Digital technology and its application in supply chain management: new evidence from China's economy

Abstract

The purpose of this article is to investigate the influence that practices using information technology (IT) have on the development of a competitive advantage across the supply chain. An organization has a competitive advantage when it has qualities that give the required foundations for it to separate itself from other organizations that are also in its industry. Pressure is applied to the corporate environment as a result of competition and ongoing changes, such as the introduction of new products and technical advancements, the decline of product lifestyles, and the proliferation of products. In order to maintain a competitive edge and achieve financial success in business, organizations are necessary for responding to changes in the market. Through the use of supply chain markets, companies are able to react quickly to unforeseen shifts in the market, and these shifts may be turned into lucrative business possibilities. One of the most significant things that firms can do to assist themselves is make use of information technology to improve their supply chain management agility. From March 2021 through January 2022, the area of China will have a total sample size of 247 persons fill out a questionnaire as part of the data collection process. In each and every questionnaire, the measurements were taken using a Likert scale with five points. The partial least square-structural equation modeling (PLS-SEM) approach is used to the causal model in order to assess the model's reliability and validity. This technique is used to evaluate the causal model. The findings indicate that information technology has a favorable impact on the adaptability of supply chain management systems. In addition, the findings that were collected have shown that there are four factors that influence the SCM systems. These factors are the IT skills and knowledge, the integration of IT-based systems, the IT infrastructure, and the design of global position system and geographic information systems. In addition, this research offers practitioners recommendations for implementing digital technology for supply chain management and building suitable business strategies at various stages of digitalization.

Keywords: China; Information technology; PLS-SEM; Supply chain management.