility and adaptability.