Abstract
Due to increasing supply chain disruptions and stakeholder demands for more environmentally friendly business models, managers are searching for ways to ensure sustainability and supply chain performance. We propose supply chain well-being (SCWB) as a new concept that offers a more comprehensive way of managing supply networks. Similarly, the opportunities for SCWB and sustainable business performance (SBP) are facilitated through the application of Industry 4.0 (I4.0) data-driven analytical decision support systems (ADSS). In this context, our study examined the role of ADSS in fostering SBP and SCWB by integrating the theoretical perspectives stemming from organisational information processing theory (OIPT), resource-based view and the knowledge-based view. Our conceptual model was tested on 350 Vietnamese manufacturing SME managers using covariance-based structural equation modelling. The findings highlight the importance of understanding how tacit resources are generated, stored, and analysed for effectively leveraging I4.0 decision support tools. This paper contributes to the existing literature in several ways. First, we extend the supply performance literature by proposing SCWB as a more comprehensive approach to managing supply chain networks. We also show how ADSS can be absorbed by SMEs and extend the OIPT literature by elucidating the role of knowledge sharing, generation, and analysis for information processing capabilities. The findings offer policymakers, technology providers and practitioners to focus on information processing fit for achieving SBP and SCWB.
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Data availability statement
The data that support the findings of this study may be available from the corresponding author upon reasonable request. The data are not publicly available due to [restrictions—containing information that could compromise the privacy of research participants].
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Funding
The research reported in this manuscript is funded by “British Council Environmental Links Grant—528201836” for the project, ‘Circular Economy Knowledge Hub: Promoting Multi-Disciplinary Research, Capacity Building and Leadership’.
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Emilia Vann Yaroson declares no conflicts of interest. Soumyadeb Chowdhury has received the funding from the British Council Environmental Links Grant—528201836. Sachin Kumar Mangla declares no conflicts of interest. Prasanta Dey has received the funding from the British Council Environmental Links Grant—528201836.
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Appendix 1: Survey instrument
Appendix 1: Survey instrument
Construct | Proxies measuring the construct | |
|---|---|---|
Organisational resources | We have digital infrastructure to use decision support systems | Mikalef and Gupta (2021), Dubey et al. (2020a, 2020b), Bag abd Pretorius (2020) and Tseng et al. (2022) |
We have human resources with suitable skills and competencies to use and implement DSS | ||
We have a digital and data management strategy | ||
My organisation has strong leadership to adopt and implement data driven green and lean practices | ||
My organisation has access to necessary knowledge knowledgebase to adopt and implement data driven green and lean practices | ||
Specialised instructions and decision-making models are available to adopt and implement data driven green and lean practices | ||
We integrate internal and external data with internal to facilitate high-value analysis of our business environment | ||
We have explored or adopted cloud-based services for processing data and performing analytics | ||
The organization has access to internal and external talent with the right technical skills to support digital implementation and tools | ||
Our managers are able to understand business problems and to direct analytical initiatives to solve them | ||
Our managers are capable of coordinating analytics-related activities in ways that support the organization, suppliers and customers | ||
We are able to anticipate and plan for the organizational resistance to change | ||
We are able to make the necessary changes in human resource policies for process re-engineering | ||
In our organization we take bold and wide-ranging acts to achieve firm objectives | ||
We have inter-departmental coordination and collaboration to collectively achieve business goals aligned to the priorities | ||
Knowledge sharing | My organisation provides means and mechanisms to employees to share knowledge for digital analytics adoption | Grant (1996), Appelbaum (1997), Arpaci (2017), Bauer et al. (2007), Kearns and Sabherwal (2006) and Wamba et al. (2020) |
My organisation has means and mechanisms to store knowledge shared and disseminated among employees, for digital analytics adoption | ||
My organisation has means and mechanisms to make knowledge accessible among employees, for digital analytics adoption | ||
My organisation has means and mechanisms to explore and experiment with the knowledge for digital analytics adoption | ||
My organisation has means and mechanisms to apply knowledge in sandbox/pilot projects, for digital analytics adoption | ||
My organisation recognises the importance of knowledge sharing within the teams for digital analytics adoption, integration and managing this change | ||
My organisation has training programmes for employees’ digital analytics education | ||
My organisation has knowledge sharing workshops for employees’ digital analytics education | ||
My organisation has means and mechanisms for knowledge co-creation within teams in the context of technology adoption | ||
I have attended training programmes through my organisation to gain digital analytics knowledge | ||
ADSS | Organisation has employed analytical decision support systems to | Dubey et al. (2020a, 2020b), Bag and Pretorius (2020), and Tseng et al. (2022) |
monitor and track products in the value chain | ||
optimize resource utilization, e.g., using waste as a resource, optimal energy consumption | ||
making decisions to support reuse and recycling practices | ||
make green low carbon decisions | ||
