Barriers to Digital Supply Chain Management: A Qualitative Research

Year 2024, , 28 - 42, 28.06.2024

Deniz Deral , Şirin Gizem Köse , İpek Kazançoğlu

https://doi.org/10.51803/yssr.1480396

Abstract

Digital supply chain management generate competitive advantage by enabling companies to become more efficient and transparent in compliance with technological developments at every stage of the supply chain by meeting customer needs better. However, enterprises may encounter various barriers in the digitalization of the supply chain. The aim of the study is to identify the barriers encountered in the digital transformation of the supply chain and to discuss solutions or solving these barriers. Themes were obtained by content analysis from the data collected by in-depth interview method from industry professionals.

Keywords

supply chain, digital transformation, digitalization, barriers

References

• REFERENCES
• Agostini, L., Nosella, A., &Teshome, M. B. (2019). Inter-organizational relationships: toward a reconceptualization of constructs. Baltic Journal of Management, 14(3), 346–369. [CrossRef]
• Agrawal, P. &Narain, R. (2018). Digital supply chain management: An Overview. IOP Conf. Series: Materials Science and Engineering, 455, 1–7. [CrossRef]
• Agrawal, P., &Narain, R. (2023).Analysis of enablers for the digitalization of supply chain using an interpretive structural modelling approach. International Journal of Productivity and Performance Management, 72(2), 410– 439. [CrossRef]
• Aityassine, F., Aldiabat, B., Al-rjoub, S., Aldaihani, F., Al-Shorman, H., & Al-Hawary, S. (2021).The mediating effect of just in time on the relationship between green supply chain management practices and performance in the manufacturing companies. Uncertain Supply Chain Management, 9(4), 1081–1090.
• Al-Khawaldah, R., Al-Zoubi, W., Alshaer, S., Almarshad, M., ALShalabi, F., Altahrawi, M., & Al-Hawary, S. (2022). Green supply chain management and competitive advantage: The mediating role of organizational ambidexterity. Uncertain Supply Chain Management, 10(3), 961–972. [CrossRef]
• Alotaibi, S., &Mehmood, R. (2018). Big data enabled healthcare supply chain management: opportunities and challenges. In Smart Societies, Infrastructure, Technologies and Applications: First International Conference, SCITA 2017, Jeddah, Saudi Arabia, November 27–29, 2017, Proceedings 1. Springer International Publishing, 207–215. [CrossRef]
• Annosi, M. C., Brunetta, F., Bimbo, F., &Kostoula, M. (2021). Digitalization within food supply chains to prevent food waste. Drivers, barriers and collaboration practices. Industrial Marketing Management, 93, 208–220. [CrossRef] Arya, V., Sharma, P., Singh, A., & De Silva, P. T. M. (2017). An exploratory study on supply chain analytics applied to spare parts supply chain. Benchmarking: An International Journal, 24(6), 1571–1580. [CrossRef] Attaran, M. (2020). Digital technology enablers and their implications for supply chain management. Supply Chain Forum:An International Journal, 1–16.
• Bag, S., Viktorovich, D. A., Sahu, A. K., &Sahu, A. K. (2020). Barriers to adoption of blockchain technology in green supply chain management. Journal of Global Operations and Strategic Sourcing, 14(1), 104–133. [CrossRef]
• Bhargava, B., Ranchal, R., &Othmane, L. B. (2013, February). Secure information sharing in digital supply chains. In 2013 3rd IEEE international advance computing conference (IACC). IEEE, 1636–1640. [CrossRef]
• Bienhaus, F. &Haddud. A. (2018). Procurement 4.0: Factors Influencing the Digitization of Procurement and Supply Chains. Business Process Management Journal 24(4), 1–21. [CrossRef] Bigliardi, B., Bottani, E., Casella, G., Filippelli, S., Petroni, A., Pini, B., &Gianatti, E. (2023). Industry 4.0 in the agrifood supply chain: a review. Procedia Computer Science, 217, 1755–1764. [CrossRef]
