Digital transformation and quality assurance performance: Examining the mediating role of supply chain agility

Abstract

Digital transformation is recognized as one of the main enablers to reach operational excellence, particularly in quality assurance and supply chain reconfiguration, in today's rapidly evolving industrial market. A clear path for how DT can improve QA performance, however, is not completely defined, particularly in the manufacturing value chain in emerging economies. In this context, the present study first examined the impact of three dimensions of digital transformation – digital infrastructure (DI), digital process integration (DPI) and, data analytics capability (DAC) on quality assurance performance (QAP) and then the mediating role of supply chain agility (SCA). The concept of dynamic capabilities theory and resource-based view was used to build a conceptual framework and then tested empirically by survey data collection to the quality management practitioners and supply chain practitioners in manufacturing firms of 312 respondents. This researcher applied the statistical methods called partial least squares structural equation modelling (PLS-SEM) by using software smart-PLS 4.0 to determine the measurement model and structure model. The results show that all three dimensions of digital transformation have direct and positive effects on agility and performance measures of the supply chain and quality assurance. Additionally, it was discovered that the supply chain agility had significant mediation effects on the relationships between each digital transformation dimension and quality assurance performance. The model is statistically significant and has a high percentage of variance explained by the QAP and SCA (R² = 0.681 and R² = 0.624) and has good predictive value. This research is helpful to the existing knowledge on dynamic capabilities as it sets a link between the reconfigured digital resources and the agile capabilities that emerge from the resources, which in turn impact upon the quality outcomes. Managers should seek funding for computer purchases to make their supply chains more responsive, to improve the quality of their products, and some practical suggestions are provided.