Digital supply chains in omnichannel retail: A conceptual framework

Abstract

AbstractThis inductive research provides a deeper understanding of the digital transformation of retail supply chains and its underlying impact on supply chain strategy and operational structure. In this context, we develop a conceptual framework of digital retail supply chains to identify the key elements and their interactions. We offer a theoretically derived explanation of the ecosystem characterization of digital supply chains and show how retail supply chains fit this characterization. The supply chain ecosystem provides retail firms a way to strategize an organizational outlook that enables digitization of conventional supply chain processes. We find that emerging digital supply chains harness corporate digital awareness to operate within an ecosystem that iteratively guides the digital transformation process. The subsequent analysis highlights a digital transformation process that incorporates real‐time reporting, speed of discovery/action, visibility across the enterprise, and flexibility to react to environmental changes. Consequently, these contributing elements enable executional flexibility that is the hallmark of digital supply chains. We conclude by theorizing relevant research propositions that describe relational connections among the constituent elements of the digital supply chain framework and offer avenues for future research.