E-supply chain coordination and performance impacts: An empirical investigation

ABSTRACT

This study addresses the critical need for coordinating electronic supply chain (E-SC) practices to maximize benefits for manufacturing firms. Despite existing literature, empirical studies have often overlooked the performance implications of such coordination. Using coordination theory, we argue that enhancing business value from E-SC investments requires integrating internal and external E-SC practices. We test three models to evaluate how coordinated practices impact operational and business performance, employing structural equation modeling on survey data from Omani manufacturing firms. The results confirm that effective coordination of internal and external E-SC practices mediates improved performance outcomes. This paper is the first empirical research to explore the mediating role of these coordinated practices in manufacturing contexts, highlighting several implications for the effective deployment and adoption of E-SC practices to achieve superior operational and business performance.

KEYWORDS:

• E-supply chain management
• business and operational performance
• coordination theory
• structural equation modelling
• coordinated adoption

1. Introduction

In today’s hyper-competitive global market, businesses are relentlessly seeking efficient and effective ways to optimize their supply chains. The rise of global networks and relentless technological advancements has forced companies to embrace increasingly integrated and digital approaches. E-SC has emerged as a critical weapon in this battle for competitive advantage. E-SC, or electronic and internet-based supply chain activities and transactions, enables firms to the strategic planning and execution of supply chain operations, logistics, and value-added activities of business enterprises. Both internal and external supply chain operations use these technologies (Aloqool et al., 2022; Alzoubi & Yanamandra, 2020), by integrating firms’ internal supply chain processes with suppliers, distributors, and customers.

While numerous studies have established the positive link between E-SC adoption and performance (Anca, 2019; Asamoah et al., 2021; Ayoub et al., 2017; Barrad & Valverde, 2020; Beaulieu & Bentahar, 2021; Bruque Camara et al., 2015), a crucial gap remains: we lack a clear understanding of how these practices impact performance. For example, despite the good contributions of the existing E-SC studies (see Table 1 for examples) existing empirical supply chain literature still shows that E-SC practices and performance relationships have varied empirical outcomes (Akyuz & Rehan, 2009; Al-Ansi & Al-Ansi, 2023; Aloqool et al., 2022). Such conflicting empirical results on the independent effects of E-SC illustrate our limited understanding about this area and underlining the difficulties of combining these two aspects, which is a critical gap that needs to be addressed. Additionally, existing research largely focuses on independent effects or overlooks the interconnectedness of internal and external E-SC initiatives. The current management and research tasks involve exploring the interdependencies among various E-SC practices and their ability to achieve favourable business outcomes by investigating new models of how these factors might be interrelated. We recognize the complexity of multi-party supply chains (Chatterjee & Mohanty, 2024). Simply adopting E-SC practices in isolation may not suffice. This research introduces the concept of coordinated mediation, proposing that the sequencing and collaboration among internal and external initiatives plays a critical role in achieving optimal performance. By investigating these mediating effects and the importance of coordination, we offer valuable insights for managers to develop and implement more effective E-SC strategies, ultimately propelling their organizations towards success in the global marketplace. Accordingly, the current study delves deeper, venturing beyond correlations to explore the mediating mechanisms through which internal and external E-SC practices influence both operational and business performance.

Table 1. Example of the significant work done on E-SC by previous researchers.

Study	Journal	E-SC Internal & External	Main contributions & findings
Barratt, M., & Barratt, R. (2011)	Journal of Operations Management	Several propositions have been put up on the distinct roles played by internal and external factors.	This study yields many contributions: (1) It shows how information flows across a large supply chain via multiple external and internal linkages; (2) It suggests whether information flows, either individually or compositely, improve operational performance; (3) It illuminates the firm’s previous ‘black box’ in terms of how external information travels in, though, and out of a firm; and (4) It identifies specific roles and ramifications of different types of.
Wu, L., & Chuang, C. H. (2010)	Decision support systems	The technical framework is characterized by the inclusion of a single determinant, namely innovation. The dissemination of e-SCM encompasses both internal diffusion inside an organization’s functional units and exterior dispersion across a multitude of inter-organizational trade partners.	This study presents an innovative research framework that examines the connections between external factors, the dissemination of stage-based e-SCM, and company performance. Empirical research has yielded data that establish the relative impact of external antecedents on the various phases of diffusion, which subsequently influence business performance.
Wong et al. (2013)	International Journal of Production Economics	The study aims to enhance the understanding of the impacts of internal and external integration on product innovation, an area that has been relatively underexplored in prior research. The sustainability of internal and external exploitation and exploration processes is posited to stem from their capacity to mitigate the danger of obsolescence.	The study suggests that it is essential for a company to possess the ability to produce, acquire, and integrate both internal and external sources.
Gilaninia, S., Ganjinia, H., & Mahdikhanmahaleh, B. A. (2013)	Arabian Journal of Business and Management Review	The findings are shown in a probability-impact matrix, which differentiates between supply chain hazards of both internal and external nature.	Analysis shows no substantial difference between internal and external risk probability. However, external supply chain risks affect the supply chain more than internal ones. The average corporate performance will increase with level.
Akyuz and Rehan (2009)	International Journal of Production Research	Study about integration with legacy systems, ERP timing and presence, BPR needs of internal and external business processes, and business intelligence/decision support needs when forming an e-supply chain. The article indicates that fully connected web-based supply chains have complicated internal and external activities and need ERP system integration.	Creating an e-supply chain and web-based collaborative strategic management are significantly harder than implementing an ERP. Most of the problems are organizational and administrative, with technological ones include heterogeneous system network connection and web-based security. In today’s digital economy, companies who can overcome these web-based integration hurdles will succeed.
Alshurideh et al. (2023)	Uncertain Supply Chain Management	To increase the performance of e-supply chains and effectively manage supply chain risks, it is essential for communities of practice to develop information security policies both internally and externally. This will aid in making informed and improved information security choices within the framework of esupply chain.	The emergence of the e-supply chain necessitates the implementation of security measures in order to provide favourable outcomes for consumers and ensure the efficient functioning of organizations.
Adel and Younis (2021)	International Journal of Emerging Markets	This research examined the dissemination of banking supply chain management (SCM) in relation to its internal and external electronic SCM (eSCM) diffusion, while excluding other concurrent indicators of sustainable SCM practices.	The authors propose that more empirical studies should be conducted to examine the correlation between topic and other factors such as sustainable performance. Furthermore, they advocate exploring its association with other entrepreneurial dimensions, such as entrepreneurial experience or gender.

As to the best of our knowledge, no empirical studies have examined the mediations of E-SC practices and their performance effects. In particular, no clear framework exists for assessing how mediated implementation and coordination of internal and external E-SC activities affects business and operational performance which will be the focus of our current study. This study suggests that achieving good outcomes from E-SC implementation requires the coordination and sequential/mediated implementation of internal and external E-SC practices. That is, in certain cases, internal E-SC practices are necessary for effective adoption of external E-SC to obtain good performance results, while in others, the opposite is true.

