Enhancing Business Performance Through Digital Transformation: The Strategic Role of Supply Chain Integration and Operational in Port Management

Digital transformation (DT) has become a strategic priority for global ports; however, many in developing countries, including Indonesia, face challenges in translating digital initiatives into measurable business performance (BP). This study examines the impact of DT on BP through the mediating roles of supply chain integration (SCI) and operational performance (OP) within Indonesian ports, using the Dynamic Capabilities Theory (DCT) framework. A quantitative survey of 128 operational managers from state-owned ports was analyzed using partial least squares structural equation modeling. The findings reveal that DT significantly improves SCI and OP, both of which positively influence BP. Moreover, SCI and OP jointly mediate the DT–BP relationship, highlighting that digital technologies create value only when integrated into coordinated processes and operational routines. The study underscores that DT should be managed as a strategic transformation aligning technology, operations, and interorganizational collaboration. For port managers, strengthening digital connectivity across internal and external networks, supported by governance and incentive mechanisms, is essential to enhance visibility, responsiveness, and resilience. Theoretically, this research advances DCT by demonstrating how DT functions as a reconfiguring capability realized through SCI and OP, providing empirical insights from developing-country port contexts.