Unlocking the potential of digital technologies for sustainable supply chain management strategies

The advent of digital technologies (DTs) has transformed traditional supply chains into agile, efficient, and sustainable networks, known as Supply Chain 4.0. Digital supply chain management (DSCM) is crucial in enhancing supply chain (SC) sustainability by integrating digital tools to improve efficiency, transparency, and environmental stewardship. This study aims to examine the impact of DSCM on SC sustainability, assess the role of a firm’s intellectual capital (IC) in adopting DSCM, and explore the mediating role of supply chain mapping between DSCM and SC sustainability. Focusing on Pakistan’s textile sector, we employed a mixed-method approach, starting with a quantitative analysis using Partial Least Squares Structural Equation Modelling (PLS-SEM), followed by a qualitative case study of two textile companies. Our findings reveal a significant positive relationship between IC and DSCM adoption, underscoring the importance of knowledge resources in leveraging DTs for SC improvement. However, the direct impact of DSCM on SC sustainability was not supported, indicating the need for intermediary processes or factors to enhance the sustainability outcomes of DSCM.