monitoring the environmental information (such as toxicity, energy used water used, air pollution) | ||
attract new customers and understand their evolving needs | ||
Making decisions related to business process reconfiguration (logistics/production | ||
Understanding uncertainty in the dynamic market environment | ||
Circular economy practices | We work with clients/suppliers for ecological design of products/services | Dey et al. (2019, 2020), Saha et al. (2022) and Bag et al. (2021) |
During the design stage we consider the possibility to reuse products after they have served their initial purpose | ||
We are using recycled materials as inputs in our processes | ||
We have policy and practices in place to dispose machineries and equipment on time | ||
We design our products for reuse, recycle and remanufacture | ||
Manufacturing processes consider zero waste policy | ||
Find ways to reintroduce end-of-life items into our supply chain or someone else’s supply chain | ||
Decrease the usage of non-recyclable raw materials in our processes | ||
Green operations | Use renewable energy to reduce impact on environment | Dubey et al. (2020a, 2020b), Bag and Pretorius (2020), and Tseng et al. (2022) |
practices for reducing the consumption of energy in the production processes | ||
employ just in time for eco-friendly forward and reverse logistics practices | ||
practices to reduce impact on environment (water, air and noise pollution) | ||
ensure that we use treatments and filtrations to extend the use of industrial resources (such as oils, acids, lubricants) | ||
energy efficient manufacturing and production facilities | ||
product designs consider eco-friendly manufacturing practises | ||
replaced non-recyclable raw materials with renewable, recyclable or biodegradable inputs | ||
rate our suppliers’ compliances with environmental legislation | ||
Supply chain dynamism | Adapted SC processes to decrease lead times | Inman and Green (2021), Braunscheidel and Suresh (2009), Bak et al. (2020) and Queiroz et al. (2021) |
Our operational processes can be easily reconfigured and optimised to cope up with uncertainties | ||
Adapted SC processes to decrease new product | ||
development cycle time | ||
We have flexibility in planning and operations | ||
We have flexibility in manufacturing / operations through layout and processes | ||
We are able to satisfy evolving needs of consumers and trade partners in the context of environmentally friendly choices | ||
Organization reacts immediately to incorporate changes into its manufacturing processes and systems | ||
Production processes are flexible in terms of product models and configurations | ||
Organization has the capabilities to meet and exceed the levels of product quality demanded by its customers | ||
Organization has the capabilities to deliver products to customers in a timely manner and to quickly respond to changes in deliver requirements | ||
Risk management | We identify risks in our SC (short term and long term) | El Baz ad Ruel (2021), Yang et al. (2021) and Ho et al. (2015) |
In the course of our risk analysis for all SC partners, we define early warning indicators | ||
In the course of our risk analysis we analyse the possible impact of supply chain risks | ||
In the course of our risk analysis, we classify and prioritize our supply chain risks | ||
In the course of our risk analysis, we demonstrate possible reaction strategies | ||
Supply chain risk management is an important activity in our company | ||
In the course of our risk analysis, we evaluate the urgency of our supply chain risks | ||
There is a systematic strategy to communicate the risk management plan to employees | ||
My organisation performs period reviews of risks associated with physical and digital assets | ||
Sustainable business performance | We have reduced our manufacturing costs in recent years | Dey et al. (2019, 2020), Saha et al. (2022) and Epstein and Roy (2003) |
We have increased average return on net assets from green products | ||
We have reduced Inventory carrying cost | ||
We have reduced Cost of transportation and handling | ||
We have reduced business waste across our processes | ||
We have improved compliance with environmental standards | ||
We have decreased carbon emissions | ||
We increased revenue from green products and practices | ||
We have improved work safety in recent years | ||
We have improved work environment in recent years | ||
We have commitment from employees and managers towards incorporating environmental management | ||
We have created jobs to support the community and thus contributed to nation’s entrepreneurial growth | ||
Supply chain wellbeing | We are able to cope with changes brought by the supply chain disruption | El Baz ad Ruel (2021), Modgil et al. (2021a, 2021b), Weiland and Durach (2021), Gu and Huo (2021), and Queiroz et al. (2021) |
We are able to adapt to the supply chain disruption easily | ||
We are able to provide a quick response to the supply chain disruption | ||
We are able to maintain high situational awareness at all | ||
We are able to reconfigure business processes considering environmental issues to remain competitive in the market | ||
We are able to trace and track the activities in our SC | ||
We are able to maintain diligence in SC (e.g., ethical sourcing, environmentally certified suppliers) | ||
We collaborate and cooperate with our stakeholders and partners to make SC efficient | ||
We make stakeholders and partners an integral part of the decision-making process | ||
We ensure to meet the needs of the consumers following ethical principles | ||
We remain obedient to the government regulations and policies | ||
We ensure that work practices in our SC is ethical (fair wages, fair labour and fair trade) | ||
We assess third-party risk by understanding our firm’s third-party universe |
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Yaroson, E.V., Chowdhury, S., Mangla, S.K. et al. Unearthing the interplay between organisational resources, knowledge and industry 4.0 analytical decision support tools to achieve sustainability and supply chain wellbeing. Ann Oper Res (2024). https://doi.org/10.1007/s10479-024-05845-5
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DOI: https://doi.org/10.1007/s10479-024-05845-5