• Bottalico, A. (2021). The logistics labor market in the context of digitalization: Trends, issues and perspectives. Digital Supply Chains and the Human Factor, 111–124. [CrossRef]
• Büyüközkan, G.&Göçer, F. (2018). Digital supply chain: Literature review and a proposed framework for future research. Computers in Industry, 97, 157–177. [CrossRef]
• Bruemmer, D. (2016). The automation of the construction industry. Construction Business Owner Magazine, 2, 1–5.
• Canbaz, E., Vural, S. Ç.,Çelik, C., &Çemberci, M. (2022). The Role of Supply Chain Transparency among Supply Chain Analytics Capabilities.Journal of International Trade, Logistics and Law, 8(2), 191–200.
• Castorena, O. H., Enríquez, L. A., &Adame, M. G. (2014). The influence of information technology and communication supply chain management performance for greater SME manufacturing in aguascalientes. International Journal of Business, Economics and Management, 1(12), 382–396.
• Chase, C. (2019). How the digital economy is impacting the supply chain. Journal of Business Forecasting, 38(2).
• Cichosz, M. (2018). Digitalization and competitiveness in the logistics service industry. e-mentor, 77(5), 73–82. [CrossRef]
• Collis, J. & Hussey, R. (2014). Business research: a practical guide for undergraduate & postgraduate students. (4th ed.). Palgrave Macmillan.
• De Casterlé, B. D., Gastmans, C., Bryon, E., & Denier, Y. (2012). QUAGOL: A guide for qualitative data analysis. International Journal of Nursing Studies, 49(3), 360–371. [CrossRef]
• De Vass, T., Shee, H., & Miah, S. (2021). IoT in supply chain management: Opportunities and challenges for businesses in early industry 4.0 context. Operations and Supply Chain Management: An International Journal, 14(2), 148–161. [CrossRef]
• Dixit, V., K., Malviya, R., K., Kumar, V. & Shankar, R. (2024).An analysis of the strategies for overcoming digital supply chain implementation barriers. Decision Analytics Journal, 1–64. [CrossRef]
• Drisko, J. W., & Maschi, T. (2016). Content analysis. Oxford University Press. [CrossRef]
• Erol, S., Schumacher, A., &Sihn, W. (2016, January).Strategic guidance towards Industry 4.0–a three-stage process model. International Conference on Competitive Manufacturing, 9 (1), 495–501. Frank, A. G., Dalenogare, L. S. & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210, 15–26. [CrossRef]
• Ghadge, A., Er Kara, M., Moradlou, H., & Goswami, M. (2020).The impact of Industry 4.0 implementation on supply chains. Journal of Manufacturing Technology Management, 31(4), 669–686. [CrossRef]
• Haddud, A., DeSouza, A., Khare, A., & Lee, H. (2017). Examining potential benefits and challenges associated with the Internet of Things integration in supply chains. Journal of Manufacturing Technology Management, 28(8), 1055– 1085. [CrossRef] Hartl, E., & Hess, T. (2017). The role of cultural values for digital transformation: Insights from a Delphi study.Twenty- third Americas Conference on Information Systems, 1–10.
• He, J., Du, X., &Tu, W. (2024). Can corporate digital transformation alleviate financing constraints?.Applied Economics, 56(20), 2434–2450. [CrossRef]
• Hinze, G., Kaza, S., Sung Kown, O., Leopoldseder, M., &Weig, F. (2011, Autumn). From source to drain: Fixing the supply chain. McKinsey on Semiconductors, 42–49.
• Hirsch-Kreinsen, H. (2016). Digitization of industrial work: development paths and prospects. Journal for Labour Market Research, 49(1), 1–14. [CrossRef] Helo, P., & Shamsuzzoha, A. H. M. (2020). Real-time supply chain—Ablockchain architecture for project deliveries. Robotics and Computer-Integrated Manufacturing, 63, Article 101909. [CrossRef]
• Jacobs, R. 0& Chase, R. (2014). Operations and supply chain management. (14th ed.). McGraw-Hill,
