The role of digital technologies in supply chain

resilience for emerging markets’

automotive sector
Balakrishnan A.S.
Department of Material Planning and Logistics, Ford Motor Private Limited, Chennai, Tamil Nadu, India, and
Usha Ramanathan
Nottingham Business School, Nottingham Trent University, Nottingham, UK

Abstract
Purpose – The purpose of this paper is to examine the role of digital supply chain (DSC) technologies in automotive supply chain resilience (SCR)
practices to improve the supply chain performance (SC-Perf.) objectives of companies operating in the automotive industry. This study also compares
the results of the associated SC-Perf objectives before and after the COVID-19 pandemic outbreak lockdown situation.
Design/methodology/approach – The authors undertook in-depth empirical research using a questionnaire survey to explore the performance of
automotive supply chains. The sample for this study consisted of practitioners from supply chain entities such as automotive original equipment
manufacturers, Tier-1 component manufacturers and lead logistics providers in Asia-Pacific (AP) emerging markets. Research questions, framework
and hypotheses were developed using the literature review.
Findings – The research outcome from analysis of the data the authors collected from an emerging market context, specifically the automotive
sector, emphasizes the role of DSC technologies and encourages the firm’s SCR practices which, in turn, supports the SC-Perf objectives. The DSC
technologies competency moderates the SCR and SC-Perf objectives relation, and the moderation effect is higher for post-COVID-19 pandemic
outbreak lockdown situation than at prior state.
Research limitations/implications – The scope of the study is restricted to the automotive firms in the AP region. The data were collected from a
representative sample of the population through a questionnaire survey. The small size of the sample incurs a certain level of subjectivity.
Practical implications – This research provides practical insights for practitioners and academicians on DSC technologies’ influence in SCR
practices to improve the firm’s SC-Perf. This research shares the literature insights on use of DSC technologies across the sector to allow the
automotive firm to reassess the existing operational practices.
Originality/value – The paper adds insights on introducing or implementing DSC technologies across AP automotive firms to increase the
operations’ performance by improving SCR practices and sustainability.
Keywords Automotive industry, Resilience, SCM performance, Asia-Pacific, Covid-19, Automotive, Digital supply chain, Supply chain resilience,
Supply chain performance, China, India, Thailand
Paper type Research paper

1. Introduction neglected or delayed (Büyüközkan and Göçer, 2018). Thus,

the research objective is to examine the role of digital supply
Digitalization has touched almost every aspect of humankind chain (DSC) technologies in automotive supply chain
across the globe, greatly impacting supply chain processes. The resilience (SCR) practices to improve the supply chain
primary focus of firms is to retain and fortify their core performance (SC-Perf.) of companies operating in the
proficiencies in a competitive market. In the area of the supply automotive industry. This study also compares the results of
chain, which spans the end-to-end operations in most of the SC-Perf before and after the COVID-19 pandemic outbreak
firms, digital technologies act as a core platform for conducting lockdown situation.
the business. These technologies allow collaboration among The use of DSC technologies across industries is trending
firms across supply chains to interact in the design, supply, upwards. In recent years, data usage has grown rapidly as a
production and distribution of goods and services (Remko, result of globalization and is further stimulated with the help of
2020). While considering organizational change management the internet, networks, social media sites and mobile devices
of automobile supply chains, the digitalization aspect is often (Liu et al., 2016). Nowadays, digital business models are

The current issue and full text archive of this journal is available on Emerald
Insight at: https://www.emerald.com/insight/1359-8546.htm Received 25 July 2020
Revised 16 January 2021
8 April 2021
Supply Chain Management: An International Journal
1 May 2021
26/6 (2021) 654–671 14 May 2021
© Emerald Publishing Limited [ISSN 1359-8546] 22 May 2021
[DOI 10.1108/SCM-07-2020-0342] Accepted 7 June 2021

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Balakrishnan A.S. and Usha Ramanathan Volume 26 · Number 6 · 2021 · 654–671

disruptive because of their complex framework that visibility for effective collaboration with suppliers to fulfill their
encompasses an engaged workforce, supplier collaboration, requirements (Poberschnigg et al., 2020; Zouari et al., 2020).
core business processes, assets and Internet of Things (IoT) During times of business emergencies, supply chain visibility
and customer experience (SAP, 2015). Westerman et al. provides the parts availability and support status from various
(2013) describe the significance of value creation through sources across the globe. Original equipment manufacturers
digitalization strategies, with 9% more revenue creation, 26% (OEMs) then increase their investments in supply chain data
more impact on profitability and 12% more market valuation. visibility and analytics as this allows SCR which enhances the
5G technological advancement supports DSC and vehicle-to- SC-Perf objectives in firms (Chowdhury et al., 2019a). This is
everything technologies. These technologies enable supply to boost the SC-Perf through uninterrupted supplies by
chain communication across stakeholders using the IoT, assessing impact to make swift decisions on a real-time basis.
vehicle-to-vehicle communications, traffic systems and related These efforts increase the SCR for firms to ensure business
infrastructure (e.g. toll booths) to generate awareness around continuity plans are in place through adjusting production
the environment (Vaish and Matthews, 2020). To address schedules or switching to alternative suppliers. To improve and
increasing dynamics in the business environment, supply manage the SC-Perf during a pandemic outbreak or disruption
chains need to be aligned with changing consumer preferences event, it is necessary for firms to implement a digital platform
to meet the new age of volatility and complexity (Christopher from the information technology (IT) perspective to support
and Holweg, 2017; Turner et al., 2018). This enables firms to the data integration and connectivity of the information.
make sustainability provisions in their individual products and In the automotive sector, DSC technologies are widely used
logistics services (Dubey et al., 2017). Craighead et al. (2007) for effective communication across supply chain entities such as
define supply chain disruption as an event that disrupts the flow dealers, OEMs, suppliers and service providers with the help of
of goods and services in a supply chain. To overcome the data. Operations digitalization in the areas of production,
supply chain disruption, resilience allows firms to deliver their warehousing and transport logistics deepen the digital
products and services to the customer in a continuous manner. transformation of SCM (Gautam et al., 2017). Peters et al.
SCR is defined at the firm level as the ability to foresee, respond (2016) describe the role of information and communication
and overcome any SC disruptions (Pettit et al., 2013). Back in
technology (ICT) in the digitalization of the automotive
2011, the Japan earthquake and Thailand flood natural
industry.
disasters impacted global business and generated major risks
Not many of the studies discussed above dealt with the
for companies around the world as they did not have supply
automotive sector. To address this gap, this research examines
chain visibility in the face of such devastating situations. These
DSC technologies and develops an empirical and conceptual
disasters caused substantial economic damage globally
understanding of these technologies on automotive SCR
(Haraguchi and Lall, 2015).
practices to improve SC-Perf in emerging markets based in the
Similarly, the port explosions at Beijing’s maritime gateway
Asia-Pacific region. India, China and Thailand markets are
affected most of the global companies, particularly the
considered as emerging markets as the automotive sales
automobile sector which took the hardest hit (Millar, 2015).
demand is high in these markets. InsteTRUN Pad of
Such supply chain disruption risks cause a ripple effect and
mentioning these markets individually, henceforth, the term
performance degradation for firms in terms of revenue, service
level and productivity decrease (Dolgui et al., 2020). The “emerging markets” is used throughout this paper. Currently,
recent coronavirus (COVID-19) pandemic has significantly firms lack a framework for guiding them in the deployment of
disrupted supply chain and production disruption across all digitalization technologies for better integration across the
sectors and affected trade within and across countries. Ivanov supply chain to manage risks such as normal supply chain
(2020) identifies the components of risk in supply chain disruption or a pandemic outbreak situation. The research
disruptions that are caused because of pandemic or epidemic intends to offer clearer insights and a more integrated
outbreaks: presence of long-standing disruption and its framework to understand the moderating effects of DSC
impulsive scaling; concurrent disruption spread in the supply technologies’ competence on SCR and firms’ SC-Perf
chain (i.e. the ripple effect) and epidemic outbreak propagation objectives, focusing on those firms that currently practice one
in the population (i.e. pandemic propagation); and concurrent or more DSC technologies such as big data, blockchain,
disruptions in demand, supply and logistics infrastructure. robotics process automation (RPA), 3D printing (3DP) and
Thus, to overcome such disruptions, firms need to build their radio frequency identification (RFID) tags, among others.
SCR capabilities to improve SC-Perf objectives. Considering that the respondents from different automotive
Lack of information across supply chain tiers results in firms may have different understandings of these DSC
significant disruption and delays to recover the operations technologies, this research investigates how the mentioned
capacity of business firms and to redress the poor decision- DSC technologies are expected to have different levels of
making of such firms. Research shows how larger corporations impact on a firm’s performance, and sometimes they may have
managed their supply chain – mostly in siloes because of lack of no or limited impact on firm performance. Hence, the
information (Kilpatrick and Barter, 2020). Although data were following research questions guiding this study indicate how
available, data collection and integration for effective decision- automotive firms based in emerging markets effectively handle
making resulted in a mammoth task across the supply chain. and manage the supply chain before, during or after a
The lack of data integration prevented various industrial firms disruptive event occurs with the use of DSC technologies at the
from being agile enough to swiftly react to force majeure firm level. Responding to these research questions through an
situations. Hence, firms need to improve their supply chain empirical study for emerging markets’ automotive firms

