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The Impact of Digital Transformation on Supply Chain Procurement for Creating Competitive Advantage: An Empirical Study

Author

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  • Mahmoud Abdulhadi Alabdali

    (Business Administration Department, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 22254, Saudi Arabia)

  • Mohammad Asif Salam

    (Business Administration Department, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 22254, Saudi Arabia)

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.

Suggested Citation

  • Mahmoud Abdulhadi Alabdali & Mohammad Asif Salam, 2022. "The Impact of Digital Transformation on Supply Chain Procurement for Creating Competitive Advantage: An Empirical Study," Sustainability, MDPI, vol. 14(19), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12269-:d:926959
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    2. Areej Althabatah & Mohammed Yaqot & Brenno Menezes & Laoucine Kerbache, 2023. "Transformative Procurement Trends: Integrating Industry 4.0 Technologies for Enhanced Procurement Processes," Logistics, MDPI, vol. 7(3), pages 1-40, September.
    3. Jing-Yan Ma & Lei Shi & Tae-Won Kang, 2022. "The Effect of Digital Transformation on the Pharmaceutical Sustainable Supply Chain Performance: The Mediating Role of Information Sharing and Traceability Using Structural Equation Modeling," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    4. Guan Luo & Carlos Serrão & Decui Liang & Yang Zhou, 2023. "A Relevance-Based Technology–Organisation–Environment Model of Critical Success Factors for Digital Procurement Adoption in Chinese Construction Companies," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    5. Amir Hossein Sheikh Azadi & Vahid Shamsi Nesary & Omid Kebriyaii & Mohammad Khalilzadeh & Jurgita Antucheviciene, 2023. "Design of a Green Supply Chain Based on the Kano Model Considering Pricing," Sustainability, MDPI, vol. 15(17), pages 1-20, August.

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