Digital transformation and supply chain competitiveness: Evidence of dynamic capabilities from an emerging economy

The manufacturing firms are trying to attain digitalization of operations and supply chains in the fast changing technological era. Digital transformation was more agile and efficient. However, the issue of how and why digital transformation is going to create a sustained competitive advantage is a question. The survey was carried out in the form of a quantitative survey among the managers of 326 Jordanian manufacturing firms, which were involved in digital projects. SEM and AMOS were used to test the hypotheses. The results illustrate that the digital transformation has positive and significant effects on the competitive advantage of the supply chains. The mediation analysis showed that the dynamic capabilities are important to the competitive advantage of the digital transformation. The results suggest that digital transformation is a strategic enabler that enhances the dynamic capabilities of a company, which is later translated into the high-level of supply chain performance. Digitalization is an enabler of building of capability, according to the Dynamic Capabilities Theory. These increased capabilities, in turn, enable firms to attain and maintain competitive advantages in the form of faster delivery, increased flexibility, and reduced costs. The research builds on theoretical knowledge by introducing digital transformation to the capability-based perspective on competitiveness, in which the value of digital investments is achieved by the capabilities of organizations and managers to a large extent.