Unveiling the role of digital capability in fostering organizational performance. The mediating role of supply chain ambidexterity

Abstract

The rapid pace of digital transformation and globalization has compelled businesses to urgently adopt effective strategies to sustain long-term operations. The purpose of this study is to investigate the extent to which digital capability (DC) and supply chain ambidexterity (SCA) contribute to fostering performance in dynamic organizations. This research was conducted in Bangladesh, with a focus on the pharmaceutical industry. A total of 284 participants were surveyed to assess their understanding of DC and SCA, as well as their roles in performance within their organizations. The collected data were analyzed using partial least squares structural equation modeling. This study found that DC has a significant effect on SCA components, which in turn have a substantial influence on performance. This study incorporates dynamic capability theory to examine organizational performance, highlighting that SCA (exploration and exploitation) mediates the relationship between DC and the dimensions of organizational performance. The findings of this study highlight the vital role of SCA in enhancing organizational performance, which is relevant to theory and decision-making by policymakers and managers. The insights gained provide valuable guidance for managers on aligning DC with their companies’ strategic goals. By simultaneously evaluating the interconnections between DC and SCA, this study builds upon existing empirical research and offers practical guidance for developing strategies to strengthen organizational performance in digitally driven business environments.