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possibly will satisfy the research gap concerning academic BDA ensures the maturity of the analytics tools in providing
references. in-depth analyses and it is considered another vital resource
 How does the competence of DSC technologies influence that drives data analytics competency in firms (Davenport,
automotive firms to practice their routine (day-to-day) 2013). These technologies have high levels of ability which can
operations? carry out analyses regarding current and past events, predict
 How does the use of DSC technologies affect the SCR future happenings and issue the prescription to the firm on
practices to improve the firm’s SC-Perf objectives? where it can take the best courses of actions (Aryal et al., 2018;
 How does DSC technologies’ competence impact the Carlos et al., 2021; Ghasemaghaei et al., 2017). Richey et al.
relationship between SCR practices and SC-Perf (2016) describe the role of big data in supply chain
objectives? management in terms of 5 Vs – velocity, veracity, value, volume
and variety – to process and use the data from the firms to
The rest of the paper is structured as follows. Section 2 presents
derive the desired insights.
the literature review on DSC technologies, SCR practices and
RPA is software that performs routine process tasks such as
SC-Perf objectives. Section 3 is devoted to research model and
an automated email response based on simple rules. Supply
hypothesis development. Section 4 highlights the methodology
chains have many repetitive tasks that can be automated with
which contains the data collection and questionnaire
RPA in sourcing, operations and logistics (Monahan, 2017),
development. Findings and results based on quantitative
which in turn drives the process standardization, continuous
analysis are presented in Section 5. Section 6 describes the
improvement and establishment of the digital workforce.
research discussions and conclusion. Section 7 describes
Hartley and Sawaya (2019) describe RPA as a firm’s quick-win
managerial implications and Section 8 indicates the research
tool for the digital transformation of supply chain business
limitations and scope for future research.
processes to manage repetitive and transactional tasks.
BCT is a nascent state defined as the digital distributed
2. Literature review ledger technology (Cottrill, 2018). In recent days, BCT is being
2.1 Digital supply chain technologies competency – data considered by many SCs around the globe to enhance trust and
performance and quality avoid scam. BCT is able to provide real-time insights and
DSC is a smart, value-driven, efficient process to generate new eliminate redundancies through sharing information to all
forms of revenue and business value for organizations and to parties through its integration with supply chain management
leverage new approaches with novel technological and (Calatayud et al., 2019; Queiroz et al., 2019; van Hoek, 2019).
analytical methods. DSC deals with how supply chain Also, by incorporating the IoT into the blockchain, contractual
processes are managed with a wide variety of innovative fraud will be easily detected and prevented along with improved
technologies such as augmented reality (AR), artificial connectivity and visibility (Min, 2019). This technology is
intelligence (AI), blockchain technology (BCT), big data and implemented in the finance and banking sector, and many
analytics (BDA), cloud computing (CC), robotics (R), sensor other sectors (Kuhn et al., 2021).
technology (ST), omni channel (OC), IoT, RFID, RPA, self- RFID technology supports and synchronizes the supply
driving vehicles (SDV), unmanned aerial vehicle (UAV), chain processes to improve the real-time visibility across
nanotechnology (N) and 3DP (Büyüközkan and Göçer, 2018; warehouse and transportation systems. It can be applied at
Hartley and Sawaya, 2019). Bhargava et al. (2013) state that parts level, shipping container level and finished vehicle level to
DSC is composed of hardware, software and communication ascertain the value stream and identify any bottlenecks. Musa
network systems that support interactions among globally and Dabo (2016) discuss the role of RFID technology and
distributed organizations and arranges the activities of the reveal that, despite technical and cost challenges at present, the
partners in supply chains. It includes buying, making, storing, high potential exists, and RFID technology is likely to grow into
moving and selling a product. Thus, DSC technologies have the future in supply chain management.
been used to modernize the business using digital tools and 3DP technology, also known as additive manufacturing,
techniques to unleash innovation, speed up decision-making involves layer-wise creation of objects by selectively adding
and improve efficiency. materials such as polymers, metals or organic materials, among
To cope with the future of the workplace, firms are in the others (Delic et al., 2019). It will allow firms to produce almost
process of accelerating digitalization and automation toward anything using a 3D printer. Although it is expensive, it has the
core functional areas such as supply chain and manufacturing, potential to shrink and disrupt the existing supply chain and
among others, as DSC technologies promote value chain logistics. Mohr and Khan (2015) indicate how the areas of the
analysis to consider and pre-empt unpredictable business supply chains are most likely to be disrupted by 3DP. A
disruption so that businesses can build competitive advantage prototype for testing non-functional attributes and rare spare
(Linkov et al., 2020). In general, digitalization is considered as parts has been produced using this technology at a minimal
an opportunity for businesses to change their current business scale.
model to achieve revenue and value-added. Digitalization is Ghasemaghaei (2019) considers the following roles of
also referred to as digital innovation and transformation (SAP, measurement items for technology tools: to identify problems;
2015). The scope for the research study considers DSC evaluate different alternatives; offer real-time insights,
technologies such as BDA, RPA, IoT-enabled BCT, RFID and information sharing and retrieval capabilities; perform
3DP. These technologies are considered based on the feedback modeling and simulation; as well as the capability of the
from automotive OEMs’ practitioners based in emerging workforce or employees in the firm to use the critical DSC
markets. technologies (e.g. data analytics). Thus, the workforce with the

