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Leveraging digital technology capability for circular economy innovation in the food products supply chain: a mixed-method study

Bag, S, Rahman, MS, Singh, A, Bryde, D and Graham, G (2024) Leveraging digital technology capability for circular economy innovation in the food products supply chain: a mixed-method study. IEEE Transactions on Engineering Management. pp. 1-34. ISSN 0018-9391

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Abstract

Our study aims to enhance the understanding of how digital technologies function as a dynamic capability in order to improve digital circular economy (CE) innovation and food products supply chain (FSC) performance. In particular, we examine the moderating effect of absorptive capacity (AC), which remains under-studied in the sustainable operations management literature. We followed an explanatory sequential mixed-method design in this study with two main phases. In the first phase, we developed a model based on a review of the extant literature review, which was grounded in the Dynamic Capability View. We then statistically analyzed the model, using data collected from 623 respondents working in the food products and allied industries industry sector. In the second phase, primary data were collected from interviews with 10 practitioners working in 5 companies in that industry sector and secondary data from the company documents. This qualitative data was used to test the relevance and practical applicability of the model developed in the first phase. Using Structural Equation Modelling, our developed model provides empirical evidence to show that digital technology capability in the FSC positively influences digital CE innovation. We further show that AC moderates the relationship between digital technology capability in FSC and digital CE innovation. Thematic analysis of the interview data confirms digital technology capability as a higher-order capability, comprising of digital sensing, digital seizing, and digital transformation capabilities, and that digital technology knowledge absorption is a technically focused AC. The analysis further confirms the relationships between digital technology capability, digital CE innovation, and enhanced FSC performance. Managerial relevance statement: Our findings offer practical guidance to supply chain managers in configuring appropriate resources to build dynamic (digital technology) capabilities, which would help them to “sense, seize, and transform” organizational resources and improve performance. Further, managers of business operations in the FSC should concentrate on improving their organization’s AC in order to acquire and digest external data. Our study adds to the literature by shedding light on the nuanced relationships between digital technology capability in the FSC, AC, digital CE innovation, and FSC performance.

Item Type: Article
Additional Information: © 2024 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.
Uncontrolled Keywords: 08 Information and Computing Sciences; 09 Engineering; 15 Commerce, Management, Tourism and Services; Business & Management
Subjects: H Social Sciences > HF Commerce > HF5001 Business
Divisions: Liverpool Business School
Publisher: Institute of Electrical and Electronics Engineers
SWORD Depositor: A Symplectic
Date Deposited: 30 Jul 2024 09:40
Last Modified: 13 Aug 2024 10:45
DOI or ID number: 10.1109/TEM.2024.3435750
URI: https://researchonline.ljmu.ac.uk/id/eprint/23816
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