Supply Chain Digitalization and Agility: How Does Firm Innovation Matter in Companies?

ABSTRACT This study investigates the impact of supply chain digitalization on agility through the lens of innovation within firms. Employing a resource‐based view and dynamic capabilities approach, we analyze the relationship between supply chain digitalization and agility. This exploration is essential for fostering an agile supply chain capable of addressing challenges post COVID‐19. The empirical data were gathered through a survey administered in the Emirates. Factor analysis was performed to validate the measurement models and structural equation modeling techniques were employed to test the hypotheses. Further, the study analyses the mediating role of firm innovation between digitalization and supply chain agility within companies. The findings suggest that firm innovation serves as a significant mediator. Moreover, a multigroup analysis was conducted to examine the moderating effects in the research models, revealing that firm innovation plays a pivotal role in elucidating the mechanism between supply chain digitalization and agility. This study offers valuable insights into supply chain agility and resilience post COVID‐19 and makes a significant contribution to the literature on supply chain digitalization.