Integrating Industry 5.0 and Smart Supply Chains: A Moderated Serial Mediation Model of Digital Transformation for Sustainable Performance

ABSTRACT As digital transformation accelerates global interconnectedness, firms increasingly embed digital technologies into their strategies to enhance sustainable competitive performance (SCP). Yet, despite this integration, the digitalization of manufacturing and supply chains remains uneven, raising concerns about long‐term sustainability. To address this challenge, this study develops and empirically tests a moderated serial mediation model that examines how base digital technologies, digital transformation, and digital twins drive digital transformation strategy (DTS) and, in turn, improve sustainable outcomes. Survey data from 423 respondents across diverse industries were analyzed using PLS‐SEM to test direct, mediation, serial mediation, and moderation effects. The results show that the DTS explains 47.2% of the variance ( R 2 = 0.472), indicating a substantial level of predictive accuracy. Supply chain information exchange capability (SCIEC) and supply chain responsiveness (SCR) demonstrate moderate explanatory power, with R 2 values of 0.312 and 0.267, respectively. SCP is explained at 41.7% ( R 2 = 0.417), reflecting a strong contribution of the predictors. This study contributes to theory by integrating digital transformation, supply chain strategy, and sustainability in a unified framework. It also provides actionable insights for managers on leveraging digital technologies and twin‐enabled supply chains to achieve not only a competitive advantage but also environmentally sustainable business performance.