Accelerating digital supply chain management practices, customer development, and firm performance: Organizational culture matters

My-Trinh Bui; Jeng, Don Jyh-Fu; Ta, Huy Hung Article Accelerating digital supply chain management practices, customer development, and firm performance: Organizational culture matters Contemporary Economics Provided in Cooperation with: VIZJA University, Warsaw Suggested Citation: My-Trinh Bui; Jeng, Don Jyh-Fu; Ta, Huy Hung (2024) : Accelerating digital supply chain management practices, customer development, and firm performance: Organizational culture matters, Contemporary Economics, ISSN 2300-8814, University of Economics and Human Sciences in Warsaw, Warsaw, Vol. 18, Iss. 1, pp. 40-66, https://doi.org/10.5709/ce.1897-9254.525 This Version is available at: https://hdl.handle.net/10419/297647 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ www.ce.vizja.pl 40 This work is licensed under a Creative Commons Attribution 4.0 International License. Firms and suppliers are now using new digital technologies to make decisions for successful strategies. Firms are struggling with the supply chain dynamics needed to increase revenue and mitigate risk, and improve resilience after COVID-19. With the setting of strong competition and firms' business models shifting to digital transformation, this study examines the link between organizational culture (OC) and digital supply chain management practices (DSCMP) in generating a positive impact on firm performance (FP), including both direct and indirect influences via customer development (CD). Smart PLS 3.3.3 was used to analyze data from 326 respondents who registered as business managers who operate their supply chains using digital technologies. The findings indicated that DSCMP, CD, and OC had a favorable impact on FP, while DSCMP and OC had a beneficial impact on CD. It was also determined that DSCMP and CD played a mediating role in both of the above-mentioned associations. DSCMP and OC are two essential enablers for developing a firm’s customer base and improving performance efficiency in digital supply chains. Based on the Resource Dependence Theory (RDT), this study found that digitalization-related capabilities in supply chain management practices must be developed inside the company to improve the firm’s efficiency. Firm culture, accompanied by dominant characteristics, organizational leaders, organizational glue, and strategic emphasis should become essential components of DSCMP in organizations. 1. Introduction1. Introduction The logistics and supply chain sectors are booming and undergoing massive digital change. The logistics sector was valued at 10.41 trillion USD in 2022 (Statista, 2023). Amazon and a slew of startups are using whole new business models and leveraging evolving technologies such as blockchain, Artificial Intelligence (AI), the Internet of Things (IoT), Information and Communication Technologies (ICT) to radically alter the future of logistics. The rapid change in technology development and implementation has forced businesses and society to rethink products, consumption, and supply chain management (Jiang et al., 2023; Nandi et al., 2021). COVID-19 resulted in product shortages, the incapability to source goods in a physical operation structure, and a misalliance between the dimensions and quantities of goods available and what was required (Queiroz et al., 2020). It also impacted the firm performances and stock market (Cepoi, 2020; Estrada et al., 2021), bank and financial market (Goodell, 2020) and even led to economic crisis (Khan, et al., 2021). Other crises Accelerating Digital Supply Chain Management Practices, Customer Development, and Firm Performance: Organizational Culture Matters ABSTRACT M14, M15, M16, O33. KEY WORDS: JEL Classification: digital supply chain management practices (DSCMP), organizational culture (OC), firm performance (FP), customer development (CD). 1,3 International School, Vietnam National University, Hanoi, Vietnam 2 Graduate Institute of Technology, Innovation and Intellectual Property Management, College of Commerce, National Chengchi University, Taiwan Correspondence concerning this article should be addressed to: My-Trinh Bui, Faculty of Economic & Management, International School, Vietnam National University, Hanoi, G7 Building, 144 Xuan Thuy, Cau Giay, Ha Noi, Vietnam. E-mail: [email protected]; [email protected]. vn My-Trinh Bui1 , Don Jyh-Fu Jeng2 , and Huy Hung Ta3 Primary submission: 31.07.2023 | Final acceptance: 18.12.2023 41 My-Trinh Bui, Don Jyh-Fu Jeng, Huy Hung Ta 10.5709/ce.1897-9254.525DOI: CONTEMPORARY ECONOMICS Vol. 18 Issue 1 40-662024 including natural disasters, terrorism, and political violence have considerably altered many businesses’ practices (Seetharaman, 2020), requiring research into whether the critical factors enhancing firm innovation and decision-making are now as effective as they previously were (Huo et al., 2022; Liu et al., 2023). Supply chain management has received increasing attention as a critical factor in increasing firm performance (Golicic & Smith, 2013; Hsu et al., 2009; Ou et al., 2010; Suradi et al., 