Digitization, agility, and flexibility: a sequential mediation approach to supply chain performance in the apparel industry

Purpose In a highly competitive environment, apparel manufacturers increasingly pursue supply chain (SC) digitization to enhance operational outcomes. This study aims to examine the impact of SC digitization on SC performance, with particular attention to the distinct and sequential mediating roles of SC flexibility and SC agility. Design/methodology/approach Drawing on the dynamic capabilities framework, survey data from 160 Bangladeshi apparel manufacturers were analysed using partial least squares structural equation modelling. The study evaluates both the direct effects of SC digitization on performance and the indirect pathways operating through SC flexibility and SC agility. Findings Results show that SC digitization exerts a substantial direct effect on SC performance, while the indirect effects through dynamic capabilities are statistically significant but modest in magnitude. SC flexibility functions as an independent mediator, whereas the direct path from SC digitization to SC agility is non-significant. Nevertheless, the serial mediation through SC flexibility and agility is supported, indicating that digitization contributes incrementally to performance through a capability-building sequence. Originality/value This study provides a balanced and evidence-based perspective on how SC digitization translates into performance gains in the apparel sector. By clarifying the relative contributions of flexibility and agility – and acknowledging their limited explanatory power – it offers practical yet measured insights for firms seeking to strengthen operational capabilities through digital initiatives.