• Kache, F. & Seuring, S. (2017). Challenges and opportunities of digital Information at the intersection of big data analytics and supply chain management. International Journal of Operations & Production Management, 37(1), 10–36. [CrossRef]
• Kamble, S. S., Gunasekaran, A., & Sharma, R. (2018).Analysis of the driving and dependence power of barriers to adopt industry 4.0 in Indian manufacturing industry. Computers in Industry, 101, 107–119. [CrossRef]
• Khajavi, S. H., Partanen, J., Holmström, J., & Tuomi, J. (2015). Risk reduction in new product launch: A hybrid approach combining direct digital and tool-based manufacturing. Computers in Industry, 74, 29–42. [CrossRef] Khanna, P., & Sharma, A. (2017, March).Integrating SCM with internet of things: implication on HR management. In Proceedings of the Second International Conference on Internet of things, Data and Cloud Computing , 1–13. [CrossRef]
• Kiel, D., Muller, J., Arnold, C., & Voigt, K., I. (2017). Sustainable Industrial Value Creation: Benefits and Challenges of Industry 4.0. In: ISPIM Innovation Symposium. The International Society for Professional Innovation Management (ISPIM). [CrossRef]
• Kiel, D., Muller, J., Arnold, C., & Voigt, K., I. (2017). Sustainable Industrial Value Creation: Benefits and Challenges of Industry 4.0. ISPIM Innovation Symposium. The International Society for Professional Innovation Management 21(08), Article 1740015. [CrossRef]
• Kinnet, J. (2015). Creating a Digital Supply Chain: Monsanto’s Journey, SlideShare, 1–16. http://www.slideshare.net/BCTIM/creating-a-digital-supplychain-monsantos-journey.
• Kirkland, R. (2014, May). The flow of trade: An interview with H. Ray Bingham. Insights & Publications. McKinsey & Company. http://www.mckinsey.com/insights/manufacturing/the_flow_of_trade_an_interview_with_h_ray_bingham.
• Krippendorff, K. (2013). Content analysis: An introduction to its methodology. Sage Publications.
• Lacey, A., & Luff, D. (2001). Qualitative data analysis (pp. 320–357). UK: Trent Focus Group.
• Lara-Cabrera, R., Gonzalez-Pardo, A., & Camacho, D. (2019).Statistical analysis of risk assessment factors and metrics to evaluate radicalisation in Twitter. Future Generation Computer Systems, 93, 971–978. [CrossRef]
• Lee, J.Y., Yoon, J.S., & Kim, B.H. (2017), A big data analytics platform for smart factories in small and medium-sized manufacturing enterprises: An empirical case study of a Die casting factory, International Journal of Precision Engineering and Manufacturing, 18, 1353–1361. [CrossRef]
• Linh, N., P,, K., Kumar, V. &Ruan, X. (2019). Exploring enablers and opportunities to digital supply chain management in Vietnamese manufacturing SMES. Organizational Business Excellence, International Journal of Organizational Business Excellence, 2(2), 101–120. [CrossRef]
• Luthra, S., &Mangla, S. K. (2018). Evaluating challenges to Industry 4.0 initiatives for supply chain sustainability in emerging economies. Process Safety and Environmental Protection, 117, 168–179. [CrossRef]
• Manyika, J. (2014, April). The flow of value: An interview with Michael Spence. Insights & Publications, McKinsey & Company. http://www.mckinseycom/insights/operations/the_flow_of_value_an_interview_with_michael_spence.
• Martin, J., Dustman, E., Anderson, J., & Ram, R. (2013). Recapturing value in aerospace: Know your suppliers’ cost and collaborate to lower them. Perspective, 1–12. (Booz & Company).
• Martins, F. D. C., Simon, A. T., & Campos, R. S. D. (2020). Supply chain 4.0 challenges. Gestão&Produção, 27, Article e5427. [CrossRef]
• Matt, C., Hess, T. &Benlian, A. (2015).Digital Transformation Strategies.Business &Information Systems Engineering, 57(5), 339–343. [CrossRef]