Furthermore, drawing upon coordination theory, we posit that different types of coordination mechanisms and strategies may be optimal depending on the specific E-SC initiatives and environmental context. For example, reciprocal exchange mechanisms may be most suitable for facilitating collaboration between firms and supply chain partners with similar goals and capabilities, while hierarchical control mechanisms may be necessary when dealing with power imbalances or conflicting objectives within the supply chain (Frazier & Bailey, 1999). Optimizing performance necessitates a coordinated approach that addresses the sequencing and collaborative execution of internal and external initiatives. This resonates with recent developments in supply chain coordination theory (Choi & Choi, 2022; R. Li et al., 2023), which emphasizes the importance of aligning individual actions and goals within the broader network to achieve collective success. By choosing the appropriate coordination strategy for each stage of the E-SC implementation process, organizations can mitigate potential conflicts, enhance information sharing, and ultimately maximize the performance benefits of coordinated mediation. The choice of the coordination theory is essential in elucidating the complex dynamics at play within a supply chain (Bhattacharjee & Mohanty, 2012; Bhattacharjee et al., 2015; Chatterjee & Mohanty, 2024). Coordination theories provide frameworks for understanding how independent actors collaborate and achieve common goals. By using the coordination theory, we can gain a better understanding of the specific mechanisms through which internal and external E-SC practices interact and ultimately contribute to performance.

The motivation behind our approach is that mediations can provide advantages of pooling resources from many sides and reducing the shared overall burden of enhancing performance among several parties of the supply chain. However, as the number of participants gets higher, changes of having conflicting interest among supply chain members is expected to increase and, thus coordination of mediations is necessary to achieve a common agreement on how to move toward a better performance. Coordinated mediation can overcome several crucial challenges that might exist in multiparty mediation processes. Such challenges might include identifying the sequence of numerous coordination activities involved in the mediation processes and achieving proper cooperation among members of the mediation processes (Vuković, 2012).

By combining theoretical rigor with practical relevance, this research empowers practitioners to unlock the full potential of E-SC and drive sustainable performance improvements within their organizations. This research offers a practical roadmap for maximizing the value of E-SC initiatives, helping practitioners unlock significant performance improvements within their supply chains. By understanding how internal and external E-SC practices influence performance sequentially and in partnership, managers can craft targeted strategies for optimal implementation. Our proposed models not only provide actionable insights, but also address the real-world challenges faced by practitioners by recognizing the complexities of coordinating multi-party supply chains and navigating conflicting interests. Such approach is expected to lead to smoother implementation and maximizing the return on investment from E-SC projects.

To complete our investigation, survey data were collected from Omani manufacturing firms. Oman like several other developing countries has not received much attention in the Operations and Supply Chain Management literature. Previous E-SC studies have focused on the contexts of developed and Western countries, and on Chins. E-SC is particularly important to enhance the attractiveness and performance of Omani manufacturing companies, and enable them to enter into the global networks of large multi-national companies where great attention has been given to development of such competitive practises by the Omani companies during the last decade. Our findings in the Omani context, when compared and added to findings of other studies conducted in other contexts, can provide more generalizable conclusions about the relationship between E-SC practices and performance.

To achieve the objectives of this research, the next section provides some general theoretical background on E-SC practices and performance which helps in formulating our research hypotheses. In Sections 3 and 4, a discussion on the research philosophy and methodology including instrument development and data collection is provided. Results of data analysis are then presented in Section 5, which is followed by the research general conclusions and discussion on research findings in Section 6. In Section 7, research theoretical and practical implications are highlighted. Finally, research limitations and future research directions areas are provided in Section 9.

2. Literature review and hypotheses development

The implementation of E-SC systems has had a significant and far-reaching influence on the supply chains of several organizations, as well as their overall performance. A lot of research was done to explore how E-SC initiatives are related to firm performance but empirical findings on these relationships are inconclusive.

The objectives of this research are achieved by proposing and empirically investigating three different models (see Figures 1–3). The first model examines the independent, separate, effects of two types of E-SC practices (i.e. internal and external E-SC practices) on business and operational performance. These independent relationship testing have shown various outcomes (Hrouga, 2023). However, the second and third models illustrate E-SC implementation sequentially. The second model claims that external E-SC practices mediate the relationship between internal E-SC and performance, whereas the third claims that internal E-SC practices mediate the relationship between external E-SC and performance. By using the proposed approach, this study provides different insights on how E-SC coordination improves performance. The following sections discuss the literature on the relationship between E-SC practices and performance, a discussion which aids in clarifying the fundamental hypotheses of our study.

Figure 1. Model 1.

Figure 2. Model 2.

Figure 3. Model 3.

2.1. E-supply chain: an overview of the definition and examples of E-SC practices

Supply chain is a network of operational and trading partners that share financial and physical resources, information, goods and services (Fugate et al., 2006). These flows must be managed through synergistic connections between manufacturers, customers, suppliers, and distributors. Using E-SC for managing and coordinating supply chain activities is becoming a necessity to get the desired performance results (Bi, 2017; Z. Liu et al., 2016; Reis et al., 2014).

The concept of the E-SC refers to the digitized and interconnected processes involved in the procurement, production, distribution, and sales of goods or services (Antoni & Akbar, 2019). This concept is also related to what is so-called digital supply chain (Haddud & Khare, 2020; Hrouga, 2023; Nasiri et al., 2020; Rasool et al., 2022). E-SC aims to integrate the whole procurement, manufacture, storage, transportation, and distribution operations (Prajapati et al., 2022). It leverages technology and digital platforms to streamline and optimize these activities while improving visibility, efficiency, and collaboration across the supply chain network. In general, the E-SC encompasses various electronic systems such as electronic data interchange (EDI), enterprise resource planning (ERP), customer relationship management (CRM), e-supplier and e-customer selection and management, inventory management software, and online marketplace platforms (Al-Faouri, 2023). By integrating these technologies into a coherent system, organizations can automate routine tasks, track inventory levels in real-time, enhance demand forecasting accuracy, accelerate order fulfilment cycles, ensure on-time delivery, and provide customers with transparency throughout the supply chain journey. Implementing an effective E-SC strategy requires seamless integration of different digital tools with existing business processes while ensuring data security and privacy. This concept has become increasingly important in today’s globalized business landscape where agility, flexibility, and responsiveness are crucial for sustaining competitive advantage.

E-SC involves flow of numerous transactions resources across various levels of internal and external operations within and outside a firm (Barrad & Valverde, 2020). Thus, internal and external domains exist for E-SC activities. While external or inter-organizational E-SC involves conducing E-SC activities with suppliers and customers, internal or intra-organizational E-SC refers to E-SC transactions within firms’ internal boundaries. Such digitized and electronic modes of conducing various supply chain activities can provide firms with better chances for quicker response to market changes, exchange data and obtain the required materials more efficiently (Reis et al., 2014). In recent years, technologically advanced monitoring systems have transformed the E-SC sector and increased the level of transparency among supply chain partners. Manufacturers may monitor their goods’ life cycles in real time using these electronic devices (Anca, 2019; Wamba & Queiroz, 2020). E-suppliers, for example, play a crucial role in the external E-SC activities by offering products or services through online platforms, enabling businesses with new sources of materials or providing locate suppliers with better chances of potentially accessing a global network of providers (Garg, 2021). On the other hand, e-customers which is also another critical element of E-SC have been empowered by digital platforms. It allows customers to easily and electronically browse catalogues, compare prices, place orders, track deliveries, and provide feedback online. This has revolutionized the traditional purchasing process by providing convenience and choice for customers who can now access a wide range of products from anywhere at any time (Avania & Widodo, 2022). Overall, embracing these e-commerce elements of E-SC is essential for organizations striving to stay competitive in the rapidly evolving digital landscape.

