The Interplay Between Supply Chain Transparency and Visibility: Implications for Firm Performance in Manufacturing and Service Sectors

ABSTRACT Despite existing studies emphasizing the significance of supply chain transparency (SCT) and supply chain visibility (SCV) in supply chain management (SCM), their potential interplay remains unclear. To address this gap, we develop a framework grounded in dynamic capabilities theory and examine the interactions between two types of SCT (cost and relationship transparency) and three types of SCV (demand, supply, and market visibility), along with their effects on firm performance. We conduct surveys with 297 manufacturing firms and 112 service firms in China, validating our propositions through fuzzy‐set qualitative comparative analysis. Our findings indicate that high firm performance relies on both SCT and SCV, rather than on either aspect alone. Furthermore, demand visibility emerges as the most critical SCV. Finally, relationship and cost transparency play unique roles in manufacturing and service firms. By elucidating the intricate interactions between SCT and SCV, our study contributes to extant SCM literature and offers actionable insights for managers, advocating for a holistic approach that leverages both SCT and SCV to enhance performance.