Digital Readiness as a Mediating Capability for Data-Driven Supply Chain Digitalization

Abstract

Digital transformation of supply chains is critical for enhancing visibility and resilience, particularly within fragmented logistics networks in emerging economies. In Indonesia’s dispersed archipelagic environment, Logistics Service Providers (LSPs) contend with fragmented digital infrastructure, limited data interoperability, and uneven adoption of digital systems, which constrain timely information sharing and cross-organizational coordination. From an information systems perspective, this study examines how organizational and technological capabilities enable data-driven supply chain digitalization through digital readiness. Anchored in Dynamic Capabilities Theory (DCT), this study introduces a capability–readiness framework in which DCA and DOC foster Supply Chain Digitalization (SCD) via Digital Readiness (DRE). Analysis of survey responses from 288 managerial participants representing logistics service providers, using PLS-SEM, indicates that both DCA and DOC contribute positively to DRE. Furthermore, DCA directly enhances SCD, whereas the effect of DOC on SCD is realized entirely through DRE. This study advances current understanding by demonstrating how DRE as a dynamic system-level capability facilitate interoperable digital integration, timely information sharing, and informed operational decisions across logistics ecosystems. The study offers actionable guidance for managers and policymakers in designing initiatives that strengthen digital competencies, data standardization, interoperable systems, and integrated digital processes in accelerating supply chain digitalization in emerging economies.