2.2. Internal E-SC and performance

E-SC is often seen in organizations that extensively depend on electronic methods for their supply chain operations (Pant et al., 2003). An internal E-SC pertains to the internal network of processes, actions, and resources that are engaged in the sourcing, procurement, management, and distribution of information, components, and other materials and resources inside a business (Akyuz & Rehan, 2009; Siddiqui & Raza, 2015). It involves close collaboration between engineering, procurement, production, logistics, and other critical departments. The process encompasses inventory management to ensure component delivery, vendor quality and cost evaluation, supplier relationships, procurement activity monitoring, and demand anticipation (Agyabeng-Mensah et al., 2020). A well-established internal E-SC may improve departmental communication (W. Yu et al., 2014), reduce procurement costs, improve production productivity and enable quicker response to market changes (Akyuz & Rehan, 2009; G. Li et al., 2020), allowing firms to stay competitive in a fast-changing industry. Cost reduction, efficient product delivery, customer satisfaction, and quick market adaptability are also among the benefits reported for the proper adoption of internal E-SC (Alzoubi & Yanamandra, 2020; Saragih et al., 2020). More advanced technological options, such as the ERP software or automated inventory management systems, can also improve tracking, scheduling, and forecasting (Nasiri et al., 2020). The combination of these technologies with trained personnel who understand each level of the supply chain may smooth and optimize operational procedures, leading to increase customer satisfaction and increase scalability for future expansion (Phan et al., 2019). Ongoing evaluation of the current E-SC processes and optimizing the internal E-SC may be a valuable strategy for enhancing company expansion and achieving operational efficiencies that enhance overall financial performance. Based on the above literature, the following hypothesis is proposed:

H₁:

The internal E-SC is positively related to performance of a firm.

H_1a:

The internal E-SC is positively related to business performance of a firm.

H_1b:

The internal E-SC is positively related to Operational performance of a firm.

2.3. External E-SC and performance

Unlike the internal E-SC, external E-SC makes supply chain operations more complicated. The external E-SC uses electronic ways to engage with consumers, distributors, vendors, suppliers, contractors and other supply chain partners beyond the firm’s borders (Siddiqui & Raza, 2015). Material, component, and information production and distribution depend on these entities (Wu & Chuang, 2010). E-customer and e-supplier selection and management are critical elements of external E-SC and they may affect all supply chain operations from raw material acquisition to customer delivery. These activities can impact order placement and delivery, product quality, prices, and regulatory compliance (Tse et al., 2016). Strategically coordinated supply chain management may help firms achieve several financial and non-financial performance indicators. These indicators include prompt customer response, market adaption, product development innovation, adherence to product design standards and requirements, and timely product delivery (Wu & Chiu, 2018). Existing literature recognizes how important E-SC is for supply chain performance (Chaffey, 2007; Turban et al., 2015) and for operational and organizational excellence (Green et al., 2012; Wu & Chiu, 2018). Several benefits were reported from the proper adoption of the external E-SC. For example, monitoring and optimizing the external E-SC may improve productivity, speed-to-market, profitability, and customer satisfaction (Lockamy, 2017). These innovations give firms real-time supplier performance, delivery schedule, and production efficiency data (Aloqool et al., 2022; H. F. Lin, 2014). Manage external supply chain activities electronically can improve internal and external operations, increase transparency, and reduce lead times. By reducing supply chain costs from procurement to product delivery, such external initiatives can boost business performance. Well-planned external E-SC minimize costs and improve operational efficiency (Moshood et al., 2021; Sharma et al., 2022). Additionally, enhanced customer satisfaction (M. Zhang & Li, 2012), enhanced supplier reliability and responsiveness (Tarigan et al., 2021), better understanding of market fluctuations, ability to adapt to technological changes, compliance with industry regulations, and mitigation to risk factors like supplier bankruptcy or non-compliance are a mong the most important benefits of effective external E-SC collaboration (Salamai et al., 2019). However, achieving these benefits of external E-SC needs a thorough understanding of internal processes and external elements outside a company’s control. Firms must efficiently manage external E-SC to maximize resource efficiency, reduce supply chain risks, maintain product quality and achieve better overall business performance. So, based on the above literature the following hypotheses are proposed:

H₂:

The external E-SC is positively related to performance of a firm.

H_2a:

The external E-SC is positively related to business performance of a firm.

H_2b:

The external E-SC is positively related to operational performance of a firm.

2.4. Coordination and cooperation theories

Coordination and cooperation are fundamental principles in the realm of E-SC and they have been focal points in supply chain theory due to their reported positive influence on company performance (Akam et al., 2023). Coordinated implementation and decision-making refers to separated entities that work together for implementation decision alignment in order to improve overall performance of all participants. Such coordination has been a critical area of early economic theories that differentiated firms and their hierarchies as forms of coordination. In the context of supply chain management and E-SC researches, the related terms cooperation, coordination, and collaboration are often used interchangeably without clearly distinguishing them from each other. This is because coordination pertains to the synchronisation of activity among various stakeholders within a supply chain with the aim of attaining shared objectives. Collaboration, on the other hand, is considered a more sophisticated manifestation of coordination, when individuals or entities engage in joint efforts to exchange knowledge, assets, resources and specialised skills with the aim of generating novel value (Gieseke, 2019). While the research areas of the coordination theory encompass several domains such as team coordination, organizational coordination, supply chain coordination, and disaster coordination, the scope of research of the collaboration theory, on the other hand, encompasses several aspects such as collaboration within teams, learning processes, and communities, among others.

Coordination theory investigates the mechanisms by which individuals and collectives collaborate in order to attain shared objectives (Ahmed et al., 2020). This theory assesses the management of dependencies between activities (Crowston, 1997) and it focuses on the various procedures and mechanisms employed by individuals to exchange knowledge, reach consensus, and engage in collective action. Effective coordination is necessary for all forms of group endeavours, ranging from rudimentary activities to intricate undertakings like constructing a bridge or innovating a novel product (Pershina et al., 2019). Coordination refers to a more direct, active and interactive cooperation between several separate entities, and the presence of inadequate coordination results in process losses. The objective of coordination theory is to comprehend the mechanisms by which actors can effectively collaborate and mitigate challenges such as redundancy or impasses (Gass et al., 2009). The fundamental ideas encompassed in this context are dependency, uncertainty, common ground, and coordinating mechanisms (Malone & Crowston, 1994). The coordination theory mechanism identified as essential for achieving effective transformed action encompass information sharing, actor participation in decision-making processes, and proactive planning (Stolze et al., 2021). Various coordination mechanisms, such as standardization, planning, and mutual adjustment, have been identified as effective means of managing dependencies (Mintzberg, 1979). The establishment of effective coordination is contingent upon the presence of a collective comprehension and mutual agreement among individuals (Olson & Olson, 2000).

The theory of collaboration examines the mechanisms by which individuals can efficiently cooperate within group settings and collaboration is been defined as a form of coordination that exhibits a notable level of collaboration (Melander & Pazirandeh, 2019). Collaboration is established by the reciprocal involvement, collective endeavour, and communal knowledge base. Technology plays a pivotal role in fostering collaboration by promoting effective communication and establishing a solid foundation for cooperation. By that, collaborative coordination implies a higher degree of joint implementation (Bhattacharjee & Mohanty, 2012; Bhattacharjee et al., 2015; Chatterjee & Mohanty, 2024) and can be a good source of achieving outstanding performance and obtaining competitive advantages from the join efforts of internal and external supply chain partners.

