The impact of digital supply chains on resource sustainability: The role of smart systems in waste reduction as a mediator
Amer Zaid Alqudah, Hazim Ryad Momani, Rawan Alshawabkeh, Lina Al-Abbadi, Amer Hani Al-Qassem, Hamza Kamel Qawqzeh
Abstract
The increased use of digital in the supply-chain activities has provided new opportunities to increase sustainability by enhancing efficiency, maximizing the use of resources, and increasing environmental performance. This paper explores how these smart systems have affected the sustainability of resources within the supply chains with special consideration on how these systems are mediated in the reduction of waste. Based on the data gathered with 387 supply-chain and operations managers working at medium to large organizations, the quantitative research design was adopted based on the utilization of 2 Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4.0. The results show that intelligent systems have a strong positive influence on the sustainability of resources both directly and indirectly by the process related to the reduction of waste. It was observed that intelligent systems have a powerful effect in the elimination of wastes that subsequently has a significant effect in increasing the resource sustainability. This is confirmed in the mediation analysis that shows that intelligent systems demonstrate a partial mediating power between the relationship that exists between intelligent systems and resource sustainability. The findings have added to the theoretical conceptualization of the idea of digital supply-chain sustainability because they prove the value of merging intelligent waste-reduction plans with the technological investment options to maximize the opportunities of such systems. It gives practical implications to managers and policymakers who will aim to integrate the implementation of smart technologies with the concepts of the circular economy and the overall environmental agenda.