Digital Transformation and Sustainable Supply Chain Performance for Sustainable Development: The Mediating Role of Supply Chain Capabilities

ABSTRACT In the era of digital transformation (DT), achieving sustainable supply chain performance (SSCP) has become a strategic imperative for manufacturing firms. While DT is widely recognized as a key enabler of sustainability, its specific influence on SSCP, particularly through the mediating roles of supply chain agility (SCA), supply chain resilience (SCR), and supply chain collaboration (SCC), remains underexplored. Drawing on the dynamic capabilities view (DCV), this study examines how DT impacts SSCP by conceptualizing SCA, SCR, and SCC as mediating capabilities. A quantitative research approach was employed, utilizing survey data collected from 214 managers in Saudi Arabia's manufacturing sector. Data were analyzed using partial least squares structural equation modeling (PLS‐SEM). The results indicate that DT positively affects SCA, SCC, and SCR, and also exerts a direct positive effect on SSCP. Furthermore, these three capabilities partially mediate the relationship between DT and SSCP, suggesting that digital technologies enhance sustainability outcomes by strengthening internal supply chain capabilities. This study extends the DCV framework by validating the mediating roles of SCA, SCR, and SCC in the relationship between DT and SSCP. From a practical standpoint, the findings offer actionable insights for manufacturing firms aiming to improve sustainability performance by leveraging digital tools, fostering collaboration, and enhancing agility and resilience.