2.5. E-SC practices and performance: a coordination theory perspective

The coordination theory examines the diverse methodologies that companies may employ to achieve integration, which enables inter and intra-organizational partners to collaborate effectively in pursuit of mutual goals (Tsiga et al., 2017). It focuses on the implementation of essential tasks and the development of alternative processes in response to the challenges and coordination issues faced by the organization. It further involves identifying the coordination components that can be employed to address organizational issues, taking into account the organizational environment (Tsiga et al., 2017). Successful supply chain coordination requires managing multiple interdependencies. In this fast-changing industry, coordinated E-SC activities are expected to improve communication between global supply chain management and their consumers and distributors. E-SC collaboration has a significant impact on collaborative innovation, supply chain agility, and value co-creation (Yuyan & Liang, 2019). Firms must integrate multiple internal and external supply chain operations to execute optimally (Malone & Crowston, 1994). The availability of electronic modes to manage the ongoing follow of necessary information and other essential resources across internal and external supply chain actors is crucial to these efforts. Compared to traditional supply chain coordination methods, highly coordinated E-SC management offers better cost-efficiency, effective knowledge management, intellectual property protection, and faster information flow screening.

Several studies in operations and supply chain management literature have examined supply chain management issues to explain activity interdependencies (e.g. Hu et al., 2022) using coordination theory (Chen et al., 2020). Some of these studies have explained how electronic technology have facilitated real-time data collecting and supply chain management decision-making. The current study also uses this theory to examine the implications of coordinating internal and external E-SC. Continuous communication and collaboration among internal and external supply chain partners facilitates operational and strategic activities including E-SC implementation (Alshurideh et al., 2023). This collaborative and coordinated approach is expected to improve supply chain (Ghadimi et al., 2019) and organizational performance.

In the realm of e-supply chain, there are several noteworthy case examples that demonstrate the transformative impact of coordinating several digital technologies on traditional supply chain operations and on performance. One such example is Amazon’s use of advanced analytics and artificial intelligence (AI) to optimize inventory management and enable efficient last-mile delivery through proper coordination and collaboration with its supply chain members. Through its sophisticated algorithms, Amazon with its supply chain partners can accurately predict customer demand, thereby reducing stockouts and improving order fulfilment rates (Shaiju, 2023). Additionally, companies like Walmart have leveraged E-SC capabilities to implement just-in-time inventory systems, enabling them to streamline their operations while minimizing wastage and holding costs. The application of E-SC practices extends beyond retail giants, as manufacturing firms like Tesla have successfully implemented real-time tracking systems that provide end-to-end visibility into their supplier network, ensuring timely procurement and production processes (Arunachalam et al., 2018). These examples highlight the crucial role of building highly collaborative and coordinated E-SC competencies in enhancing operational efficiency, reducing costs, and ultimately delivering superior customer satisfaction and improve overall performance across various industries.

Despite the general recognition that external E-SC cooperation with customers and suppliers (Phung et al., 2021) and internal coordination across internal activities (Ralston et al., 2015) may contribute to better organizational performance, limited empirical studies can be found on the coordination between internal and external E-SC and performance. For E-SC to boost performance, the highly interdependencies between internal and external E-SC activities must be managed well in order reduce coordination and operational costs. In the traditional supply chain management, the literature recognizes that internal coordination affects outward cooperation with supply chain participants (Wong et al., 2009). DiMaria et al. (2022), in contrast, found that achieving favourable performance results via internal coordination across internal activities is challenging in the absence of effective coordination with external partners, suppliers, and consumers. This suggests that different E-SC practice groups may have many links. This may also reveal that the relationships of the coordinated internal and external supply chain activities with performance do exist but must be further examined using different analytical frameworks. Thus, our argument that internal and external E-SC mediations and their impacts on performance is supported by prior studies but requires empirical evidences. The coordination approach used in the current study is expected to provide an additional insight on the potential mediation effects that arise from the sequential implementation of different forms of E-SC on organizational performance.

2.6. Mediation roles of E-SC and performance

2.6.1. Mediation role of external E-SC

As more organizations outsource their production processes, the external E-SC is essential for efficiently coordinating internal and external supply chain operations. This synchronization increases supply chain efficiency, cost, and performance (Beaulieu & Bentahar, 2021; Schniederjans et al., 2020; Stank et al., 2001). Effective external E-SC is essential for connecting internal supply chain processes to company success. External E-SC systems that enable stakeholder information exchange empower a company to quickly respond to new market trends and customer demand (Haddud & Khare, 2020). They also help internal supply chain partners meet environmental, labor, and ethical sourcing regulations (Panuparb, 2019; Y. Yu et al., 2021). Additionally, external E-SC can improve internal operational efficiency, risk mitigation, customer happiness, and profitability (Chang et al., 2020; X. Zhang & Liu, 2021).

Supply chain integration requires efficient coordination of supply chain processes. This includes integration of internal business activities and activities of supply chain partner (Peng et al., 2016; Widowati et al., 2022). Highly coordinated integration is crucial to a firm’s supply chain operations (Peng et al., 2016). Integrating external supply chain practices as a mediator between internal supply chain coordination and performance needs additional study (Somjai et al., 2019; Wei et al., 2014). Several researches have examined how external supply chain management integration affects organizational performance (Dzogbewu et al., 2021; Widowati et al., 2022), but none of these have assessed the role of their mediations on performance. Piprani et al. (2020), for example, have explored how internal service skills mediate supply chain integration and performance in small and medium companies, and found that service capabilities strengthened supply chains. Such coordination of E-SC activities requires new skills that emphasize information and resource integration and communication inside the organization and with supply chain partners (Errassafi et al., 2019). External supply chain activities are increasingly recognized as crucial to the efficient execution of internal supply chain activities, but there are few empirical studies that have examined the relationship between internal E-SC and performance, with external E-SC as a mediating factor. This study addresses a literature gap and proposes the following hypotheses:

H₃:

The external E-SC mediates the relationship between internal E-SC and performance of a firm.

H_3a:

The external E-SC mediates the relationship between internal E-SC business performance of a firm.

H_3b:

The external E-SC mediates the relationship between internal E-SC and operational performance of a firm.

2.6.2. Mediation role of internal E-SC

Like the external E-SC, the internal E-SC is critical in obtaining good performance from the adoption of other types of E-SC. Proper information sharing among external partners in the external E-SC depend heavily on availability of real, accurate and reliable information from internal partners. In the traditional supply chain management, internal coordination enables companies and their supply chain to obtain increased operational efficiency, customer happiness, cost reduction, and better performance (Ayoub et al., 2017; Mehdikhani & Valmohammadi, 2019). This can happen by monitoring inventory levels and handling order management in real time using EDI, RFID, and IoT (Khalil et al., 2019). These internal processes help reduce external uncertainties in the supply chain like demand fluctuations and upstream supply chain disruptions. The internal E-SC also provides supply chain demand signals and inventory levels to help match production capacity with customer needs (Asamoah et al., 2021). Supply chain agility and responsiveness increase when internal E-SC is properly implemented, giving companies a competitive edge in the increasingly competitive industry. E-SC can also provide end-to-end visibility for supply chain processes, and enhance communication and collaboration with key vendors (Rawat, 2022). Thus, good internal E-SC use can boost the benefits of external E-SC.

