Threading the digital needle: the influence of process and technical digitalisation on competitive performance in the apparel supply chain

Abstract

Purpose – This study aims to examine the role of process and technical digitalisation in enhancing the apparel supply chain’s competitive performance. This study further explores how firm size moderates these relationships, offering operational-level insights into the strategic deployment of digital capabilities. Design/methodology/approach – A cross-sectional quantitative design was adopted, drawing on responses from 239 apparel industry practitioners. This study used structural equation modelling and multi-group analysis to validate the measurement model and test structural relationships, including moderation effects based on organisational size. Findings – Both process and technical digitalisation significantly enhance competitive performance, with technical digitalisation exhibiting a more potent effect. The findings indicate that process digitalisation benefits larger firms, while technical digitalisation influence remains consistent across different firm sizes. According to the findings, a differential effect of digitalisation types depends on the firm’s operational capacity and scale. Research limitations/implications – This study clarifies how digital technologies create value in supply chain performance. Technical digitalisation benefits all firms, but process digitalisation yields greater gains in larger, more resource-rich firms. Originality/value – This study integrates three perspectives to provide a refined lens for understanding the deployment of digital capabilities in supply chains. This study also contributes to the domain by investigating the effects of technical and process digitalisation on competitive performance in the apparel supply chain. The study offers a validated measurement framework and empirical evidence of how digital transformation drivers vary across organisations.