IDENTIFYING THE ROLE OF DIGITALIZATION ON SUPPLY CHAIN PERFORMANCE IN THE POST-COVID-19 ERA: THE MEDIATION EFFECT OF SUPPLY CHAIN EFFICIENCY AND INTEGRATION

Abstract

This study examines how Supply Chain Digitalisation (DGT) affects Supply Chain Performance (SCP) in the extremely unstable post-COVID-19 manufacturing sector of Karachi, Pakistan. Based on the Resource-Based View (RBV) and Dynamic Capabilities View (DCV), the study fills a significant theoretical gap by assessing the moderating boundary conditions of Supply Chain Dynamism (SCD) and Supply Chain Resilience (SCR), as well as the mediating roles of Supply Chain Integration (SCIS) and Supply Chain Efficiency (SCE). A purposive sample of 159 supply chain and operations personnel from formal, medium-to-large-scale manufacturing companies was used in this quantitative, cross-sectional study. PLS-SEM, or partial least squares structural equation modelling, was used to analyse the data using SmartPLS. The empirical findings reveal that while DGT directly and significantly enhances SCP, SCIS and SCE, traditional lean paradigms fail under continuous macro-level disruptions. Specifically, SCIS and SCE exhibited negative direct impacts on performance, demonstrating that rigid single-source integration and hyper-efficiency (e.g., zero safety stock) transform into systemic vulnerabilities during continuous macroeconomic crises. Furthermore, while high market dynamism amplifies the value of digital tools in fostering integration, SCR was found to negatively moderate the DGT-SCP relationship. This novel finding exposes a critical "resource allocation trade-off" in capital-constrained environments, where attempting to simultaneously fund expensive digital infrastructures and heavy physical resilience buffers drains working capital and diminishes optimal performance. The study concludes that manufacturing executives in emerging economies must pivot from absolute lean optimization to agile adaptability by strategically de-integrating and carefully balancing technological investments with moderate physical buffers to ensure operational survival.