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right skills, knowledge and experience is essential in integrating In addition, digital transformations in organizations help them
and analyzing data while using the analytics tools. Having a to overcome challenges faced such as lack of investment, lack of
workforce with the desired capabilities is an important resource skills to evaluate and implement new technologies, resistance to
for firms to generate value from DSC technologies. This change and organization change management (Polites and
research study considers the automotive firms that perform Karahanna, 2012). Thus, top management commitment in
analytics with high velocity and real-time tracking visibility firms to invest in DSC technologies to improve SCR is
measurement items to assess the firm’s competency. This is in considered a measurement item in this research study (Sawyerr
line with the above DSC technologies such as big data, RFID and Harrison, 2019). Developing from the technology
and RPA in line with the literature reference. The breadth and acceptance model (TAM) framework, DSC technologies can
depth of these competencies also determine the firm’s present predict the information acceptance and usage on the job for the
state to understand the knowledge, skill and expertise present firms. This research considers perceived usefulness and
in the workforce. perceived ease of use as measurement items to assess the degree
To use DSC technologies effectively in the firms, data quality to which the practitioners believe that using a technology or a
is recognized as a critical data competency resource which system would enhance their job performance and help them
refers to the quality of the data that are being used in the develop (Davis, 1989).
assessment studies. Wang and Strong (1996) claim that data To lead the digital transition process, it is essential to record
accuracy, reliability, relevancy in terms of representation and the purpose documenting and mapping of current business
data accessibility are key factors to improve the quality of the processes. Digital transition implementation can be led by
data. Also, according to Popovič et al. (2014), data quality those who understand technologies, possess the change
influences the value that data analytics tools generate to obtain management skills and effectively intermediate between supply
insights for decision making. Ghasemaghaei (2019) uses chain and IT. Data analytics, one such digital transition process
measurement items such as security, reliability, time, accuracy, component of DSC technologies, helps to predict the supply
relevancy and appropriate level of details for the data quality chain disruption using the machine learning application for an
construct for analytics study to improve the decision-making. OEM with the help of historical data (Brintrup et al., 2020).
This research study considers the same measurement items to Ghasemaghaei (2019) assesses the data analytics usage with the
qualify DSC technologies to enhance the efficiency of help of duration, recurrence and degree or range. To measure
automotive firms. the usage of DSC technologies in the firms, similar
To enable DSC technologies competency, utilization of measurement items are included in the research as follows: how
available data at the firm is essential. Data utilization is defined employees adopt or accept by gauging the duration of usage;
as a firm’s ability to integrate data of high variety, velocity, how often or frequently technologies are used with compliance;
veracity, value and volume. The velocity of data refers to the and the extent of data shared across supply chain entities for
speed in integrating and analyzing data, the variety of data day-to-day operations.
refers to the analysis of different types of data, the veracity of Refer to Table 1 for DSC technologies use construct, and
data refers to the trustworthiness and reliability of the data, the associated measurement items with the literature reference
value of data refers to the conversion of other insights into listed.
value-added assessment and the volume of data refers to the
integration of large amounts of data (Ghasemaghaei, 2018; 2.3 Supply chain resilience practices
Richey et al., 2016). This research considers the measurement Ali et al.’s (2017) meta-study classifies the literature of SCR
items for data utilization as part of DSC technologies into three constructs: Phases: predisruption, during disruption
competency as the processes of real value data, high volume and postdisruption; Strategies: proactive, concurrent and
data and high variety data. Veracity is part of data quality and reactive; Capabilities, which is the ability to anticipate, adapt,
velocity is already covered under the data performance. respond, recover and learn. SCR has attracted significant
Refer to Table 1 for DSC technologies competency attention from both academics and practitioners because of
construct, and associated measurement items with the increasing uncertainty resulting from rapid climate change,
literature reference listed. rapid urbanization and political instability (Durugbo et al.,
2020). Kamalahmadi and Parast (2016, p. 121) define SCR as:
2.2 Digital supply chain technologies use
[. . .] the adaptive capability of a supply chain (SC) to reduce the probability
Extensive usage of DSC technologies may support the dynamic of facing sudden disturbances, resist the spread of disturbances by
capability (DC) needed to improve business performance in maintaining control over structures and functions, and recover and respond
organizations (Hasegan et al., 2018). The DC is viewed as a by immediate and effective reactive plans to transcend the disturbance and
restore the SC to a robust state of operations.
powerful tool and organizational ability to streamline resources
and capabilities to bring rapid change in business environments Roundy et al. (2017) assert that resilience refers to a firm’s
(Teece, 2012). Teece et al. (1997) propose DC as the resource- ability to recover from shocks and adapt to disruptions. A
based view (RBV) theory extension to elucidate firms’ resilient supply chain captures unanticipated business
competitive advantage in volatile markets with dynamic and disruptions and reinstates the supply chain to a healthy state of
changing environments to make effective decisions. Also, as operations that can result in competitive advantages (Ali et al.,
organizations move toward the digital transformation of supply 2017). A global resilient supply chain has the adaptive
chain processes, they face hurdles that occur when adopting capability to manage disruptions by enabling the supply chain
new information technologies (e.g. user resistance) as well as to bend rather than break, which increases the sustainable
new challenges from the fast pace of digital technology changes. competitive advantage of firms (Ambulkar et al., 2015).

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Table 1 Literature reference and descriptive statistics

Corrected item
Std. total Cronbach’s
Construct name Measurement items Mean deviation correlation alpha
DSC technologies In my organization, we use one or more DSC technologies {such as Big Data,
competency Blockchain, Internet of Things (IoT), Robotics Process Automation (RPA), 3D Printing
(3DP), RFID Tags, . . .} that. . .
perform analytics with high velocity (Velocity) (Richey et al., 2016) 5.270 1.304 0.761 0.972
perform real-time tracking of parts or finished vehicles or shipping containers from 5.360 1.304 0.716
their origins (track and trace) (Musa and Dabo, 2016)
In my organization quality of data used in DSC technology
is secure (Ghasemaghaei, 2019) 5.220 1.291 0.899
is reliable (Veracity) (Ghasemaghaei, 2019) 5.250 1.313 0.891
is relevant to task on hand (Ghasemaghaei, 2019) 5.270 1.308 0.879
is timely (Ghasemaghaei, 2019) 5.320 1.281 0.870
is accurate (Ghasemaghaei, 2019) 5.300 1.286 0.867
has an appropriate level of details? (Ghasemaghaei, 2019) 5.280 1.294 0.876
To make decisions, DSC technologies used in my organization process
real-time data (Ghasemaghaei, 2019) 5.120 1.275 0.845
high volumes of data (Volumes) (Ghasemaghaei, 2019) 5.170 1.265 0.846
different types of data (Variety) (Ghasemaghaei, 2018) 5.170 1.256 0.850
DSC technologies use In my organization, top management is committed on investing the DSC technologies 5.310 1.188 0.961 0.966
(Polites and Karahanna, 2012; Teece, 2012)
In my organization, DSC technologies perceived usefulness (Davis, 1989) 5.300 1.188 0.960
In my organization, employees adapt the DSC technologies in a shorter span of time 5.370 1.197 0.951
(Ghasemaghaei, 2019)
In my organization, DSC technologies perceived ease to use (Davis, 1989) 5.370 1.208 0.931
In my organization, DSC technologies are used more often with data privacy and 5.250 1.248 0.808
protection compliance across supply chain entities (Ghasemaghaei, 2019)
In my organization, DSC technologies are used higher extent to enable shared 5.150 1.203 0.745
understanding of the data flows across supply chain entities (Ghasemaghaei, 2019)
Supply chain resilience In my organization, DSC technologies build across supply chain entities (supplier, LLP,
OEM, dealer) to
improve visibility, collaboration, coordination and understanding (Chowdhury and 5.400 1.120 0.836 0.944
Quaddusa, 2015; Ruiz-Benítez et al., 2018; Zouari et al., 2020)
maintain capacity in production, storage, handling and transportation (Rajesh et al., 5.230 1.201 0.791
2015; Ruiz-Benítez et al., 2018)
develop disaster recovery plan (Pettit et al., 2013; Remko, 2020; Ruiz-Benítez et al., 5.200 1.244 0.886
2018)
perform communication and information sharing (Colicchia et al., 2019; Soni et al., 5.480 1.174 0.861
2014; Ruiz-Benítez et al., 2018)
generate real cost options (Guojun and Caihong, 2008; Remko, 2020; Ruiz-Benítez 5.170 1.217 0.933
et al., 2018)
track using visible transportation (Romano et al., 2013; Ruiz-Benítez et al., 2018) 5.190 1.267 0.807
Supply chain performance In my organization, robust SCM resilience improves supply chain performance at firm
level objectives as follows
Reduced cost (Prajogo et al., 2016) 5.270 1.281 0.869 0.971
Speed of delivery (Prajogo et al., 2016) 5.620 1.263 0.943
Dependability of our service (service rate) (Akkermans and Voss, 2013) 5.520 1.241 0.956
Risk reduction on distribution (Chowdhury et al., 2019) 5.680 1.199 0.876
Sustainability of operations (Cousins et al., 2019) 5.420 1.272 0.947
End customer satisfaction (Ellinger et al., 2012) 5.590 1.310 0.899
Note: Sample size (N) = 313

Ruiz-Benítez et al. (2018) adapt resilient supply chain practices the scenarios with the help of sales demand plans. The SCR
to study and measure the performance impact. In the context of practice of performing contingency planning allows desired
measuring DSC technologies’ influence in SCR practices to measures aimed at identifying and treating a risky event before
improve business performance, this research considers the six it affects the normalcy of the automotive firm’s activities
measurement items as follows: (Hohenstein et al., 2015). DSC technologies’ ability to perform
Adopting the SCR practice to improve visibility, what-if studies support this practice. To enforce security, these
collaboration, coordination and understanding with suppliers technologies allow automotive supply chain partners to prepare
allows automotive OEMs and suppliers to state business against attacks from disruption events (Tukamuhabwa et al.,
processes and systems to anticipate, monitor and respond 2015). DSC technologies support this practice by having
against unexpected or disruptive events in a coordinated way robust data security with disaster recovery plans as part of
(Chowdhury and Quaddus, 2015; Zouari et al., 2020). DSC business continuity requirements from organizations (Cheung
technologies support this practice extensively with historical et al., 2021). Thus, developing a disaster recovery plan allows
data across supply chain entities. SCR practice to maintain the for putting in place the desired measures to recover the
required capacity in productions, storage, handling and normalcy of the automotive firm and de-risk supply chain
transportation allows automotive supply chain partners to activity after an unexpected or disruptive event (Pettit et al.,
retain the desired capacities to manage the new business needs 2013; Remko, 2020). DSC technologies lend support in
arising from the occurrence of supply chain disruption (Rajesh developing the recovery plan considering security, cost and
et al., 2015). DSC technologies support this practice to predict time factors.