2020). However, the use of supply chain management practices requires mutual adaption and consideration of the global context, and the requirements of the digital revolution (Khan, 2019; Mukherjee et al., 2023). The disruptive change experiences have highlighted the innovation in supply chain management practices, which require these issues to be addressed from a theoretical and a practical perspective (Altay & Pal, 2023; Fares et al., 2023; Gligor et al., 2018; Zinn & Goldsby, 2017). Supply chains play a pivotal part in the daily activities of enterprises and in global development (Garay-Rondero et al., 2020; Min et al., 2019) . Garay-Rondero et al. (2020) indicated that the high speed of changes in the macro environment, including economic, financial, social, and particular technological aspects, has led to rapid transformation in supply chain management practices (Mishra et al., 2023; Philsoophian et al., 2022; Tu et al., 2018). With the aim of supporting organizations’ attempt to gain competitive advantage in a situation of environmental uncertainty, many researchers have focused on paying attention to the strategic alignment between organizations’ structure and infrastructure (Hong et al., 2022; Roh et al., 2008; Sung & Kim, 2019). From the supply chain management perspective, firms should also consider the predominant culture to obtain a fit with the requirements of their organization’s supply chain management practices to remain competitive. Organizational culture relates to the beliefs and value held by management, and the organizational philosophy, with a strong link to outcomes such as transformative success, strategic accomplishment, and firm efficiency (Hutter et al., 2023; Jogaratnam, 2017; Mahfouz & Muhumed, 2020). According to Sharma et al. (2020), the supply chains of all factories, retailers, and even wholesalers are experiencing a major impact of the COVID-19 crisis (Hsiang et al., 2020). With the significant impact of the COVID-19 pandemic (Levin et al., 2020), global supply chain across all sectors and industries have been facing disruption because of the lack of personal protective equipment among other factors (Ranney et al., 2020; Sączewska-Piotrowska & Piotrowski, 2021). Shortages of personal protective kits such as face masks and hand sanitizers, and even basic food items like bread, eggs, and milk, and the lockdown and semi-lockdown policies of governments, disrupted all organizations’ operational activities (Jianyin et al., 2020). Firms not only faced internal obstacles such as how to maintain operations, maintain employees (Jianyin et al., 2020), and foster organizational cultures, but also had to deal with losing customers (loyal customers, current customers, and potential customers) and also the rising raw materials cost like oil, gasoline, natural gas, ethanol, palm oil, heating oil and even CO2 emissions allowances (Martínez et al., 2022; Olakojo, Onanuga, & Onanuga, 2021). It is critical to comprehend the details of customer development to restructure supply chain management to produce resilient organizations. Although organization are aware of the growing trends in technology implementation in supply chain management and their impact on organization culture, they have to deal with the following questions: How can the changing scenarios of supply chain practices use digital technologies in the current industrial revolution? Will organizational cultures and digitalization of supply chain practices generate a competitive advantage in the global context of COVID-19? The purpose of this study was to examine the impacts of DSCMP and OC on firm performance, and their indirect influence mediated through customer development (CD). First, this study aimed to identify general DSCM techniques that may be used to assess business performance. Second, the research looked at whether DSCMP and OC are now as essential to businesses as they were before the COVID-19 pandemic. Third, this research investigated whether customer development plays a mediating function in the connection between DSCMP and FP; and OC and FP. Finally, because Resource De- www.ce.vizja.pl 42 Accelerating Digital Supply Chain Management Practices, Customer Development, and Firm Performance: Organizational Culture Matters This work is licensed under a Creative Commons Attribution 4.0 International License. pendence Theory has received both praise and criticism from academics since its inception (Hunt & Davis, 2012) our work contributes to the literature on Resource Dependence Theory by looking at the mediating function of customer development in the theoretical framework. The remainder of this paper is structured as follows. The first section highlights pertinent studies on the resource dependence theory framework, DSCMs, CD, FP, and organizational culture, as well as explains the hypothese development. The second section discusses the research approach, data collecting, measurement validation, and findings. The final portion includes a review of the study's analysis and contributions, as well as its limitations. 