Enhancing global supply chain distribution resilience through digitalization: Insights from natural resource sector of China

Abstract

The steel industry, a cornerstone of the global economy, is linked to the extraction of iron ore and natural resources, serving as a critical driver of mining activities worldwide. This interdependence underscores its reliance on natural environment for raw materials and also highlights the significant environmental footprint associated with these extraction processes. Supply chains of this sector face unique challenges and opportunities in the digital age, where the integration of innovative technologies can lead to enhanced efficiency, transparency, and resilience. This study aims to explore the role of digitalization in strengthening the resilience of global supply chains, with a particular focus on the steel industry. It also investigates the influence of green policies as a potential moderating factor on the impact of digitalization on supply chain resilience. Focusing on steel sector of China, this research derives insights from data collected from 179 experts in the field, employing Partial Least Squares Structural Equation Modelling (PLS-SEM) for analysis. Our key findings reveal that digitalization can profoundly enhance global supply chain distribution resilience. This includes improvements in operational efficiency, risk management, and adaptability to market fluctuations and geopolitical tensions. Digital tools and platforms enable real-time monitoring, predictive analytics, and enhanced communication across the supply chain, contributing to more robust and responsive operations. However, contrary to initial hypotheses, the study finds that green policies do not significantly moderate the relationship between digitalization and supply chain resilience. This suggests that while environmental regulations are crucial for sustainable development, their direct impact on enhancing the resilience of supply chains through digital means is limited. The implications highlight that for the steel sector, digitalization can play critical role in achieving greater global supply chain distribution resilience. This calls for increased investment in digital infrastructure and capabilities, alongside a strategic focus on integrating digital technologies across supply chain operations. Additionally, the findings prompt a re-evaluation of green policies, suggesting that while they are essential for sustainability, their role in facilitating supply chain resilience through digitalization may require further exploration and innovative approaches.