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SCR practice of the use of control information systems situation of a disruption or pandemic outbreak, DSC-enabled
enables automotive firms to detect, monitor and respond to transportation ensures the swift recovery of material delivery
unexpected or disruptive events (Romano et al., 2013). (Prajogo et al., 2016). The operational performance objective,
Information systems act as the foundation of DSC technologies dependability of supply chain service, is considered to evaluate the
to support this practice. To perform communication and performance across automotive firms focusing particularly on
information sharing with automotive supply chain partners the service rate in after-market situations using DSC
allows information exchanges between supply chain entities to technologies (Akkermans and Voss, 2013). Operational
detect, monitor and respond to unexpected or disruptive events performance objectives such as risk mitigation or reduction on
(Colicchia et al., 2019; Soni et al., 2014). DSC technologies supply chain and distribution are considered to measure the
support the practice of information exchange or sharing across performance using DSC technologies. The buying and selling
supply chain entities in a flawless manner. The SCR practice of firms’ social relationship plays a vital role in mitigating risks in
developing a flexible supply base allows the creating of a the end-to-end supply chain particularly during situations of
preferred automotive supplier group to secure material disruption (Chowdhury et al., 2019).
procurement when a disruption event occurs (Govindan et al., Business performance objectives such as sustainable supply
2014). DSC technologies are capable of identifying such an chain operations (e.g. green supply chain practices) improve the
alternate source base across the globe and are able to confirm eco-system partners and supply chain traceability for firms.
the support to establish the agreements between automotive With the help of DSC technologies, identifying optimized
supply chain partners, which results in more jointly beneficial distribution networks and using green practices such as
agreements with desired incentives and responsibilities across returnable packaging containers increase the performance.
time. Both firms agree to improve their response over recovery Traceability allows quicker recovery from the disruption to
capacity against disruption events (Tukamuhabwa et al., 2015). normalcy situations (Agyabeng-Mensah et al., 2020; Cousins
DSC technologies support measuring the capacity shortfalls et al., 2019).
across time against demand. Thus, they generate real cost The business performance objective, end-customer
options which allow automotive OEMs to pay a proportion of satisfaction, is included based on a firm’s competitive advantage
costs derived from their supplier because of redundancy when a against market rivals and its flexibility in supply chain
disruption event occurs (Guojun and Caihong, 2008; Remko, operations to provide after-sales service considered to measure
2020). DSC technologies have the capacity to compute the SC-Perf. Competitive advantage against market rivals is the
financial details considering the quality and delivery outcome of supply chain transformation and resource efficiency
performance with the help of historical data. using DSC technologies and its influence over resilience
The SCR practice of alternative transportation routing practices in automotive firms (Kalaitzi et al., 2019). Similarly,
allows automotive OEMs to plan to make and authorize flexibility is the automotive firms’ ability to operate in a volatile
suppliers to route the part deliveries on time after an and uncertain environment. By adapting DSC technologies
unexpected event occurs (Govindan et al., 2015). DSC and robust resilience practices in supply chain management,
technologies are capable of recommending an alternate mode flexibility measurement items can gain strategic advantages
of parts shipment. In addition, implementing visible (Tiwari et al., 2015). Thus, end-customer satisfaction is
transportation describes the automotive OEMs’ ability to considered to measure the automotive firms’ supply chain
introduce an advanced tracking system that enables the real- management competency in using DSC technologies and
time visibility of transported elements (Romano et al., 2013). resilient best practices. Also, end-customer satisfaction
DSC technologies such as RFID as discussed in Section 2.1 significantly improves firm performance and shareholder value
support such practice. (Ellinger et al., 2012).
Refer to Table 1 for DSC technology-enabled SCR construct Refer to Table 1 for use of DSC technology and resilience
and associated measurement items across firms with the practices that enabled SC-Perf construct and associated
literature reference listed. measurement items across automotive firms with the literature
reference listed.
2.4 Supply chain performance improvement
DSC technology such as BDA enables significant supply chain 3. Research model and hypotheses development
transformation in business firms to improve their performance
(Fosso and Aktar, 2019). To assess the SC-Perf at the firm Based on the literature review from Section 2, the research
level, measures from use of DSC technologies as well as robust model formed includes four relevant constructs and 29
supply chain management resilience practices, and a mixture of measurement items. While considering a holistic view of
business, economic and operational performance are used to strategic, tactical and operational tasks together to ensure key
evaluate SC-Perf in the study using the performance measures decisions to improve the SC-Perf, this research considers the
established in the literature as follows : firm level to understand the role of DSC technologies and
involvement. It explores how the firms’ data quality enables
Economic performance objectives such as reduced cost for material
purchasing, transportation, energy consumption, and production are competency development for firms and how DSC technologies
considered to evaluate SC-Perf using DSC technologies and resilience influences SCR practices and SC-Perf objectives. It also
practices in automotive firms (Prajogo et al., 2016).
assesses how a firm’s DSC technologies moderates the
Operational performance objectives such as speed of delivery to relationship between resilience practices of supply chain and
ensure timely delivery are considered to evaluate SC-Perf SC-Perf objectives, particularly in the context of supply chain
across automotive firms using DSC technologies. In the disruption situation as shown in the above Figure 1. The survey

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Figure 1 Conceptual framework with hypotheses relations

Supply chain performance

objectives
H2

DSC technologies -
H4
Competency (includes data DSC technologies -
quality) H1
Use H5

H3

Supply chain resilience

was conducted before the COVID-19 situation in December H1. DSC technologies competency will lead to DSC
2019 and then the same was conducted after March 2020. The technologies use and practice.
responses were collected and analyzed for two different periods.

3.1 Effects of digital supply chain technologies 3.2 Effects of digital supply chain technologies use and
competency and digital supply chain technologies use supply chain resilience practice and SC-Perf objectives
The DSC technologies competency used 11 measurement Büyüközkan and Göçer (2018) propose 11 key DSC features
items based on the quality of the data used in DSC which bring distinct advantages for the firm as follows: speed,
technologies, the data characteristics in DSC technologies flexibility, global connectivity, real-time inventory, intelligence,
which can be potentially used for the organizational process to transparency, cost-effectiveness, scalability, innovation,
make effective decisions and the availability of DSC proactivity and eco-friendliness. Practicing BCT drives cost-
technologies in the organization. Ivanov et al. (2019) describe effectiveness through reduction of the transaction costs and
that an increase in data quality of DSC tools such as RFID, eliminating third-party involvement. RFID enables innovation
blockchain and sensors allows for the digitalization of track and and visibility across the supply chain which brings more
trace technologies supply chain application. Data quality also transparency and helps to know the real-time inventory of parts
allows the firm to reduce the information disruption risks, thus
or products for firms to take intelligent or effective decisions in
improving the parts supplies as the coordination occurs on a
challenging times. DSC technologies allow improved
real-time basis across entities. Hence, the data quality could
connectivity among supply chain partners to work on the
help firms to rely on DSC technologies competency while
integration of digital and physical worlds. Hence, DSC
making effective decisions in the event of a disruption. The
technologies practice by firms results in the improvement of
DSC technologies competency approach is to manage and
SC-Perf objectives both in normal and disruption conditions.
analyze the data volume, variety, velocity and veracity to
Thus, we posit the second research hypothesis:
generate business intelligence and analytics value creation for
firms in line with Industry 4.0; hence, these measurement items H2. DSC technologies will support supply chain
were added (Bordeleau et al., 2020). Ghasemaghaei (2019) performance objectives.
indicates that a firm’s data analytics competency can have an
important role in improving the firm’s decision-making quality Resilience is the ability to sustain and restore the supply chain
through data analytics usage and knowledge sharing in the firm. functionality using adaptation and recovery plans. Ambulkar
Data analytics is one of the DSC tools; therefore, the DSC et al. (2015) empirically examine the firms’ resilience to supply
technologies competency builds trust and confidence to allow chain disruption. Chowdhury and Quaddus (2015) develop an
firms to use or practice the DSC technologies effectively in the approach to determine efficient resilient strategies to overcome
event of a disruption to engage in swift decision-making. the dark effects of the supply chain disruption. SCR used six
In line with the literature review, not all DSC technologies measurement items considering that DSC technologies
are widely used across automotive firms. To measure the usage influenced resilience practices: these are visibility
and practice of DSC technology in the firms, six measurement improvement, handle and manage production capacity,
items based on organisational top management’s commitment develop recovery or alternate plans, perform communication
to invest in these technologies have been considered (Teece, and information sharing, develop alternate cost options and
2012). We have also considered the following: perceived parts track and trace during transportation (Ruiz-Benítez et al.,
usefulness, ease of use, adapting over a shorter span of time and 2018). Ivanov et al. (2019) investigate the influence of
using them to a broader extent on a shared basis across SC digitalization in the supply chain considering the firms’
entities with data privacy and compliance (Davis, 1989; resilience. Hence, the DSC technologies practice or use
Ghasemaghaei, 2019). influences the resilience practices in a firm’s supply chain
Thus, we posit the first research hypothesis: operations. Thus, we posit the third research hypothesis:

