Role of flexible work arrangement and knowledge management on supply chain performance: the mediating of employee productivity and moderating of digital transformation

Purpose This study assesses the significance of flexible work arrangements (FWAs) and knowledge management (KM) on supply chain performance (SCP) by investigating the mediating effect of employee productivity (EP) in the context of digital transformation (DT). Additionally, determine the effect of moderation of DT on the connection among FWA, KM and EP. Encourage organizations to strengthen their use of DT, FWA and KM to boost EP and increase SCP. Design/methodology/approach The practical methodology adopted for this research relies on primary data gathered through questionnaires. There were 489 valid responses from the research sample. The study's target audience consists of medium- and senior-level business managers of enterprises operating in the food and pharmaceutical sector in Vietnam. To analyze the structural associations, this paper adopts a maximum likelihood estimate approach for structural model analysis. Findings From the research, FWA, KM and DT have an optimistic positive impact on EP, which helps organizations achieve SCP. EP mediates the connection between FWA and SCP, and KM and SCP, while DT moderates the effects of FWA and KM on EP. Efficiently utilizing FWA, KM and DT improves EP and SCP for organizations. Practical implications This paper facilitates businesses gain the significance of FWA, KM and DT. Based on this, enterprises will use KM efficiency and FWA to take advantage of DT to create EP and achieve SCP. Originality/value The available research lacks empirical studies on how EP mediates the association between FWA, KM and EP. Furthermore, the moderating effect of DT in this connection is unclear. In today's rapid technology environment, these findings are useful insights for senior managers, emphasizing the worth of FWA, KM and DT in improving EP and contributing to SCP.