Proactiveness, knowledge management capability and innovation ambidexterity: an empirical examination of digital supply chain adoption

Abstract

Purpose

This paper has predicted digital supply chain (DSC) adoption through the role of firms' proactiveness, knowledge management capability (KMC), innovation ambidexterity and the moderating effect of environmental dynamism.

Design/methodology/approach

Survey data from 354 managers in manufacturing and service firms were analysed using the PLS-SEM model.

Findings

The present study's findings ascertained the significant role of innovation ambidexterity in influencing DSC adoption, given that innovation exploration's direct and mediating impacts were greater than innovation exploitation's. Firms' proactiveness had the highest path coefficient value among the endogenous variables as an indispensable source for firms to successfully embrace KMC and innovation ambidexterity. The role of firm size on DSC adoption was also significant, revealing that SMEs were more likely than larger firms to adopt DSC practices. Despite its significant effect on innovation ambidexterity, KMC surprisingly exhibited no direct influence on DSC adoption. Furthermore, the findings demonstrated the significant moderating role of environmental dynamism on the effect of KMC on innovation exploration.

Research limitations/implications

This research endeavour has presented valuable insights for scholars and managers, furnishing them with a framework to facilitate decision-making processes regarding adopting DSC practices. A key insight gleaned from this study has been the remarkable value of firms' proactive behaviour and innovation ambidexterity in facilitating DSC adoption decisions. Such adoption has empowered organisations to deploy appropriate interventions and allocate resources efficiently, considering the pivotal role of innovation exploration in contrast to the relatively limited impact of innovation exploitation within this context. Managers may also underscore the significance of firm size in shaping DSC adoption decisions. Small- and medium-sized enterprises (SMEs) have been more likely to embrace DSC initiatives than their larger counterparts. The agile scale and streamlined organisational structures of SMEs often translate into faster decision-making processes, allowing for DSC adoption with relative ease. SMEs might also exhibit a greater openness to reap the benefits associated with DSC systems, such as improved operational efficiency and cost reduction.

Originality/value

The present study has advanced DSC adoption research by examining innovation ambidexterity, knowledge management capability and firms' proactiveness. It has also provided valuable insights for scholars and managers, presenting a framework for decision-making processes regarding DSC adoption in an emerging economy context.

Citation

Hashem, G., Aboelmaged, M. and Ahmad, I. (2024), "Proactiveness, knowledge management capability and innovation ambidexterity: an empirical examination of digital supply chain adoption", Management Decision, Vol. 62 No. 1, pp. 129-162. https://doi.org/10.1108/MD-02-2023-0237