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H3. DSC technologies use will encourage the firm’s supply posit the following hypothesis derived to assess the relationship
chain resilience practices. of SCR and SC-Perf objectives influenced by DSC
technologies:

3.3 Effects of supply chain resilience practice and supply H5. DSC technologies competency moderates between
chain performance objectives supply chain resilience (SCR) on supply chain
Pettit et al. (2019) describe the evolution of resilience in supply performance objectives such that the effect is stronger
chain management. The effect of resilience on SC-Perf with higher competency.
depends on future business vulnerabilities, which results in the
enhancement of technology costs. Remko (2020) suggests a Ali et al.’s (2017) paper on SCR highlighted the comparison of
pathway to develop a more resilient supply chain in the industry the disruption significance in before, during and after phases.
to improve the firm’s performance post-COVID-19. Anderson et al. (2020) reveal how business is adapting to
Particularly in a time of crisis, businesses may not invest in such COVID-19. Nandi et al. (2020) adapt theoretical approaches
technologies as there is no guarantee of payback. According to to assess the firm’s responses to supply chain disruptions during
COVID-19 to improve their resources and capabilities such as
Um and Han (2020), supply chains with high resilience can
localization, agility and digitization by applying blockchain
handle supply chain risks effectively. It has been evident from
technologies. Queiroz et al. (2019) highlight that digital
the recent COVID-19 situation around the globe that the food
technologies such as blockchain with supply chain integration
and essential product supply chains have built resilience within
have the potential to disrupt the traditional healthcare,
their supply chains quicker than any other supply chains
transportation and retail industries. Sarkis (2020) finds that
because of collaborative effort. A similar message has been
sustainability and resilience are complements that require joint
highlighted by several other researchers in the context of
investigation post-COVID-19 scenario. Ivanov (2021) reveals
various supply chains (Agarwal and Seth, 2021; Sarkis, 2020;
the lean resilience framework using active usage of resilience
Sibanda and Ramanathan, 2019). Overall performance of
assets for post-COVID-19 supply chain management. Agarwal
supply chains is also enhanced through collaborative operations
and Seth (2021) analyze SCR barriers and their inter-
and transparent information which will help build a high level
connectivity in an Indian automotive company prior to the
of resilience across the supply chains (Ramanathan et al.,
pandemic situation. Um and Han (2020) find that SCR
2014). Based on the above discussions, we posit our next
capability plays a mediating role between supply chain risks and
research hypotheses for pre-COVID-19 and post-COVID-19
resilience. In line with the above literature, the current study
situations:
attempts to reveal pre- and post-COVID-19 impact on SCR
H4. The stronger the supply chain resilience practices, the practices with respect to SC-Perf, and the moderation effect of
higher the supply chain performance. DSC technologies on both SCR and SC-Perf. This study
considers the pre-COVID-19 pandemic outbreak lockdown
H4a. Supply chain resilience practice positively relates to situation where the respondents may have based their response
supply chain performance (pre-COVID-19 pandemic on the case of similar disruptions such as strikes and natural
outbreak lockdown situation). calamities. The survey was conducted in India, China and
Thailand where natural calamities are quite common, and the
H4b. Supply chain resilience practice positively relates to people encounter various types of disruptions time and time
supply chain performance (post-COVID-19 again. In this research, the post-COVID-19 pandemic outbreak
pandemic outbreak lockdown situation). lockdown situation (lifting of lockdown and reduction in
According to Zouari et al. (2020), the digitalization of the reported COVID cases) is measured to understand
supply chain does contribute to the resilience. Conversely, respondents’ expectations about DSC technologies as it is part
however, Singh and Singh (2019) describe the development of of the “during” and “after” phases of disruption. In the post-
business risk resilience against supply chain disruption events COVID-19 phase, respondents may require the right resilience
by developing big data analytics capabilities. Ju et al. (2020) ecosystem enabled with DSC technologies for swift business
show the moderating role of digital technology in the context of recovery. Hence, DSC technologies’ competency-influenced
relationships among integration quality, value co-creation and resilience practices were measured before and after the
resilience in the logistics service supply chain. Hence, to lockdown date declared by the respective government agencies
measure the SC-Perf objectives enabled by DSC technologies using the following hypotheses:
influenced by SCR, six measurement items have been drawn H5a. DSC technologies competency moderates the
from the literature such as reduced cost, speed of delivery relationship between supply chain resilience (SCR)
(Prajogo et al., 2016), dependability of firm’s service on supply chain performance objectives such that the
(Akkermans and Voss, 2013), reducing risks in supply chains/ effect is stronger with higher competency (pre-
distribution (Chowdhury et al., 2019), operations sustainability COVID-19 pandemic outbreak lockdown situation).
(Cousins et al., 2019) and end-customer satisfaction (Ellinger
et al., 2012). These six attributes may contribute differently H5b. DSC technologies competency moderates the
based on their level of operations; however, the nature of every relationship between supply chain resilience (SCR)
supply chain will indicate the level of requirement of the DSC on supply chain performance objectives such that the
technologies to increase the performance and, accordingly, the effect is stronger with higher competency (post-
objective will be set locally. Based on the above discussions, we COVID-19 pandemic outbreak lockdown situation).

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4. Research methodology locations, the surveys returned before and after lockdown dates
are 162 and 151, respectively.
In recent years, significant growth has been found in
automotive production from emerging markets as the
4.2 Questionnaire design
passenger and commercial vehicles supply to meet domestic
The survey questionnaire comprises two sections. The first
and export sales demand. To meet the demand within available
section evaluates the demographics of the participants such as
production capacity, automotive firms are compelled to focus
gender, age, firm location, firm age, firm size, length of work
on end-to-end supply chain management activities to optimize
experience, annual revenue and supply chain entity. The last
the cost and order to delivery (OTD) lead-time. Thus, swifter section contains all the scales measuring the constructs
recovery of end-to-end supply chain post-pandemic outbreaks proposed as per the research model in Section 3. In total, 50
is necessary to mitigate any major business impact. This study items measuring four constructs were identified and seven-
investigates the relationship among DSC technologies, SCR point Likert-type scales ranging from strongly disagree (1) to
and SC-Perf across automotive supply chain entities such as strongly agree (7) were used. The research instrument was first
OEMs, component suppliers and lead logistics service developed in English and then translated into Chinese to
providers (LLSPs). Emerging markets’ automotive supply communicate with China’s automotive firms. The Chinese
chain management professionals are sampled to gain their translation was introduced to ensure clarity, readability and
perceptions on the DSC technologies application to improve language equality (Brislin, 1986). The translation was initiated
their firms’ SC-Perf and role of DSC technologies to improve with a Chinese native senior supply chain manager specialized
SCR in supply chain disruption or pandemic outbreaks. In this in the area of the automotive field, followed by another
research, the data were collected through a survey approach academic member of Chinese origin, who specialized in the
called the total design method (Dillman, 1978), and the research area of management studies.
constructs are evaluated using multiple item measurement Both English and Chinese versions were then reviewed, and
(Gerbing and Anderson, 1988). necessary minor changes were made to ensure face validity.
The final English version of the questionnaire was then
4.1 Data collection uploaded online using Google drive. The online version was
Automotive supply chain professional details were collected then checked to overcome any operational errors. The final
from the confederation of the Indian Industry (CII), the China Chinese version of the questionnaire was emailed to all the
Association of Automobile Manufacturers (CAAM) and the participants who were asked to update and return a scanned
Thai Automotive Industry Association (TAIA). The database copy in case they had any difficulty completing the
included a list of 675 potential participants, most of the OEMs, questionnaire using the online English version. Before the
suppliers and LLSPs living in emerging markets working as formal launch of the survey, 10 respondents from the database,
supply chain and logistics management professionals who have comprising four from India and three each from China and
extensive experience in automotive supply chain planning, Thailand, participated in the pilot test. Telephonic discussion
inbound logistics, in-plant logistics and outbound logistics was conducted with respondents to assess the survey design,
domains. These participants were familiar with supply chain wording and flow content. Respondents gave positive verbal
technology applied in their respective domains. feedback regarding the same and the relevance of the
A questionnaire was developed using the survey scale questionnaire considering the supply chain disruption
development recommendations (Churchill, 1979). Based on measures they have undertaken.
the database, the survey was launched using a Google form and
invites were sent to the 675 participants using the purposive 5. Findings and results
sample method (Teddlie and Yu, 2007). The data collection The demographic data of the sample shown in Table 2
period was between December 2019 and May 2020, both highlights nearly equal responses from males (51%) and
before and after the COVID-19 epidemic outbreak lockdown females (49%). Most are between 31 and 50 years old (76%).
declared by the government in the respective location (India, Respondents who are specialized in automotive procurement,
China and Thailand) for automotive production. In China, the supply chain management and automotive logistics who are
national lockdown was declared on 23 January 2020 in Wuhan, based in China and Thailand share account for 41% each, and
Hubei province; in India, the lockdown was declared on 25 Indian respondents account for the remaining 18%. All the
March 2020, and in Thailand, a state of emergency was survey respondents have been working across automotive
declared on 26 March 2020. The pre-COVID-19 data supply chain entities – most are component suppliers (60%).
collection period is considered as December 2019 to January Respondent work experience for more than five years is about
2020 for China-based firms, and from December 2019 until 88%, and 95% of their firms are aged over five years, which are
the end of February 2020 for India- and Thailand-based firms. key indicators for both respondents’ and firm’s adaptability for
Similarly, post-COVID-19 data collection started from DSC transformation. Furthermore, 60% of the firms based in
February 2020 to May 2020 for China-based firms, and March emerging markets employ more than 500 staff and associates,
2020 to May 2020 for India- and Thailand-based firms. while 72% of the participating respondents’ firm’s annual
Including 10 pilot responses, the number of returned revenue is less than $US500m, which indicates the firm’s
questionnaire survey is 313, which gives a response rate of capability to invest in digital technologies.
about 46%. Based on the survey date stamp in comparison with Based on the survey date in consideration of COVID-19
lockdown or state of emergency declaration from the respective lock-down declared by each country’s government, 51% of