Many empirical investigations have generally demonstrated that the internal supply chain may mediate the performance of the external supply chain. K. P. Liu and Chiu (2021), for example, showed that internal integration of varied supply chain methodologies mediates the relationship between supply chain digitalization and firm performance. Errassafi et al. (2019), also found little evidence for the possible mediation effect of whether internal integration of supply chain practices mediates the relationship between supply network responsiveness and operational performance. These arguments may suggest that internal E-SC practices are essential for effective external E-SC implementation. This coordination should reduce the gap between supply chain domain-specific inter- and intra-organizational members. Accordingly, in order to assess how internal E-SC mediates the external E-SC-performance relationship, the following hypotheses are proposed:

H₄:

The internal E-SC mediates the relationship between external E-SC and performance of a firm.

H_4a:

The internal E-SC mediates the relationship between external E-SC and business performance of a firm.

H_4b:

The internal E-SC mediates the relationship between external E-SC and operational performance of a firm.

3. Research design

When considering the research philosophy underpinning our empirical study on E-SC practices and performance in Omani manufacturing firms, this study adapts the philosophy of positivism and objectivist approach of science (Saunders et al., 2015). This implies a belief in a single, objective reality that can be discovered through scientific methods. This is because it aims to discover the reality and to have a universal and generalizable explanation for the relationships between various types of E-SC practices and performance of in Omani manufacturing firms, as opposed to individual interpretations or subjective experiences. Early research on E-SC mainly followed the subjectivism approach using inductive research methods such as case studies in order to obtain more descriptive information and to gain more preliminary insights in several complex E-SC work-related contexts. The use of the objectivism approach employing deductive research methods such as a large scale survey, however, has increased dramatically and become the dominant approach over the past few years to obtain a more universal understanding of E-SC related issues. Deductive reasoning starts with established theories and hypotheses, then uses data to test and confirm them, aiming for generalizable findings.

Furthermore, considering alternative philosophies can broaden our understanding of the research landscape. Interpretivism, for instance, emphasizes the meaning-making processes within organizations, highlighting the subjective interpretations and social interactions that influence E-SC implementation and outcomes (Bryman & Bell, 2015). While this study adopts a primarily positivist stance, acknowledging and engaging with interpretive perspectives fosters a more nuanced understanding of the complex dynamics at play within Omani manufacturing firms.

Accordingly, and based on the objectives and the context of this research, the study addresses the objectives through a deductive approach. The research is quantitative by nature and involves administration of large-scale cross-sectional survey with large number of respondents from managers of several manufacturing firms. The research strategy and methodology is inclined towards a questionnaire-based survey to obtain a better understanding of the interrelationship between E-SC practices and performance. Thus, by incorporating several elements of the positivism and objectivist perspectives, the research strives to paint a comprehensive picture of the E-SC reality in Omani manufacturing, contributing to a richer understanding of this critical domain. The main research methodology of this research is explained in details in the following section.

4. Research methodology

In this section we explain how different constructs used in this study are measured, how data were collected, different approaches we used to control for bias and to assess the validity and reliability of our constructs.

4.1. Measures of constructs

A questionnaire-based survey was used to collect our date. The survey was mainly developed based on the literature (see references in Table 2) to ensure a high degree of validity. The final version of the survey was slightly modified based on feedbacks of the interviews with five senior managers and CEOs of Omani firms and academic experts’ feedback. This helps ensure high clarity of the survey items and high context validity of the instrument used in this research. The survey included three main sections: information on the respondents and their respective companies, 10 indicators on implementation of E-SC (internal E-SC 4 items and external E-SC 6 items) and 8 indicators on performance (operational performance 4 items and business performance 4 items). A five-point Likert’s scales were used to measure each indicator of E-SC (1 = not considering it; to 5 = carrying it out fully) and performance (1 = not at all; to 5 = very significantly). Our unit of analysis is the individual firm. Targeted managers were asked to evaluate the extent to which their respective company had implemented the listed E-SC practices and initiatives, and the extent to which several aspects of operational and business performance had been affected as a result of their implementation to E-SC. Using the self-perception of managers in measuring organizational performance and different operations and supply chain management practices is not uncommon in the Operations and Supply Chain Management literature (Sarkis et al., 2010).

Table 2. List of items used to measure our constructs, descriptive statistics and measurement properties of the constructs.

Construct/Sources	Items^a	Factorial weight	T-value	Cronbachs α	Composite reliability	AVE
Internal E-SC/ (Lucia-Palacios et al., 2014; Soto-Acosta et al., 2015)	Electronically conducting the following activities:
	Manufacturing activities (InESC1)	0.825^__	^____	0.883	0.889	0.668
	Distribution activities (InESC2)	0.892***	13.33
	Inventory control activistes (InESC3)	0.799***	11.42
	Order processing and fulfulimemt activities (InESC4)	0.747***	10.38
External E-SC/ (Lucia-Palacios et al., 2014; Soto-Acosta et al., 2015; Wu et al., 2003)	Online after-sales service to customers (E-SC1)	0.773^__	^____	.0.950	0.953	0.782
	Responding to customer enquires (E-SC2)	0.913***	12.99
	Assisting customers with their online ordering and solving their problems (E-SC3)	0.976***	14.01
	Facilitating shipping and logistics activities (E-SC4)	0.841***	11.65
	Procurement activities of materials, products or services (E-SC5)	0.788**	8.69
	Online planning and coordination activities with customers and suppliers (E-SC6)	0.983***	14.84
Business Performance/ (Lucia-Palacios et al., 2014; Soto-Acosta et al., 2015)	Increase customers’ satisfaction (BusP1)	0.814^__	^____	0.914	0.916	0.732
	Increase sales volume (BusP2)	0.796***	11.45
	Increase overall earnings growth and business profitability (BusP3)	0.945***	14.74
	Enhance firm’s reputation and public image (BusP4)	0.859***	12.80
Operational Performance/ (Devaraj et al., 2007; Soto-Acosta et al., 2015; Benitez et al. 2018)	Enhance delivery speed and logistics efficiency (OpsP1)	0.620^__	^____	0.820	0.820	0.541
	Enhance the level of flexibility and responsiveness to market changes (OpsP2)	0.952***	8.998
	Enhance productivity (OpsP3)	0.688***	7.343
	Enhance quality of products and service as perceived by customers (OpsP4)	0.631***	6.744

Note: ^aAll items related to E-SC practices were assessed using a five point Likert scale (1 =  not considering it, 2 =  planning to consider it, 3 =  considering it currently, 4 =  carrying out to some degree, 5 =  carrying it out fully), and items related to performance were also assessed on a five point Likert scale (1 =  not at all, 2 =  a little bit, 3 =  to some degree, 4 =  relatively strong, 5 = very significant).

***p-value<.001, ** p-value<.01, ^__ Fixed parameter for scaling purposes.

4.2. Control variables

Because larger firms may have easier access to resources (Alvarez Gil et al., 2001), they might be more willing and able to invest in developing highly advanced E-SC. Thus, we controlled for the effects of firm size using the number of full-time employees as a proxy indicator (Mishra & Shah, 2009; Wagner, 2011). Additionally, the duration of E-SC implementation is suggested to be a critical contingent factor (Tortorella et al., 2019) that may influence E-SC practices and performance relationship, since it may refer to a firm’s E-SC maturity level. Duration of E-SC implementation was controlled for using total years of implementing E-SC.