• Metin, O., &Ünal, Ş (2022).İçerik analizi tekniği: İletişim bilimlerinde ve sosyolojide doktora tezlerinde kullanımı. Anadolu Üniversitesi Sosyal Bilimler Dergisi, 22(ÖzelSayı 2), 273–294. [CrossRef]
• Miao, X., & Zhang, D. (2014, September).The opportunity and challenge of Big Data's application in distribution grids.In 2014 China international conference on electricity distribution (CICED).IEEE. 962–964. [CrossRef]
• Modgil, S., Dwivedi, Y. K., Rana, N. P., Gupta, S., &Kamble, S. (2022). Has Covid-19 accelerated opportunities for digital entrepreneurship? An Indian perspective. Technological Forecasting and Social Change, 175, Article 121415. [CrossRef]
• Mukhopadhyay, T. & Kekre, S. (2002). Strategic and operational benefits of electronic integration in B2B procurement processes. Management Science, 48(10), 1301–1313. [CrossRef]
• Nasiri, M., Ukko, J., Saunila, M. &Rantala, T. (2020).Managing the digital supply chain: The role of smart technologies. Technovation, 1–6. [CrossRef]
• Nauwelaerts, Y., &Chakri, S. (2016). The role of e-commerce and m-commerce in the international strategy of Fashion Companies: A Qualitative research in the Belgian Fashion Industry. Innovation, 2, 80–113.
• Niemeyer, A. (2014, June). Picking winning supply-chain technologies. Interview, McKinsey & Company. http://www.mckinsey.com/insights/operations/picking_winning_supply_chain_technologies.
• Nowicka, K. (2018). Trust in digital supply chain management. Logistics and Transport, 39. [CrossRef]
• Özkanlısoy, Ö. &Akkartal, E. (2021). Digital Transformation in Supply Chains: Current Applications, Contributions and Challenges, BMIJ, 9(1), 32–55. [CrossRef]
• Pearsall, K. (2016, September). Manufacturing supply chain challenges-globalization and IOT.In 2016 6th Electronic System-Integration Technology Conference (ESTC). IEEE, 1–5. [CrossRef]
• Philip, J. (2021). Viewing digital transformation through the lens of transformational leadership. Journal of Organizational Computing and Electronic Commerce, 31(2), 114–129. [CrossRef]
• Pishdar, M., Ghasemzadeh, F., Antucheviciene, J., & Saparauskas, J. (2018). Internet of things and its challenges in supply chain management: a rough strength-relation analysis method.Information Management, 208–222. [CrossRef]
• Queiroz, M. M., & Telles, R. (2018). Big data analytics in supply chain and logistics: an empirical approach. The International Journal of Logistics Management, 29(2), 767–783. [CrossRef]
• Queiroz, M., M., Pereira, S., C., F., Telles, R. & Machado, M., C. (2019). Industry 4.0 and digital supply chain capabilities: A framework for understanding digitalisation challenges and opportunities, Benchmarking: An International Journal, 1–22. [CrossRef]
• Rad, F. F., Oghazi, P., Palmié, M., Chirumalla, K., Pashkevich, N., Patel, P. C., & Sattari, S. (2022). Industry 4.0 and supply chain performance: A systematic literature review of the benefits, challenges, and critical success factors of 11 core technologies. Industrial Marketing Management, 105, 268–293. [CrossRef]
• Rahamneh, A., Alrawashdeh, S., Bawaneh, A., Alatyat, Z., Mohammad, A., & Al-Hawary, S. (2023). The effect of digital supply chain on lean manufacturing: A structural equation modelling approach. Uncertain Supply Chain Management, 11(1), 391–402. [CrossRef]
• Raj, A., Dwivedi, G., Sharma, A., de Sousa Jabbour, A. B. L., &Rajak, S. (2020). Barriers to the adoption of industry 4.0 technologies in the manufacturing sector: An inter-country comparative perspective. International Journal of Production Economics, 224, Article 107546. [CrossRef]
• Rauniyar, K., Wu, X., Gupta, S., Modgil, S. & Jabbour, A., B. (2022). Risk management of supply chains in the digital transformation era: Contribution and challenges of blockchain technology. Industrial Management & Data Systems, 1–25. [CrossRef]