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Table 2 Demographic data

Survey questions Division/range No. of respondents % of response
Gender Female 151 48.24
Male 162 51.76
Age (in years) 20–30 66 21.09
31–50 240 76.68
>50 7 2.24
Firm location India 56 17.89
China 129 41.21
Thailand 128 40.89
Supply chain entity Supplier 188 60.06
LLSP 20 6.39
OEM 105 33.55
Work experience (in years) <5 38 12.14
5–10 121 38.66
11–15 82 26.20
>15 72 23.00
Firm age (in years) <5 18 5.75
5–25 184 58.79
26–50 83 26.52
>50 28 8.95
Firm size (in numbers) <500 125 39.94
501–1,000 52 16.61
1,001–5,000 65 20.77
>5,000 71 22.68
Annual revenue (in US$ million) 1–500 226 72.20
501–1,000 30 9.58
>1,000 57 18.21
Survey date in relation with lockdown Before 162 51.76
On or after 151 48.24

respondents completed the survey before lockdown and 49% of 26.0 (Anderson and Gerbing, 1988). Table 3 shows the CFA
the respondents completed the survey after lockdown. This results such as factor loadings range, composite reliability
indicator helps to assess the change in perceptions of (CR), average variance extracted (AVE), maximum shared
respondents pre- and post-COVID-19 lock-down situations variance (MSV) and average shared variance (ASV) against
from emerging markets’ automotive firms. each construct. In addition, model fit measures which confirm
To determine the correlation among the measurement items the reliability were applied; Chi Sq./df = 3.43 (<5),
in the data set, an exploratory factor analysis (EFA) statistical CFI = 0.956 and RMSEA = 0.08 (Hu and Bentler, 1999).
approach was used using SPSS 21.0. Data appropriateness was Although RMSEA values closer to zero represent a good fit,
checked through KMO statistics (0.957) and Bartlett’s test of considering that the CFI is 0.956 (greater than 0.9 cut-off for
sphericity was shown as significant (p < 0.001). It was noted a good fit), the resulting RMSEA score of 0.08 (against the cut-
that about 83% of variance was explained by four factors. off for a good fit < 0.08) may be accepted.
Because of higher cross-loadings, measurement items under All factor loadings were higher than 0.50 and significant at
DSC technologies competency such as decision-making p < 0.001, indicating high convergence (Hair et al., 2006).
capabilities using DSC technologies with the help of real-time Convergent validity was also supported in an examination of
data, volumes of data, variety of data and higher extent of the the composite reliabilities as CR values were greater than 0.7
usage of DSC technologies were removed. Deleting these (Hair et al., 2006) against each construct. The AVE for each
measurement items will not change the construct as the model construct was greater than 0.5, indicating support for
follows reflective measurement (Bollen and Lennox, 1991). All convergent validity. Also, MSV and ASV are less than AVE,
measurement items with their descriptive statistics are provided which confirms the discriminant validity against each
in Table 1. Cronbach’s alpha indicated equal to or above 0.944 construct. Thus, all the constructs satisfy the tests of reliability
against all four constructs. and validity.
Post-EFA, reliability and validity of the constructs were Before the structural model test, non-response bias was
evaluated using confirmatory factor analysis (CFA). In CFA, tested by random comparison of the first 20 responses and 20
the goodness of fit indicators, such as Chi-square divided by responses a month later for the SCR and SC-Perf constructs
degree of freedom (Chi Sq./df), comparative fit index (CFI) (Armstrong and Overton, 1977). No significant differences
and root mean square error of approximation index (RMSEA), were found in the assessment. Common method bias was
were used to evaluate the measurement model using AMOS checked through two methods. First, Harman’s single-factor

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Table 3 CFA Summary statistics

Range of Average Maximum Average
factor Composite variance shared shared
Construct loadings reliability extracted variance variance
DSC competency 0.601–0.997 0.972 0.819 0.541 0.449
DSC usage 0.770–0.999 0.976 0.893 0.508 0.414
Supply chain resilience 0.816–0.900 0.944 0.738 0.541 0.523
Supply chain 0.845–0.972 0.972 0.853 0.521 0.377
performance
Notes: Model fit index: Chi Sq./df = 3.433; CFI = 0.956 and RMSEA = 0.08

test was used. In the study, the largest variance explained by the interaction method (Cohen et al., 2003) was used. A cross-
any single factor was 31.74%. Second, the latent factor test was product term of DSC technologies competency with SCR
applied (Podsakoff et al., 2003). In this test, no loss in the was created (moderator A) with standardized values as variables
significance of the factor loadings was found by introducing a using SPSS 21.0. Then, using AMOS 26.0, variables such as
latent factor in the measurement model. Thus, these two tests SCR, DSC technologies competency and moderator A were
imply that common method bias is minimized. Dependent considered in assessing the effect for supply chain performance
variables of DSC technologies use and SCR practices act as (SC-Perf) objectives by computing standardized regression
independent variables to measure the overall SC-Perf estimates with significance.
objectives for the firm; hence, structural equation modeling Data analysis was conducted to measure the moderation
(SEM) is used in this research as a statistical analysis technique impact on SCR and SC-Perf objective relationships in line with
in comparison with other tools such as regression. Also, SEM the hypothesized relationship H5. H5a and H5b infer the pre-
provides a way to test the specified set of relationships among and post-COVID-19 pandemic outbreak lock-down response
observed and latent variables as a whole and allows theory and the moderating effect variations of DSC competencies
testing (de Carvalho and Chima, 2014). SEM was used to test measured over the SCR and SC-Perf relations. Table 5
the conceptual framework-hypothesized relationships as shown summarizes the effects of the moderation using the regression
in Figure 1. The structural model test resulted in the following estimates and their corresponding significance over SC-Perf.
SEM indices to prove the adequacy of the model. The results Table 5 shows that H5, H5a and H5b are highly significant
shown in these indices are Chi-square divided by degree of statistically (p < 0.001) with positive regression estimates of
freedom (Chi Sq./df =3.706), the Bentler comparison fit index 0.188, 0.172 and 0.194, respectively. This implies that DSC
(CFI = 0.951) and the RMSEA = 0.08. technologies competency does moderate the SCR and SC-Perf
At the p < 0.001 level, regression standardized weights were relations. Also, the moderation effect has increased post-
significant for the path from data quality to competency COVID-19 lockdown situation in comparison with the
development within DSC technologies competency construct; situation pre-COVID-19.
DSC technologies competency to DSC technologies use; DSC
technologies use to SC-Perf objectives; DSC technologies use
6. Research discussion and conclusions
to SCR; and SCR to SC-Perf objectives. Table 4 summarizes
the hypotheses with dependent and predictor variable relations, This research emphasizes the importance of DSC technologies,
path weights and p-values for the constructs. particularly during the current pandemic outbreak situation.
Table 4 infers that H1, H3 and H4 are statistically highly When human interaction is difficult, technologies can play a
significant (p < 0.001) with path weights of 0.683, 0.713 and greater role in improving SC-Perf. Also, this research closes the
0.717, respectively. H2 reflects the path weight of 0.008, with gap identified by Pettit et al. (2019) on the impact of resilience
no insignificant p-value (p > 0.05). The path weights for H4a on performance exclusively for the emerging markets’
and H4b reflect 0.694 and 0.734, respectively, with high automotive sector. Normally, resilience enhancement such as
statistical significance (p < 0.001). introducing advanced DSC technologies requires investment,
To test the moderation effect of DSC technologies and it is difficult to monetize the payback. Considering the
competency over SCR and SC-Perf objectives’ relations (H5), vitality of automotive sector growth in the emerging market

