Digital Technologies for Social Supply Chain Sustainability: An Empirical Analysis through the Lens of Dynamic Capabilities and Complexity Theory

Digital technologies have fundamentally transformed business landscapes, particularly supply chain management. This study aims to explore the role of Industry 4.0 digital technologies in advancing social sustainability in supply chains, focusing on transparency, visibility, and traceability as key mediators. The study draws its theoretical foundation from Dynamic Capabilities Theory and Complexity Theory, providing a dual perspective on the role of digital technologies in supply chain sustainability. The study employs survey data collected from 250 experts from the manufacturing sector in Pakistan to evaluate these relationships. The study utilizes Partial Least Squares-Structural Equation Modelling (PLS-SEM) for hypothesis testing. Key findings indicate that Industry 4.0 technologies positively impact social supply chain sustainability, both directly and indirectly, through enhanced traceability, transparency, and visibility. Notably, traceability emerged as the strongest mediator, highlighting the critical role of tracking in ensuring ethical labour practices and preventing social issues such as modern slavery and unsafe working conditions. The research further suggests that adopting Industry 4.0 technologies can drive improvements in labour standards, environmental practices, and overall supply chain responsibility. The study contributes to the growing body of literature by demonstrating how Industry 4.0 technologies can serve as strategic tools for addressing social issues within supply chains, thereby promoting compliance with global ethical standards and enhancing sustainability.