• Ruel, S., Viale, L. & Zouari, D. (2023). For a deeper understanding of the relationships between “firm size” and supply chain digitalization: An empirical investigation. International Journal of Integrated Supply Management, 1–43. [CrossRef]
• Sahebi, I. G., Masoomi, B., &Ghorbani, S. (2020). Expert oriented approach for analyzing the blockchain adoption barriers in humanitarian supply chain. Technology in Society, 63, Article 101427. [CrossRef]
• Samper, M. G., Florez, D. G., Borre, J. R., & Ramirez, J. (2022). Industry 4.0 for sustainable supply chain management: Drivers and barriers. Procedia Computer Science, 203, 644–650. [CrossRef] Sharma, V., Anand, S., Kumar, M., &Pattnaik, M. (2023).Bibliometric-thematic analysis and a technology-enabler-barrier-based framework for digital supply chain. International Journal of Value Chain Management, 14(1), 34–61. [CrossRef]
• Sheel, A., &Nath, V. (2019).Effect of blockchain technology adoption on supply chain adaptability, agility, alignment and performance. Management Research Review, 42(12), 1353–1374. [CrossRef]
• Shrivastava, S. (2023). Recent trends in supply chain management of business-to-business firms: A Review and future research directions. Journal of Business & Industrial Marketing, 1–21. [CrossRef]
• Song, S., Shi, X., Song, G., &Huq, F. A. (2021). Linking digitalization and human capital to shape supply chain integration in omni-channel retailing. Industrial Management & Data Systems, 121(11), 2298–2317. [CrossRef]
• Stemler, S. E. (2015). Content analysis. Emerging trends in the social and behavioral sciences: An Interdisciplinary, Searchable, and Linkable Resource. John Wiley & Sons. [CrossRef]
• Subramaniyam, M., Halim-Lim, S., A., Mohamad, S. F., B. & Priyono, A. (2021). Digital supply chain in the food industry: Critical success factors and barriers. Proceed IEEE, 404–410. [CrossRef]
• Verdin, R., & O'Reilly, J. (2021). A gender agenda for the future of work in a digital age of pandemics: jobs, skills and contracts (No. 24). WSI Study.
• Verhoef, P.C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi, Dong J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda, Journal of Business Research, 122, 889–901. [CrossRef]
• Vogelsang, K., Liere-Netheler, K., Packmohr, S., & Hoppe, U. (2019). Barriers to digital transformation in manufacturing: development of a research agenda. Hawaii International Conference on System Sciences. [CrossRef]
• Wang, G., Gunasekaran, A., Ngai, E. W., & Papadopoulos, T. (2016). Big data analytics in logistics and supply chain management: Certain investigations for research and applications. International Journal of Production Economics, 176, 98–110. [CrossRef]
• Weber, R. H. (2010). Internet of Things–New security and privacy challenges. Computer law & Security Review, 26(1), 23–30. [CrossRef]
• Weerabahu, W. S. K., Samaranayake, P., Nakandala, D., & Hurriyet, H. (2023). Digital supply chain research trends: a systematic review and a maturity model for adoption. Benchmarking: An International Journal, 30(9), 3040–3066. [CrossRef]
• Weichhart, G., Molina, A., Chen, D., Whitman, L. E., & Vernadat, F. (2016).Challenges and current developments for sensing, smart and sustainable enterprise systems. Computers in Industry, 79, 34–46. [CrossRef]
• Xu, J. (2014). Managing digital enterprise, ten essential topics. Atlantis Press. [CrossRef] Yıldırım, A., & Şimşek, H. (2011). Sosyal bilimlerde nitel araştırma yöntemleri. Seçkin Yayıncılık.
• Yuan, Y., Tan, H. & Liu, L. (2023). The effects of digital transformation on supply chain resilience: A moderated and mediated model. Journal of Enterprise Information Management, 1–23.
• Zhu, S. X. (2015). Integration of capacity, pricing, and lead-time decisions in a decentralized supply chain. International Journal of Production Economics, 164, 14–23. [CrossRef]