Table 4 Path weights of structural model

Hypotheses Dependent variable Predictor variable Path weights p-Value

H1 DSC usage / DSC competency 0.683
H2 Supply-chain performance objectives / DSC usage 0.008 0.894

H3 Supply-chain resilience practices / DSC usage 0.713

H4 Supply-chain performance objectives / Supply-chain resilience practices 0.717

H4a Supply-chain performance objectives / Supply-chain resilience practices (pre COVID-19 lock-down) 0.694

H4b Supply-chain performance objectives / Supply-chain resilience practices (post COVID-19 lock-down) 0.734
Notes: Model fit index: Chi Sq./df = 3.706; CFI = 0.951 and RMSEA = 0.08

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economy, this perception-based study compares the (Ivanov et al., 2019). Also, it answers the first research question
relationship of SCR and SC-Perf objectives during the normal in terms of how DSC technologies capability influences its use
supply chain disruption caused because of earthquakes, floods or practice in day-to-day operations in emerging markets’
and strikes, among other events, and a pandemic outbreak automotive firms.
situation (COVID-19). The current situation also acted as a DSC technologies empower the key business drivers such as
proof of concept to increase the usage of digital technologies to demand planning; capacity assessment and utilization; and
allow their workforce to work from home virtually for non- production and retailing optimization for automotive
place-dependent tasks during the lockdown period. These tasks operations to adapt and respond quickly post-disruption.
for the continuation of the business are design and Consumer buying patterns shift because of economic
development; sales and operations planning; procurement and uncertainty situations; for instance, new product technologies
supply chain; and finance and accounting functions. such as electric vehicles emerge to comply with the regulatory
DSC technologies competency influences automotive firms needs which cause demand stability concerns (Xiao et al.,
to use DSC technologies effectively in their day-to-day 2019). DSC technologies’ collaboration with business builds
operations. The mean value of DSC technologies measurement online retailing, inventory optimization and supply chain
items is over 5.0 – Table 1 highlights the data quality flexibility and visibility to allow required controls for
importance to develop the DSC technologies competency in automotive firms to increase operational efficiency with less
automotive firms. The role of data quality in supply chain cost. End-to-end supply chain visibility in the automotive
visibility provides insights on a real-time basis related to supply sector in the context of market position further enables supply
chain ordering, physical movement of materials and supplier chain planning improvement, strategic sourcing actions, parts
information. It enables the supply chain planning function by tracking or finished vehicles’ quality issues and swifter
using DSC technologies such as data analytics to extend to all responses to supply chain risks during pandemic outbreaks and
entities such as OEMs, component suppliers, LLSPs and other devastating events. These factors facilitate firms to enable
carriers to perform time-sensitive decisions and reduce errors to SCR drivers to increase SC-Perf objectives. DSC technologies
boost performance. Research also confirms that apart from data support data integration and connectivity to build and
quality, firms need to build more capabilities to respond to implement cloud-based digital platforms. They provide many
velocity, volume and variety (Ghasemaghaei, 2019). For benefits to automotive firms in terms of improving SC-Perf
example, in the event of a supply chain disruption, the with the standardized approach as follows: reduced data
automotive firm could sense the supply interruption and invoke inaccuracies and associated error costs; effective inventory
a business continuity plan to switch to alternative suppliers or management of finished vehicles; work-in-progress assemblies
adjust production schedules to meet the customer demands. and components; enhanced ability through scenario planning
Empirical research outcomes as per Table 4 highlight the to meet the customer demand; better tracking and
higher path weight for H1, which is 0.683 with higher transportation management; higher on-time and higher
significance (p < 0.001). DSC technologies such as BDA and utilization of deliveries; flawless order delivery, and receipt;
BCT interfere with multiple areas of the logistics and supply higher customer service levels; ability to anticipate and handle
chain industry. Automotive logistics, particularly in the risks wisely; manage vehicle recalls effectively on a needs basis
transportation business, is flawed by paperwork involving a according to severity level; fix root causes; and build an
greater number of stakeholders such as customs, warehousing improved demand forecasting. These findings confirm that
and distribution. In the traditional supply chain process, the digital technologies allow information exchange within or
operation is sequential and complex, which requires waiting across supply chain entities to play a dominant role in supply
time at each stage, and also increases the total turnaround time. chain operations, similar to health-care entities (Mandal,
Considering smart contracts used in BCT, contract 2018).
management across supply chain partners including payments In this research study, the use of DSC technologies
is taken care of easily. BCT promotes transparency and supply relationship to increase a firm’s SC-Perf objectives and improve
chain efficiency by logging transactions which in turn increases SCR practices is shown in H2 and H3, respectively. In addition,
the visibility for firms to track their product precisely from its the firm’s practice to improve SCR practices increases the SC-
source to destination. This shows that using such supply chain Perf objectives shown in H4, which supports the literature
technologies makes firms to achieve both perceived findings (Remko, 2020) As per Table 4, standardized estimates
“usefulness” and “ease of use” with greater involvement from for H2, H3 and H4 are 0.008, 0.713 and 0.717, respectively.
top management. Thus, the empirical research outcome One of the research outcomes indicates that DSC
confirms H1 from the theoretical framework that DSC technologies practice does not directly influence the SC-Perf as
technologies competency positively relates to DSC H2 shows lower path-weight (0.008) and is not statistically
technologies practices implemented by the automotive firms significant (p > 0.05). This finding contrasts with the literature

Table 5 Moderation effects – estimates and significance

Hypotheses Dependent variable Moderating effect Estimates p-Value

H5 Supply-chain performance objectives / Moderator A: SCR  DSC competency 0.188

H5a Supply-chain performance objectives / Moderator A: SCR  DSC competency (pre-COVID-19 lock-down) 0.172

H5b Supply-chain performance objectives / Moderator A: SCR  DSC competency (post-COVID-19 lock-down) 0.194