4.3. Sample and data collection

Respondents targeted in this study are from Omani manufacturing companies from various industries. All of these companies are having a minimum of 30 full-time employees and are registered with the Omani Ministry of Commerce, Industry and Investment Promotion. The cut-off number of employees (≥30) for the targeted firms was selected to ensure a minimum firm complexity in which various internal and external E-SC initiatives may be relevant. It was also selected to have some degree of confidence that issues related to the development of E-SC initiatives are explicitly incorporated in the strategy and operations of the targeted firms and at the same time, to ensure a good number of firms in the sample frame. Further, data collection was not restricted to a specific industrial sector in order to ensure having sufficient sample size that would enable us to apply a robust statistical analysis. The survey was sent to around 550 top managers and CEOs of a diverse range of Omani firms. A clear instruction was added to the cover page of the survey indicating that the questionnaire should be answered by the most knowledgeable manager/individual about the E-SC practices and performance of the firms. Distribution of the questionnaire to the target companies took around 5 months and resulted in a total response rate of 22.2% (122/550). Fourteen responses were discarded due to several reasons such as incomplete information and providing a same response to all items – the questionnaire, bringing the effective response rate to 19.6% (108/550). Following approaches used by other SCM studies (e.g. Zhu et al., 2008), we targeted a single respondent from top or middle-level management in each firm.

Respondents were assured that that participation was anonymous. The average years of experience of respondents was 7 years work experience in their firms and most of them are CEO, top managers or top directors of their companies. The average years of experience of the participating firms in implementing E-SC was 5 years. The distribution of respondents by industry shows that they are from different industries including plastic products (22%), chemical products (14%), electronic equipment (11%), publishing activities, printing, photocopying (9%) and others. Most of these firms had begun their implementation of E-SC initiatives more than 3 years previously.

4.4. Controlling for bias

Non-response bias was analyzed in this study using a t-test to measure the equality of means and a Levene’s test to assess the equality of variances for the early and late sets of respondents on 7 randomly selected measurement variables of our dependent and independent constructs (Armstrong & Overton, 1997). Both tests indicated no significant differences (p < 0.05) of means and variances between the two groups on the selected variables, suggesting that non-response bias is not a critical issue. Further, because date for both the dependent and independent variables were collected from single respondents, the common method bias was tested using the Harman’s single-factor test. With unrotated Exploratory Factor Analysis (EFA) and eigenvalue greater than 1, results of Harman’s single-factor test showed the presence of four different factors and that the first factor explains only a 27.4% of the variance, revealing that common method bias is not a critical issue in our data.

4.5. Constructs reliability and validity

Construct reliability and validity of our proposed model is assessed through Confirmatory Factor Analysis (CFA). The results are reported in Table 2. Cronbach’s alpha is used to evaluate construct reliability. The results range from 0.820 to 0.928 for the constructs, indicating high internal consistency. Further, all estimated standard loadings of our items are significant (p < 0.05), revealing adequate convergent validity. The discriminant is assessed using the Average variance extracted (AVE) (Fornell & Larcker, 1981), which provides good indication of wither different constructs diverge from one another. Table 3 shows that each of the constructs has a square root of AVE greater than 0.5 and higher than their correlations with any of the other constructs (Hair et al., 2021). As shown in Table 3, all square roots of AVEs are above 0.75 and much higher than cross-correlations. Such result suggests that the items share more common variance with their respective constructs than with other constructs, indicating discriminant validity of the constructs (Fornell & Larcker, 1981).

Table 3. Correlation matrix and square root AVE and descriptive statistics of the constructs.

	IntESC	ExtESC	BusP	OpsP
IntESC	0.817
ExtESC	0.203	0.884
BusP	0.191	0.424	0.856
OpsP	0.304	0.361	0.608	0.736
Mean	3.78	3.96	3.40	3.47
S.D.	1.30	1.05	0.81	1.11

Note: Square root of AVE on the diagonal.

Correlation is significant at p < .01 for values greater than 0.180, and at p < .001 for values greater than 0.220.

5. Results of data analysis

After establishing the reliability and validity of our constructs and measure, Structural Equation Modelling (SEM) was used to analyse the relationships among the constructs and assess the proposed mediating relationships between various E-SC practices and performance. This was done by testing the overall model fit, the size, direction and significance of structural path coefficient for three competing model, when: (1) each type of E-SC practices is used as a direct predictor to performance (Model 1), (2) when External E-SC practices is conceptualized as a mediator between Internal E-SC and performance (Model), (3) when Internal E-SC practices is conceptualized as a mediator between External E-SC and performance (Model 3). Regarding the mediation effect of E-SC practices, Baron and Kenny (1986) approach to test the mediation using the SEM was followed as suggested by previous mediation studies (Hair et al., 2021; Zhu et al., 2012). According to this approach, the mediation effect between a dependent variable (DV) and an independent variable (IDV) is confirmed when the following conditions are satisfied: (1) the relationship between the DV and the IDV must be significant, (2) the link between the IDV and the mediator variable (M) must be significant, (3) the link between M and the DV must be significant and (4) the previously significant effect of the IDV on the DV must diminish or become non-significant after controlling for the effect of M (Baron and Kenny, 1986; Hair et al., 2021). Table 4 (column 1), Table 4 (column 2), and Table 4 (column 3) below show the SEM results of the direct effect model and the two mediating effects models (1-when external E-SC is a mediator, and 2-when internal E-SC is a mediator), respectively.

Table 4. Results of structural equation modelling.

Direct Effects Results (Model 1)	Direct effects model	Mediation effect	Decision on Hypotheses?	Mediation results
IntESC→ BusP (H1a)	0.117*		Supported
IntESC →OpsP (H1b)	0.546***		Supported
ExtESC→ BusP (H2a)	0.214**		Supported Supported
ExtESC→ OpsP (H2b)	0.418**
Mediation Effects Results (Model 2)
IntESC→ BusP (H1a)	0.092		Not supported	Full Mediation
IntESC →OpsP (H1b)	0.415***		Diminished Supported	Partial mediation
ExtESC→ BusP (H2a)	0.207**		Supported
ExtESC→ OpsP (H2b)	0.331***	0.533***	Supported
IntESC→ExtESC (H3)			Supported
Mediation Effects Results (Model 3)
IntESC→ BusP (H1a)	0.111*		Supported
IntESC →OpsP (H1b)	0.394***		Supported
ExtESC→ BusP (H2a)	0.178*		Diminished Supported	Partial mediation
ExtESC→ OpsP (H2b)	0.370***	0.357***	Diminished Supported	Partial mediation
ExtESC→IntESC (H4)			Supported
Control Variables’ effects Size^a → BusP Size→ OpsP Years^b → BusP Years→ OpsP		0.152* 0.107 0.097 0.128*

Note: *Path is significant at p < .05 for values greater than 0.150, ** p < .01 for values greater than 0.220, at *** p < .001 for values greater than 0.250.

◊InESC → Internal ESC, ExtESC →External ESC with customers and suppliers, BusP→Business Performance, OpsP→Operational Performance.

^aTotal number of employees was used as to measure size as suggested by Wu et al., 2003; Zhu et al., 2006; Sanders, 2007; Popa et al., 2016), ^bTotal years of implementing E-SC.

Regarding the model fit, as can be seen in Table 5, all models have achieved a satisfactory level of fit. However, the level of fit of both model 2 and 3 is better when compared to the model fit of the direct effect model, providing initial support that the effects of various, yet interrelated, types of E-SC practices on performance should be better seen from a mediating perspective to obtain a clear understanding of how E-SC practices are related to performance.

Table 5. CFA models’ goodness of fit results.

