Bridging Collaboration and Sustainability: The Role of Digital Strategy at the Organizational Level

ABSTRACT Supply chain management research indicates that collaborations should be explored from both the demand and supply perspectives. To accomplish this, the present paper investigates the relations among collaborative performance management, digital strategy, and sustainability performance in the Finnish construction industry. The first objective of this paper is to provide evidence of the importance of collaborative performance management in enhancing sustainability performance within strategic collaborations. The second objective is to extend this stream of research by examining the role played by digital strategy in mediating the effects of collaborative performance management on sustainability performance. An in‐depth understanding of how collaborative performance management and digital strategy influence sustainable supply chain management is crucial when it comes to developing a comprehensive view of this complex area. To address these objectives, this paper utilizes quantitative data collected from construction companies based in Finland. The findings reveal a positive direct association between sustainability performance and collaborative performance management with suppliers, whereas the direct connection between sustainability performance and collaborative performance management with customers is nonsignificant. Moreover, the findings indicate that digital strategy acts as a mediator in the relation between collaborative performance management with customers and sustainability performance. Interestingly, digital technologies do not serve as a mediator in the relation between collaborative performance management with suppliers and sustainability performance.