Leveraging digital technologies for operational excellence in pharmaceutical sourcing: a dynamic capabilities perspective

Purpose This study explores the strategic integration of digital technologies in pharmaceutical sourcing to enhance operational excellence. It investigates how digital sourcing, empowered by digital technologies, develops traceability, financial flexibility and security capabilities, addressing the dynamic challenges in the pharmaceutical supply chain. Design/methodology/approach The study employs a survey approach; a self-made questionnaire was distributed, collecting data from 374 professionals in the Indian pharmaceutical industry. Using structural equation modeling, the study tests hypotheses derived from the dynamic capability view (DCV) framework, focusing on the impact of digital technologies on pharmaceutical sourcing. Findings The results reveal that digital technologies significantly enhance traceability, financial flexibility and security within pharmaceutical sourcing. These capabilities impact digital sourcing, suggesting that digital technologies facilitate operational excellence by enabling better risk management, cost optimization and supply chain resilience. Industry dynamism moderates the association between these capabilities and digital sourcing, highlighting the importance of adaptability in a rapidly changing market. Originality/value This research contributes to the supply chain management literature by providing empirical evidence on the role of digital technologies in transforming pharmaceutical sourcing. It extends the DCV by detailing how digitalization acts as a strategic resource. It offers a nuanced understanding of its impact on operational excellence in a highly regulated and complex industry. The study underscores the strategic value of digital sourcing in navigating the challenges of the pharmaceutical supply chain, offering insights for academics, practitioners and policymakers aiming to leverage digital transformation for competitive advantage.