Developing Supply Chain Capabilities Through Digitalization and Viability for Controlling the Ripple Effect

Abstract

The COVID-19 pandemic affected all industries and presented manufacturing firms with enormous challenges, with considerable changes in consumer demand for goods and services. Supply chain management disruption caused by the COVID-19 outbreak resulted in several socio-economic roadblocks. The slow propagation of disruption risk results in a ripple effect along the entire chain. The lack of resilience and risk management capability is the prime cause, attributed to the unavailability of digital resources, skills, and knowledge. The main objective of this article is to develop supply chain capability for disruption risk management and supply chain resilience for competitive gain in terms of controlling the ripple effect. The resource-based view approach was used to develop the theoretical structure in this article. Supply chain digitalization and viability provide necessary resources to develop the capability for managing risk and resilience to tackle the impact of disruptions due to pandemics, war, recession, and other such massive challenges on the supply chain. Seven hypotheses were proposed and evaluated for relevance using structural equation modeling (SEM). In total, 199 valid responses to a survey on SEM were gathered and examined using the AMOS V-21 software. Our research findings supported all the proposed hypotheses, thereby generating positive theoretical evidence for practitioners to digitalize their supply chain for enhanced supply chain capabilities and effective control of the ripple effect.