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The impact of digital technologies in improving supply chain resilience: An exploratory study in the agri-food industry
Dao, Luong
Dao, Luong
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2024-05
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Business Administration/Interdisciplinary
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http://dx.doi.org/10.34944/dspace/10284
Abstract
Globalization, geopolitics, and socio-economic uncertainties increase supply chain vulnerabilities. Climate changes, natural disasters, and man-made accidents have increased the tension of disturbances. The COVID-19 pandemic has disrupted many supply chains worldwide, putting the agri-food supply chain at a higher risk than ever. Agri-food supply chains face severe and complex challenges due to industry-specific characteristics, such as perishability, short shelf life, long lead time production, and weather dependence. Consumer awareness of having healthy, traceable, and environmentally friendly food products has become an increasing concern, making sustainable development also a vital factor in the agri-food industry. To ensure sustainable development, firms must improve supply chain resilience by discovering, nurturing, and developing resilience capability and competitive advantage. Resilience describes the ability to respond quickly to disruptions and help the supply chain recover. Recently, digital technologies have developed rapidly, supported by the Industrial Revolution 4.0, which plays a crucial role in a company's operations. Digital technologies help promote core resilience competencies such as visibility, collaboration, and agility through typical technologies such as blockchain, artificial intelligence, fifth-generation technology, big data analytics, additive manufacturing, tracking, tracing technologies, etc. This study uses a theoretical framework from dynamic capabilities and extant literature reviews to determine the research gap in the agri-food industry. The study uses mixed methods: a qualitative research method to examine and uncover the role of supply chain resilience in responding to disruptions in the agri-food industry, and a second study used a quantitative method to examine the influence of digital technologies on resilience in the agri-food supply chain. This study confirms the critical role of resilience in the agri-food supply chain and the significance of digital technologies in improving supply chain resilience and firm performance. The study also suggests that a firm should proactively build its resilience capability rather than learn from past disruptions.
The findings are useful for academics and practitioners alike, in the acknowledgment of the significant effects of digital technologies on supply chain resilience in the agri-food industry. Some technologies are not agri-food specific but have a place in the industry, while others are tailor made for farming applications. Parties in the agri-food industry must take advantage of Industrial Revolution 4.0 and digital technologies to flourish in the agri-food industry.
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