Linkage between digital supply chain, supply chain innovation and supply chain dynamic capabilities: an empirical study

Purpose There has been limited research that has explored the connection between digital supply chain (DSC) and SC innovation and SC dynamic capabilities. This paper aims to examine the mediating effect of SC innovation on the relationship between DSC and SC dynamic capabilities. Design/methodology/approach The research model and hypotheses were tested, employing (Statistical Package of Social Sciences) SPSS 25.0 and (Analysis of Moment Structures) AMOS 24.0 on data drawn from the Chinese manufacturing enterprises. Findings The study reveals that DSC has a significant positive effect on SC innovation and SC dynamic capabilities. SC innovation also has a significant positive effect on SC dynamic capabilities. Besides, the authors' research illustrates that SC innovation partially mediates the relationship between DSC and SC dynamic capabilities. Research limitations/implications Since the results are derived from the data collected from China, it may not, therefore, be generalized to other settings. Moreover, future research could consider other contextual variables such as “environmental uncertainty” and “Government's Reward-Penalty Mechanism,” which may influence SC dynamic capabilities. Practical implications The study provides practical insights for senior executives and managers in the manufacturing industry. Managers should emphasize the investment of advanced digital technologies and tools (DTTs) and improvement of SC visibility and collaboration. In the digital age, companies should pay attention to the introduction of advanced technologies, tools and processes and focus on cultivating an innovative spirit to promote SC dynamic capabilities, thereby enhancing competitive advantages. Originality/value The paper illustrates that DSC is of great significance to improving SC dynamic capabilities. This study reveals compelling insights for firms to enhance SC innovation and dynamic capabilities by using DSC as an enabler.