Logistics Capabilities, Supply Chain Performance and SMEs Sustainability: the moderating effect of Digital Technology

Abstract

In today’s dynamic business landscape, Small and Medium-sized Enterprises (SMEs) encounter growing challenges in achieving sustainability. Logistics capabilities and supply chain performance play a crucial role in the strategic operations of SMEs, making the adoption of digital technology increasingly vital. However, despite its acknowledged importance in logistics and supply chain management, there is a lack of detailed understanding regarding how digital technology specifically impacts the sustainability of SMEs. This gap highlights the need for focused research into its influence on logistics capabilities, supply chain performance, and overall sustainability. To address this, the study utilized an explanatory single cross-sectional survey method for data collection, employing a stratified sampling technique to draw a sample of 230 participants. The findings revealed that logistics capabilities positively and significantly influence supply chain performance and the sustainability of SMEs. Moreover, digital technology was found to positively moderate the relationship between logistics capabilities and supply chain performance, as well as the relationship between logistics capabilities and sustainability. Based on these findings, the study recommended that organizations adopt advanced data analytics tools to maximize the potential of supply chain data, implement Internet of Things (IoT) technologies for real-time monitoring and enhanced visibility, and utilize cloud-based collaboration platforms to ensure seamless communication and information sharing among supply chain partners.