When digital transformation meets supply chain needs in emerging markets: contributions for social and economic performance

Abstract

Purpose

Supply chains are increasingly incorporating social perspectives into their activities. It is often argued that social initiatives in supply chain management (SCM) are a response to external pressures. However, it is still undetermined whether these initiatives can improve economic performance. Additionally, it is proposed that digital transformation in supply chains, also described as Smart Supply Chain, can support social performance. Therefore, this study aims to analyze the association between digital transformation, social performance in SCM and economic performance.

Design/methodology/approach

The study is based on a survey of 473 companies in Brazil, a country where social needs create high pressures on companies to respond to the country’s challenges. The data collected underwent testing using ordinary least squares regression and bootstrapping techniques to examine the mediation effects between Smart Supply Chain, social performance and economic performance.

Findings

The findings indicate that digital transformation supports social performance. Additionally, adopting social initiatives helps to increase firm performance in the context of an emerging economy, while social initiatives mediate between digital transformation and firm performance.

Originality/value

This paper provides a new perspective on the social side of supply chains by demonstrating the close relationship between digital transformation and social engagement initiatives. It argues that aligning digital transformation strategies and technologies with social performance is crucial for companies to establish stronger connections with stakeholders.