The Impact of Digital Transformation on Supply Chain Procurement for Creating Competitive Advantage: An Empirical Study

Mahmoud Abdulhadi Alabdali () and Mohammad Asif Salam
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Mahmoud Abdulhadi Alabdali: Business Administration Department, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 22254, Saudi Arabia
Mohammad Asif Salam: Business Administration Department, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 22254, Saudi Arabia

Sustainability, 2022, vol. 14, issue 19, 1-17

Abstract: This study examined the impact of digital transformation (DT) on supply chain procurement (SCP) for the creation of competitive advantage (CAD). This study adopted a quantitative approach using a survey administered to 221 supply chain (SC) professionals through the professional networking website LinkedIn. The conceptual model was evaluated with the partial least squares-based structural equation model (PLS-SEM) using SmartPLS. The findings showed that DT has significant positive impacts on SCP and CAD, and that SCP has a significant positive impact on CAD. Supply chain procurement plays a significant mediating role in the relationship between DT and CAD. The findings are useful for decision-makers investing in digitally modernising their SC processes. The study recommends starting the DT of an SC with procurement, as procurement is a complex process involving a wide range of internal and external stakeholders. The results show that digital procurement may be an SC game changer in a competitive market. The study provides initial guidelines for a transition from traditional to smart procurement (procurement 4.0). Despite the prevalence of studies on SCP, there is a lack of empirical evidence on how DT of procurement functions can lead to sustainable CAD.

Keywords: digital transformation; supply chain procurement; competitive advantage; procurement 4.0; PLS-SEM (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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