The effect of digital supply chain on lean manufacturing: A structural equation modelling approach

Abstract

This study aimed to test the impact of digital supply chains on lean manufacturing, the digital supply chain was a multidimensional measurement composed of seven dimensions: Digital performance management, digital information technology and digital manufacturing, digital human resources, digital suppliers, digital logistics and inventory and digital clients. The electronic industries companies were targeted to represent the research population and collect the primary necessary data. According to the research budget and time constraints, a convenience sampling method was implemented in the data collection process. Structural equation modeling (SEM) was applied to test the research hypotheses through AMOS software. The results indicated that most of the digital supply chain dimensions had a positive impact on lean manufacturing, except digital suppliers and digital clients, which had no effect on lean manufacturing. Findings from this research help organizational managers make multiple decisions related to investing and allocating resources to increase profit and reduce expenses along digital supply chains.