Models\indices	χ2 (d.f)	Normed χ2	CFI	IFI	RMSEA	PCFI
Structural models
Model 1	504.76(224)	2.254	0.908	0.910	0.078	0.765
Model 2	478.82(231)	2.073	0.922	0.937	0.075	0.780
Model 3	478.82(231)	2.073	0.911	0.924	0.075	0.777
Suggested values (Hair et al., 2021)		<3.0	≥.9	≥.9	<.10	≥0.70

Comparing the significance of direct relationships between our constructs in Model 1, the results of column 1 (Table 4), show that the relationships between internal E-SC → OpsP, external E-SC → BuP and external E-SC → OpsP are all strongly significant (β = 0.546, p < 0.001, β = 0.214, p < 0.01, and β = 0.418, p < 0.001, respectively). However, the relationship between internal E-SC → BuP is significant at the p < 0.05 (β = 0.117, p < 0.05). Thus, while H1b, H2a and H2b are strongly supported at p < 0.01, H1a is supported significant at the 0.05. These results show that, although both internal and external types of E-SC practices have strong effects on operational performance, only external type of these practices can have a direct and significant effect on business performance. This may suggest that the effect of some groups of E-SC practices on business performance may requires more coordination with other interrelated types, thus the coordination amongst them should be considered when implementing these practices.

Regarding the results of the mediated relationships between internal E-SC and performance via the external E-SC in Model 2, the results of column 2 (Table 4, Model 2), show that the relationship between internal E-SC and external E-SC is strongly significant (β = 0.533, p < 0.001). Additionally, these results shows that the previously significant direct links between internal E-SC and OpsP is still strongly significant but its significance has diminished (β = 0.415, p < 0.001), suggesting the partial mediation effect between these two constructs. On the other hand, the direct links between internal E-SC and BusP has become non-significant at the p < 0.05 (β = 0.092), suggesting the full mediation effect between these two constructs. Thus, H3 is supported.

Regarding the results of the mediated relationships between external E-SC and performance via the internal E-SC in Model 3, the results of column 2 (Table 4, Model 3), show that the relationship between external E-SC and internal E-SC is strongly significant (β 0.357, p < 0.001). Additionally, these results shows that the previously significant direct links between external E-SC and BusP, and external E-SC and OpsP are still significant but their significance have diminished (β 0.178, p < 0.05, and β 0.370, p < 0.001 respectively), suggesting the partial mediation effect between these two constructs. Thus, these results confirm the partial mediation effect between external E-SC and performance. Thus, H4 is supported.

6. Discussion

Since the early development of web and e-business, significant changes have taken place within the strategies that organizations use to conduct their business and operation in order to achieve cost efficiency and better performance (Bala, 2013). E-SC has been one of the major outcomes of the development of these e-technologies and has been considered and used by several organizations to help them strengthen their relations with their clients and business partners (H. Liu et al., 2010). However, improper implementation of these technologies can lead to disastrous circumstances. Obtaining a better understanding of the appropriate approaches to apply e-technologies like the E-SC, how and when these electronic options of managing their supply chain processes lead to better performance is vital before deploying them to obtain the intended advantages (Tsiga et al., 2017).

The current study is a response for ongoing calls to have more empirical studies to identify the best ways for obtaining outstanding performance from the implementation of numerous electronic initiatives in the areas of operations, logistics and supply chain management. Results of this study are important to determine the significance and directions of mediated interrelationships between internal and external types of E-SC and two dimensions of performance (i.e. business and operation). As highlighted earlier, the results of hypotheses testing were illustrated in Table 4 in three different models. The main argument of these models is that there are situations where the adoption of internal E-SC practices is a necessary step for effective adoption of external E-SC (Model 3). On the other hand, in some situation the effective implementation of internal E-SC practices might sometime requires the adoption of external E-SC for better contribution to performance improvement (Model 2). Finally, there are situations where the effects of internal and external E-SC practices on performance are independent (Model 1), in which previous studies have reported mixed findings on these independent relationships. Such conflicting findings of previous researches, suggest for the need to examine different ways of how various categories of E-SC practices are related to performance, which might include the mediations effects of these factors.

Results of model (1) showed that internal E-SC and external E-SC have positive and significant impact on business and operational performance. Thus, H1 and H2 are supported. These results are in line with prior studies that confirmed the relationship between E-SC and performance (Aloqool et al., 2022; Alzoubi & Yanamandra, 2020; Caputo et al., 2004; Rasool et al., 2022). Most studies have examined the relationships between the two types of E-SC and the two dimensions of performance in isolation, which has led to inconclusive findings. Our study examined these factors in a single comprehensive model, which can provide a clearer conclusion on whether E-SC affects performance and which type has the strongest effects.

While the second model (2) illustrated the mediating role of external E-SC in the relationship between internal E-SC chain and both business and operational performance, the third model (3) illustrated the mediating role of internal E-SC in relationship between external E-SC and both dimensions of performance. Our results supported both H3 and H4, indicating that external E-SC can be considered as a mediator between internal E-SC and performance, but the significance of the mediating role of the external E-SC is stronger than that of the internal E-SC. These results are partially supported by pervious works (e.g. Asamoah et al., 2021; Bruque Camara et al., 2015; Khanuja & Jain, 2022), which have argued that E-SC with external supply chain stakeholders is crucial to obtaining supply chain advantages. Our study conceptualized E-SC as two distinct, yet interrelated, types to gain a better understanding of how they affect each other’s implementation and a company performance. These unique results contribute to supply chain literature and enhance managers’ awareness of E-SC advantages.

Our findings support prior research on the need of synchronizing E-SC operations. For example, numerous studies (e.g. Adams et al., 2014; Chae et al., 2005; Fawcett et al., 2007; Wu & Chiu, 2018) have proved the importance of information technology in improving supply chain partner coordination and network integration. These and other studies show that E-SC may improve operational effectiveness, corporate success, customer happiness, and competitiveness. Business intelligence and electronic systems in supply chain management are increasingly important for organizations to assess internal and external operations and better adapt to market developments. Cutting-edge technology enables firms to gather and improve internal and external data for supply chain activities. Complex data was seldom accessible, making internal and external supply chain information management coordination more important than ever. In general, collaborative and coordinated supply chain for information management improve a firm’s operational performance by delivering real-time, accurate, and coordinated information inside and across a supply chain network.

Furthermore, and when considering our results regarding the direct and indirect relations of E-SC practices on business performance, all models show that external E-SC tends to have stronger effects on business performance when compared to the effect of internal E-SC practices. Our results show that in some cases internal E-SC even tends to have no significant direct effects on business performance when external E-SC was added as a mediator. This might be because most of the internal E-SC practices are operationally concentrated and their effects would be mainly operationally focused, while the external E-SC practices, especially those related to e-customers’ relationship management are more market and business focused. This shows that, in addition to the operational performance indicators, firms are increasingly considering the business performance as important indicators for the positive outcomes of E-SC practices. However, one of the challenges with the implementation of these practices is that there may be a long time gap in obtaining business performance from internal E-SC practices, and such benefits can be achieved more readily when related to external E-SC with customers and suppliers. This may offer opportunities for future research to investigate the impacts of adopting specific types of external E-SC such as those related to e-customer management on different elements of the business performance of the firm. Additionally, when compared to manufacturing companies in more developed Countries, companies in Oman and in some other similar developing countries may be less motivated to the adoption of the 4th industrial revolution technologies such as those related to the E-SC. E-SC is a relatively new concept in some of these developing countries, and countries like Oman are still in the early stages of implementing such advanced practices, and local managers may still face difficulties in developing these. The coordinated and collaborated implementation of various E-SC practices requires high investments and it may take time before manufacturers realize more direct business and economic benefits, suggesting for the need to conduct more longitudinal studies in the future to confirm this.

