The role of managerial capability on operational performance through supply chain digitalization and adaptability

Changes in the global business environment constrain companies to adopt digital technology to enhance their performance and competitiveness. This study aims to analyze the role of managerial capability on operational performance through supply chain digitalization and supply chain adaptability in manufacturing companies in Indonesia. Managerial capability is a key factor that enables organizations to design effective strategies, allocate resources efficiently, and foster internal collaboration and external partnerships. The study has distributed questionnaires to 117 respondents from various middle and top managerial functions within the manufacturing company. The questionnaire was designed using a five-point Likert scale and distributed offline and online using a Google Form link. Data analysis employed Partial Least Squares – Structural Equation Modeling (PLS-SEM) to examine the outer model and inner model. The results indicate that managerial capability has a significant impact on supply chain digitalization and supply chain adaptability, but does not directly affect operational performance. Instead, the effect of managerial capability on operational performance is mediated by supply chain adaptability and the combination of supply chain digitalization and adaptability. Supply chain digitalization plays a crucial role in enhancing supply chain adaptability, ultimately leading to a positive impact on operational performance. These findings confirm that supply chain digitalization not only increases the speed of information flow and transparency but also strengthens the company's ability to adapt to market dynamics. The practical implications of this research are the need for manufacturing companies to continuously develop managerial competencies that support digital technology investments, strengthen an adaptive organizational culture, and foster synergy between internal and external functions. For academics, this research provides a conceptual contribution in explaining the mediating relationship between managerial capabilities, supply chain digitalization, supply chain adaptability, and operational performance in the era of digital transformation.