The dynamic interplay of knowledge management, innovation and learning capabilities in digital supply chain adoption: a mediation-moderation model

Purpose The rapid global changes we are witnessing pose a pressing challenge that necessitates reevaluating conventional supply chain practices. Consequently, the integration of digital technologies into supply chain operations, often referred to as digital supply chain (DSC), has emerged as a strategic shift that aims to empower organizations to proactively seize new opportunities rather than being caught off guard by unforeseen disruptions arising from economic volatility, global pandemics and regional conflicts. Thus, this study embraces a knowledge-centric approach to explore the direct and indirect impact of knowledge management, innovation and learning capabilities on DSC adoption in an emerging economy context. Furthermore, it aims to shed light on the moderating role of environmental dynamism in this intricate interplay. Design/methodology/approach Employing a cross-sectional survey, the research data were collected from 354 managers representing Egyptian manufacturing and service firms utilizing a structured questionnaire. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings The results unveiled that knowledge management capability (KMC) has the highest path coefficient value among all endogenous variables. It accounts for a significant portion of the variance in innovation and learning capabilities, which play pivotal roles in adopting DSC. Notably, learning capability appears to exert a more powerful influence on DSC adoption than innovation capability through direct and mediating effects. Furthermore, the findings underscore the moderating effect of environmental dynamism on the relationship between learning capability and DSC adoption. However, this moderating role is not observed in the link between innovation capability and DSC adoption. Practical implications There is a growing trend among firms to adopt DSC in response to significant environmental shifts. This study offers valuable insights for managers and policymakers, providing them with a deeper understanding of the DSC adoption process. The study’s findings assist in identifying crucial factors that boost DSC adoption and offer guidance on successfully leveraging digital technologies for managing supply chain practices. Moreover, the study offers stimulating directions for future DSC research directions. Originality/value The study contributes to the existing literature by expanding our understanding of the adoption of DSC by utilizing knowledge, innovation and learning capabilities within the context of emerging economies.