7. Conclusions and research implications

Several studies have provided empirical evidence demonstrating that the adoption of E-SC activities may enhance operational performance (Abdirad & Krishnan, 2022). However, as our findings suggest that it is important to note that the nature of this connection is contingent upon the specific sort of E-SC practices that are implemented. Similarly, scholars have examined the relationship between the adoption of E-SC practices and corporate success but mixed results were obtained. The lack of definitive conclusions on the connections between E-SC and performance is a significant obstacle for managers seeking to rationalize and validate their investments in the development and implementation of E-SC. Prior research has also identified different degrees of external and internal E-SC practices within organizations (Fekir et al., 2022). This may partially explain the contradictory results on E-SC adoption and company operational and business success, and suggest that further empirical work is needed on these links. The implementation of internal and external E-SC strategies involves several types of collaboration when examining their performance. However, a collective, joint investigation of the coordination mechanism of both internal and external E-SC practices within and across organizations and its impacts on performance has rarely been researched by the current E-SC empirical research. Such studies are needed to provide new implications to the theory and practice of E-SC field.

This study contributes to the existing literature by proposing and empirically examining three theoretical frameworks that explore the potential coordinated mediating effects between internal and external E-SC practices and firm performance. The coordination theory serves as the theoretical foundation, while the structural equation modelling (SEM) approach is employed as the primary analytical tool. The objective is to provide a comprehensive understanding of the mediating linkages between E-SC adoption and performance. This research study builds upon the findings of prior research (e.g. Bi, 2017; Green et al., 2012; Turban et al., 2015). These studies highlighted the importance of IT infrastructure, business relationships, and customer cooperation in improving E-SC management effectiveness. The findings of our research implied that both internal and external E-SC positively and significantly affect business and operational performance. Additionally, both external and internal E-SC found to significantly mediate the link between E-SC practices and business and operational performance. For the community of researchers and professional practice of E-SC, these findings imply that improving business and operational performance requires synchronization of internal and external E-SC initiatives and practices.

Our results are reinforced by earlier studies on the use of electronic options for successful supply chain operations and the influence of coordinated supply chain activities on performance enhancement. E-SC cooperation can reduce inventory management hurdles (Ross, 2016). The coordination of supply chain activities, such as supplier relationships, sales commitments, logistics, assortments, production capabilities, and buying/selling procedures, was identified as a crucial factor in the successful implementation of electronic order processing (F. R. Lin & Shaw, 1998, 2001; Reaidy et al., 2015). The use of electronic order processing, coupled with efficient supply chain coordination, has the potential to mitigate inefficiencies, superfluous activities, and unforeseen expenses (Chaffey, 2007; Turban et al., 2015). Results of our study show and imply that supply chain coordination is vital to organizational effectiveness. In the lack of internal operations coordination, external E-SC activities may not achieve ideal performance. Engaging customers and suppliers in E-SC activities is key to improving corporate success. Without coordination and integration with internal E-SC procedures, progress is difficult. These findings and the direct and mediated frameworks are expected to help managers choose the best order for adopting E-SC techniques and activities. Strategic cooperation improves organizational performance.

Several other theoretical and practical implications are derived from results of this study. For example, we argued the relationship between various different, yet interrelated, types of E-SC implementation and firm operational and business performance. Therefore, this study bridged the gap of former research which studied the relationship between specific types of E-SC and firm performance in isolation from each other. Second, we introduced the important of building a coordinated-collaboration E-SC capability into the relationship between E-SC practices strategy and firm performance. Furthermore, we found the mediated effect of E-SC practices and evaluated its impacts on performance. This study explained why and how E-SC implementation can create and add value to the firm and its supply chain.

Our findings are also relevant for E-SC practice. First, managers of business enterprises should properly develop E-SC practices to guide their actions and capture business opportunities in the E-SC setting. Second, highly coordinated E-SC initiatives should be used to guide the proper implementation of other inter and intra E-SC capabilities, and to gain the desired operational and business advantages as this E-SC implementation is the mediator to capture firm business and operational performance or even competitive advantage. This finding aligns with recent advancements in coordination theory, emphasizing the need to align individual actions and goals within the broader network for collective success (Choi & Choi, 2022; R. Li et al., 2023). Thus, by employing and extending coordination theory in this study, we shed light on the intricate dynamics at play within interconnected supply chains. This deeper understanding equips both academics and practitioners with the tools to navigate the complexities of E-SC implementation and unlock its full potential for enhanced performance.

Thus, by strategically managing E- supply chain activities E-SC can help organizations gain a competitive edge. The mediations of various E-SC practices and the sequence of their implementation to optimize operational and commercial performance was still unknown. Therefore, for managers and academics empirically exploring such mediations is critical to enhance the understanding on how E-SC improves performance. E-SC coordination is essential for managing electronic interdependencies among supply chain partners in operations, logistics, procurement, manufacturing, marketing, sales, and more. The lack of appropriate coordination and collaboration between internal and external E-SC initiatives may hurt a firm’s operational and business performance.

8. Limitations and future research directions

While our study has shed light on the interrelationships between E-SC coordination, collaboration, and performance impacts and provided several contributions to E-SC and operational management literature, it also opens doors for further exploration in this dynamic field. Considering the scope of our study and recognizing the inherent limitations of this research paves the way for exciting future directions that can deepen our understanding and guide practical implementation.

For example, one key opportunity lies in delving deeper into the contingency factors that modulate E-SC effectiveness. Beyond our initial focus on manufacturing firms, future research can explore how industry nuances, firm size, organizational culture, and technological maturity influence E-SC adoption and its impact on various performance metrics. This granular approach can yield more targeted insights and practical recommendations for different organizational contexts. Furthermore, expanding our scope beyond the consequences of E-SC can prove instrumental. Future studies could investigate the antecedents that drive firms to prioritize E-SC initiatives in the first place. Identifying internal and external factors that incentivize and facilitate E-SC adoption can provide valuable guidance for policymakers and organizational leaders seeking to foster a collaborative supply chain ecosystem. Also, our reliance on a positivist and objectivist approach, while robust, necessitates acknowledging its limitations. Future research can enrich the dialogue by incorporating qualitative elements alongside quantitative surveys. Utilizing in-depth interviews or focus groups can unlock subjective experiences and contextual nuances that might be missed by standardized questionnaires. This multifaceted approach can provide a more holistic understanding of how E-SC strategies materialize in the lived experiences of individuals and organizations. Generalizability can be further enhanced by diversifying the research landscape. Future studies can gather data from multiple industries, geographic regions, and organizational contexts. This diversity can reveal cross-cultural nuances and generalizable patterns that our single-nation study might not capture. Additionally, incorporating objective data alongside survey responses can strengthen the validity and reliability of findings, further improving their decision-making potential.

By embracing these future research directions, we can move beyond the limitations of our study and embark on a deeper exploration of E-SC’s intricate tapestry. By embracing diversity, subjectivity, and action-oriented insights, we can unlock the power of collaboration and drive a paradigm shift in how E-SC is understood, implemented, and optimized for sustainable success.

Ethical statements

With this submission, the author confirms no conflict of interest and the manuscript has been produced using data that does not required ethical approval and does not involve direct Human Participants and/or Animals

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research was partially funded by University of Technology and Applied Sciences, internal grants 2022/2023.