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outcome (Haddud and Khare, 2020). It implies that technologies that influenced resilience practices are higher in
automotive firms based in emerging markets are yet to use. This answers the second research question.
completely undergo DSC technologies transformation. This is This research also extends to examine the DSC technologies
possibly because of legacy systems used in the current IT competency of the automotive firms as a moderating variable in
infrastructure, proliferation of software systems used with the the relationship between SCR practices and SC-Perf objectives
existing standards, data interface and exchange bottlenecks, to determine its standardized value. This is to understand the
higher investment costs of connectivity software assets and practitioner’s perceptions when they interpret DSC
equipment, lack of in-house competencies and cybersecurity technologies competency role although these technologies are
risk issues. Also, it may be too early for the firms which realized not or are only partially used in the automotive firms. H5 shown
the direct performance benefits to consider full in Table 5 indicates the regression standardized estimates
implementation. Moreover, Table 2 shows that local shown for the moderator variable as 0.188 with high statistical
component suppliers account for 60% of the survey significance (p < 0.001).
respondents from emerging markets. It shows that auto Based on the statistical outcome, it is evident that DSC
suppliers possibly will be meeting the cost targets set by OEMs technologies competency moderates the relationship between
to stay competitive in business and improve the firm’s SCR and SC-Perf objectives with a positive effect. To assess the
performance by focusing on localization and productivity moderator variable (DSC technologies competency) relations
improvement rather than introducing digital technology needs. with SCR and SC-Perf objectives, before and after the COVID-
Thus, in the present situation, DSC technologies used by 19 lockdown situation, H5a and H5b were introduced as shown
automotive firms do not relate positively with SC-Perf in Table 5. Standardized estimate details are shown as 0.172
objectives. and 0.194 with statistically high significance (p < 0.001). This
Regarding the DSC technologies use on resilience practices implies that the path weight of H5b is greater than H5a (H5b >
in the supply chain, the H3 relation shows the path weight as H5a), which means that DSC technologies competency
0.713 with statistically high significance (p < 0.001) as shown moderates higher in the post-COVID-19 situation in
in Table 4. The perceptions of respondents confirm that the comparison with the pre-COVID-19 situation. Considering
DSC technologies use positively relates to managing resilience H5, H5a and H5b result outcomes, DSC technologies
practices. The present COVID-19 pandemic situation crisis competency acts as a moderator variable for emerging markets’
may accelerate digital transformation across the supply chain to automotive firms, which answers the third research question.
bring the manufacturing and logistics opportunities using DSC In supply chain disruption or pandemic outbreak situations,
technologies as follows: real-time visibility; connectivity using business agility is critical for faster response to the market. DSC
the IoT; digital contracts and freight booking; dynamic asset technologies from automotive firms allow consumers to track
management through network planning tools;contactless and and trace their product in the OTD window time. An example
paperless goods delivery processes; building RPA as part of the of this is when consumers purchase any fast-moving consumer
digital workforce; and automated handling and warehouse goods from Amazon or Alibaba websites. Hence, DSC
management. Hence, the automotive firms are implementing technologies drive innovation for consumers. They can allow
and using the DSC technologies benefits to deal with resilience consumers to track and trace the OTD for product or service
practices. deliveries. Automotive firms may also explore the usage of AI to
DSC technologies that influenced SCR practices in build end-to-end supply chain visibility, extract inference from
automotive firms positively relate with SC-Perf objectives as generated data at each operational stage and develop scenario
per the H4 relation, which shows the path weight as 0.717 with planning using insights on a real-time basis from big data for
statistically highly significance (p < 0.001) as shown in Table 4. making effective decisions. The ongoing situation of the
It also indicates the importance of the automotive business-to- COVID-19 pandemic outbreak carries more vulnerability
business (B2B) relationship to deal with disruption or challenges in the global automotive supply chain. Digital
pandemic outbreak situations to improve SC-Perf objectives technologies allow the firm’s transformation through the
using DSC technologies as DSC technologies support shared prediction of supply chain visibility for multiple tiers of the
information across supply chain partners to enable effective supply base with corresponding locations for effective decision-
decision-making. In the pandemic outbreak situation, DSC making. Also, these technologies attempt to bring more
technologies may improve innovation practices for quicker transparency, high resilience over the supplier network and
operations recovery across the automotive industry ecosystem geography and allow proactive and collaborative
which consists of OEMs, first- and second-tier component communication. To improve SC-Perf, this research suggests
manufacturers, LLSPs that deal with multiple modes of that automotive firms invest in digital technologies to get the
transport operations such as air, sea, rail and road, leasing right pay-off from pandemic outbreaks apart from
companies, energy suppliers and IT infrastructure providers. regionalization or localization opportunities to minimize the
Thus, in the emerging market automotive firms, DSC supply chain disruption impact. In summary, COVID-19
technologies influences are increasing in nature over SCR revealed more vulnerabilities in the automotive supply chain, so
practices to improve SC-Perf objectives. To assess the relations adopting DSC technologies is one of the solutions for better
before and after the COVID-19 lockdown situation, H4a and agility and to minimize the business impact for effective supply
H4b were introduced as shown in Table 4. Path-weight details chain recovery.
are shown as 0.694 and 0.734, and thus statistically highly In comparing the TAM with the research hypotheses
significant (p < 0.001). This implies that the path weight of H4b outcomes, automotive firms in emerging markets were inclined
is greater than H4a (H4b > H4a), which means that DSC to adopt DSC technologies based on both perceived usefulness

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Balakrishnan A.S. and Usha Ramanathan Volume 26 · Number 6 · 2021 · 654–671

and ease of use. This empirical study assessment from the are used, the higher the improvement in SCR practices during
emerging markets auto sector is a primary research supply chain disruptions. Also, the firm’s ability to improve
contribution for academicians, researchers and practitioners. with DSC technologies helps them to recover quickly from
H2 reflects that investing in such technologies will not directly disruptions and improves the business performance. The
result in the SC-Perf improvement. This is a clear gap that the findings also indicated the moderating effect of DSC
research identified between the academic literature and technologies competency on SCR practices and SC-Perf
emerging markets’ firms’ practices. Perhaps, the ongoing objectives over the long term in dealing with the COVID-19
COVID-19 pandemic outbreak situation (or) other future pandemic outbreak event for the emerging markets’ automotive
disruptive events such as trade tension or force majeure may sector. DSC technologies contribute to the success of supply
change the situation as DSC technologies contribute to chain visibility through synchronizing and data connectivity –
improving SC-Perf beyond SCR aspects (Ivanov et al., 2019; the lack of the same will result in delay in resuming operations,
Remko, 2020; Zouari et al., 2020). customer complaints, lack of revenue from product shortages,
higher inventory and freight costs, delayed cash flow and
7. Managerial implications decrease of productivity. Hence, to stay competitive,
automotive firms need to prepare for broader supply chain
Research conclusions confirm that adapting the DSC visibility and data-sharing across entities.
technologies influenced resilience practices to improve the SC- In the COVID-19 pandemic outbreak situation, it is obvious
Perf objectives during pandemic outbreak situations (e.g. that DSC technologies might support supply chain risk
COVID-19) and other supply chain disruption events in the mitigation actions such as extending the supply chain visibility
emerging markets’ automotive sector. Automotive supply chain focus beyond Tier-1 supplier risk; building strong scheduling
professionals have recognized that the DSC technologies flexibility by prioritizing high-margin product shortages;
competency and practices in firms as well as in their supplying developing transparency with carriers to secure the
firm allow operations to recover swiftly. The DSC technologies transportation capacity; exploring the alternate source of parts
bring out business agility for quicker response to market when a supply; and prescribing the analytics solutions to assess the
pandemic situation occurs. Emerging markets’ automotive post-COVID-19 impact associated with social, economic and
firms procure components or raw materials from their supply natural reasons for firms to make timely decisions. It is
chain partners based at domestic and overseas supply bases. To necessary for firms to create an enterprise team to manage the
perform resilience practices in the supply chain, this research adoption and institutionalization of DSC technologies and
elaborates on the DSC technologies competency and firm’s corresponding business process updates. Alternatively, firms
adaptability to use or practice this on a day-to-day basis while can obtain support from service providers who already have the
dealing with supply chain disruption. Hence, implementing technical capabilities and business know-how on supply chain
and practicing DSC technologies across emerging markets’ connectivity.
automotive firms facilitates data sharing, and enables buy,
produce and sell actions in a swift manner and to restore the
situation to a normal state. The managerial implications for
8. Limitations and scope for future research
introducing and maintaining DSC technologies for automotive The study has limitations because it is specific to emerging
firms are as follows: markets’ automotive sector and perception-based research
First, it is necessary to include the IT team in strategizing approach applied in the midst the COVID-19 pandemic
DSC technologies need immediately after finalizing the outbreak situation. Market-wise individual assessment is
business strategy. The IT team can support top management to limited because of the lower sample size from three different
identify the various DSC technologies options that are available markets in two different periods. The research outcome cannot
on the market which suit the firm’s goals and requirements. be generalized across other nations or other industrial sectors.
Second, DSC technologies improve SCR practices through Before applying it to other nations and industries, it needs to be
increasing visibility, flexibility, agility and collaboration. further tested and expanded. However, it will be useful to the
Building an integrated data ecosystem eliminates information supply chain professionals from other nations and industries to
silos and other duplication efforts. It produces a single source of learn and adapt the relevant practices on DSC technologies.
truth based on the shared and integrated data that induce speed The adaption and learning will be useful in the concurrent and
in making decisions to restart the business across the supply post-disruptions phases, as it will increase the speed of response
chain. Last, to resume the operations after supply chain to implement SCR practices to achieve long-term SC-Perf
disruption or pandemic outbreak situation, emerging markets’ objectives.
automotive firms may follow the return-to-work readiness The research contributions from this study open further
checks with the help of DSC technologies with greater data research opportunities. In the automotive sector, disruptive
quality. It allows firms to build stronger B2B relationships and supply chain and logistics technologies such as using the UAV
supports firms to follow communication, cooperation, clarity of or drones for transporting small packages, which transform the
demand forecasting, inventory status and other initiatives to delivery process, may be explored. Conducting this research
boost the commitment and assurance with their supply chain marketwise in emerging markets may give more insights
partners. considering OEMs and domestic component manufacturers.
The research findings highlight that DSC technologies Also, studying the DSC technologies’ influence on the overseas
generate value when the firm perceives their usefulness. It has supply base may help further in the experimental aspects of the
been evident from the findings that the more DSC technologies discussion. It is suggested that future researchers explore the

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Balakrishnan A.S. and Usha Ramanathan Volume 26 · Number 6 · 2021 · 654–671

DSC technologies followed in other industries medium enterprises”, Production Planning & Control, Vol. 31
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