Data-driven capabilities, supply chain integration and competitive performance

Abstract

Purpose The purpose of this paper is to analyze the effects of data-driven capabilities on supply chain integration (SCI) and competitive performance of firms in the food and beverages (F & B) industry in Pakistan. Design/methodology/approach The authors adopt the structural equation modeling approach to test the proposed hypotheses using AMOS 23. Survey data were collected from 240 firms in the F & B industry in Pakistan. Findings The results revealed that SCI (i.e. internal integration (II) and external integration (EI)) significantly mediates the effect of data-driven capabilities (i.e. flexible information technology resources and data assimilation) on a firm’s competitive performance. In addition to the direct effects, II also has an indirect effect on competitive performance through EI. Practical implications The study has several implications for managers in the context of big data application in food supply chain management (FSCM) in a developing country context. The study posits that firms can achieve excellence in performance by governing data-driven supply chain operations. The study also has implications for distributors and importers in the F & B industry. The cloud-based sharing of data can improve the operational performance of channel members while reducing their overall cost of operations. In practice, food franchises largely get the advantage of shared resources of their suppliers in managing orders, payments, inventory and after-sales services. Originality/value The study is novel and deepens the understanding about the use of big data in FSCM keeping in view the industry trends and stakeholder’s priorities in a developing country context.