Digital Supply Chain Transformation and Operational Supply Chain Performance: The Mediating Role of Supply Chain Integration Among Manufacturing Firms in Ethiopia’s Special Economic Zones.
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Date
2026-06-24
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Addis Ababa University
Abstract
Digital Supply Chain Transformation (DSCT) has become increasingly important for improving operational efficiency and competitiveness in manufacturing firms. However, there is limited empirical evidence regarding how DSCT develops organizational capabilities for improving business performance in Ethiopia's Specialized Economic Zones (SEZs). Accordingly, this thesis examined how each of the four dimensions of DSCT (i.e., digital documentation systems; digital planning systems; real-time tracking technologies; and data analytics capabilities) impacts upon Operational Supply Chain Performance (OSCP). Additionally, this thesis investigated whether Supply Chain Integration (SCI) serves as a mediator between DSCT and OSCP, as well as how External Ecosystem Readiness (EXR) and Internal Readiness (INR) moderate this relationship. a quantitative cross-sectional research approach is used to collect data via a structured questionnaire from manufacturing firms located in Ethiopian SEZs. Of the 248 questionnaires distributed, 103 were returned for a 41.5% return rate; from these, 86 suitable responses were analyzed via Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4. The results indicated no statistically significant direct effects of the four dimensions of DSCT on operational supply chain performance. However, the two measures of digital planning systems and real-time tracking technology played significant roles in the establishment of supply chain integration. The mediation analysis indicated that supply chain integration does not significantly mediate the relationship between DSCT dimensions and operational supply chain performance. External ecosystem readiness and internal readiness also did not moderate any of these relationships significantly. Overall, even though digital transformation efforts are increasingly being pursued by manufacturing firms in Ethiopia's SEZs, the operational benefits are limited by both a lack of integration maturity and poor ecosystem readiness levels. The research fills a gap in the current literature by studying DSCT as a multidimensional variable with a focus on Ethiopian SEZs, an area that has been under-researched, and also provides pertinent insight to provide managers and policymakers opportunities to improve operational supply chain performance through digital transformation.
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Digital Supply Chain Transformation, Supply Chain Integration, Operational Supply Chain Performance, Specialized Economic Zones, PLS-SEM, Ethiopia.