Strategizing Smart Supply Chain Adoption: An Integrated Framework for Industry 4.0 Transformation in the Automotive Industries, Kerala

Abstract

This research investigated which strategic factors determine the implementation of Smart Supply Chain (SSC) systems in the automotive sector, while the research specifically examined how Strategic Digital Alignment (SDA) functions as a mediating variable. The research developed an integrated strategic framework that consists of nine organizational strategies that explain Dynamic Capability Theory and Resource-Based View. The researchers employed a mixed-method research design, which combined survey data from managerial professionals in automotive firms in Kerala with qualitative interviews. The results from Structural Equation Modeling (AMOS) analysis demonstrated that all strategic dimensions produced strong positive effects on SDA, while SDA demonstrated a significant impact on SSC adoption (β = 0.65, p < 0.001), which accounted for 61% of the SSC adoption variance. The strategies showed that data-driven decision-making and digital culture were the strongest predictors of SDA, with respective β values of 0.26 and 0.24. The analysis of mediation showed that SDA functioned as a partial mediator between organizational strategies and SSC adoption. The qualitative research demonstrated that leadership-driven vision, organizational readiness, strategic alignment, and continuous learning served as essential factors that enabled SSC implementation. The results demonstrate that SSC implementation functions as a transformation process that businesses execute through strategic development and alignment with their organizational goals rather than through technological advancements.