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Abstract
Digitalization of the supply chain represents using several advanced digital technologies to support and synchronize organizational interactions by making services more valuable, accessible, and affordable for customer satisfaction. Given the growing significance of supply chain digitalization, developing a valid and reliable instrument to assess the level of digitalization of supply chain practices is imperative. However, no systematic and scientific study has been carried out to develop such an instrument. This study aims to conceptualize, develop, and validate a multifaceted scale for assessing the digitalization practices in the supply chain. Data for the study are collected from 246 organizations, and measurement scales are evaluated and validated using structural equation modelling. Using competing model strategy, five alternate competing models are developed and tested to identify the best fitting parsimonious model. Following the well-established procedure of instrument development, the study confirms the existence of four dimensions of digitalization practices, namely sourcing digitalization, operations digitalization, distribution network digitalization and digitalized strategic planning with adequate levels of reliability, convergent validity, discriminant validity and nomological validity. The study theoretically conceptualizes and operationalizes digitalization associated with Industry 4.0 as a multi-dimensional construct tapping its four key dimensions. The findings contribute to the existing literature by offering an understanding of the multi-dimensional scale of digitalization practices, which will be highly valuable for future research on the digitalization of the supply chain in the industry 4.0 environment.
Acknowledgement
Authors would like to express sincere thanks to the Editor and reviewers for giving constructive comments to improve the quality of this paper.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Additional information
Notes on contributors
Ruchi Mishra
Ruchi Mishra is an Assistant Professor in Production Operations Management & QT area at Institute of Rural Management Anand (IRMA), India. She holds her Fellow (Ph.D.) from National Institute of Industrial Engineering (NITIE), Mumbai, India. She has published papers in journals such as Computer & Industrial Engineering, Annal of Operations Research, International Journal of Logistics Management, Journal of Cleaner Production, IEEE Transactions on Engineering Management, International Journal of Consumer Studies, Journal of Enterprise Information Management, and International Journal of Retail & Distribution Management. Her major interests are in the areas of Digitalization, Green Supply Chain Management and Supply Chain Aspects of Omnichannel Retailing.
Rajesh Kr Singh
Dr. Rajesh Kr Singh is Professor in Operations Management Area at Management Development Institute (MDI), Gurgaon, India. His areas of interest include Supply chain management, Industry 4.0, Circular Economy. Currently, he is serving as Associate Editor to International Journal of Consumer Studies (Wiley) and International Journal of Global Business and Competitiveness (Springer). He is also on the Editorial Board of Journal of Supply Chain Management Systems and Vision-The Journal of Business Perspective. He has also worked as Guest Editor for special issues of Resources, Conservation and Recycling, Sustainable Production and Consumption, Competitiveness Review, Journal of Modelling in Management, Administrative Sciences, Global Journal of Operations and Strategic Sourcing etc. He has published research papers in reputed top category international/national journals and conferences. He has published papers in journals such as Resources, Conservation and Recycling, Journal of Cleaner Production, Production planning and Control, Annals of Operations Research, International Journal of Production Research, Applied Soft Computing, Clean Technologies and Environmental Policy, Industrial Management and Data Systems, Singapore Management Review, International Journal of Productivity and Performance Management, Benchmarking: An International Journal, Journal of Modelling in Management, Competitiveness Review: An International Business Journal.
Angappa Gunasekaran
Prof. Angappa Gunasekaran is the director of the School of Business Administration, Penn State Harrisburg. He has published over 300 articles in prestigious peer-reviewed journals. Prof Gunasekaran has held academic positions in the UK, Australia, Finland, India, and Canada. He has presented and published over 50 papers and articles in conferences and at several invited leadership talks across the globe. He is on the editorial board of several journals and has organized numerous international workshops and conferences in the emerging areas of Operations and Supply Chain Management.