2. Literature Review2. Literature Review 2.1. Theory Framework: Resource Dependence Theory (RDT) RDT is predicated on the notion of interdependence when one player is unable to handle all of the essential factors for a specific action or outcome to advance a firm's behavior and profitability and expand business operation especially in supply chain management (Handfield, 1993; Jiang et al., 2023; Sung & Kim, 2019). Interorganizational connections are viewed as a way of obtaining necessary resources and improving control over resource supply in RDT (Galvão et al., 2019). RDT is used to investigate the interaction between environmental uncertainties (demand, supply, and technology) and strategic supply management, as supplier managers attempt to achieve mutual benefits, access to unique resources, and a reduction in environmental risks (Galvão et al., 2019). Thus, RDT pays attention to determining how companies can build, and maintain such interdependence and reduce uncertainty between partners. Supply chain management is one attempt to overcome innate weaknesses through collaborative activity in a volatile business environment. In the supply chain management context, cooperation between firms aims to achieve common targets and coordinate supply chain activities, as a result, such firms become increasingly dependent on each other (Sung & Kim, 2019). In their interconnectedness, they must manage unpredictability, maintain predictability, and seek stability. According to RDT, in traditional supply chain management, all members want to avoid becoming overly reliant on others and are more likely to rely on their own enterprises to achieve superiority over others. However, this approach does not lead to effective supply chain management performance. Another approach is that each cooperating member understands how to take advantage of resource depletion. As a result, members can integrate their resources with their partners' complementary resources, leading to the development of unique resources (Harrison et al., 1991; Sung & Kim, 2019). The adoption of advanced technologies, digitalization-based industrial marketing, and purchasing techniques (Mukherjee et al., 2023) allows collaborating firms to facilitate resource, informational, and social interdependencies to improve resilience (Liu et al., 2023), transformation (Hutter et al., 2023) and innovation (Lytras et al., 2022). When businesses develop relationship-specific capabilities, they can develop competencies that are significantly superior to their own and gain a competitive advantage based on mutual trust rather than the aggressive exploitation of collaborative partners (Akhtar et al., 2023). The relationship between digital platforms and operational performance can be mediated by supply chain competence. Digital culture is a contextual component that explains why the effects of digital platforms on business performance differ (Hautala-Kankaanpää, 2022). 2.2. Resource Dependence: Contingent on Digital Supply Chain Management Practices and Organizational Culture 2.2.1. Digital Supply Chain Management Practices (DSCMP) Supply chain management has witnessed a huge change in its role in organizations between being a pure operational function and becoming an independent supply chain management function (Attaran, 2020; Sharma & Joshi, 2023). Supply chain management is seen as the pivotal part of every business activity 43 My-Trinh Bui, Don Jyh-Fu Jeng, Huy Hung Ta 10.5709/ce.1897-9254.525DOI: CONTEMPORARY ECONOMICS Vol. 18 Issue 1 40-662024 because it relates to procurement, inventory control, warehouse, manufacturing, distribution, and other fulfillment activities (Attaran, 2017, 2020). Reducing costs for supply chain management, such as transportation and inventory costs strongly influence firms’ competitive advantage (Dmuchowski, 2021). Organizations thus aim to build an effective supply chain that can produce strategic value through digital implementation that reduces supply chain costs. The digital economy has changed supply chains dramatically in recent years. In today's economy, the relationships between people (Ata et al., 2022), machines, channels, and organizations, which are supported by digital technology, create value for the business, allowing it to gain a competitive advantage (Attaran, 2020; Dubey et al., 2023). Powerful technologies in the digital economy support supply chain advanced supply chain analytics. With the strong impact of technology development, organizations can restructure their supply chain management to enable better visibility, spirituality (Ríos-Pérez et al., 2022), better insights and collaboration (Khan & Mujitaba, 2023), and shorten customers’ and partners’ response times (Attaran, 2020; Chase, 2019). There is much technology that contributes to the advances in change of supply chain systems, including Cloud Technology, IOT, Additive Manufacturing, Advanced Robotics, Advanced Analysis, Blockchain Technology, Augment Reality (AR) (Liu et al., 2023; Philsoophian et al., 2022). The evolution of information technology has enabled firms with smart manufacturing, autonomous vehicles, and intelligent technological business system such as PPC (Production Planning & Control), ERP (Enterprise Resource Planning), and SCADA (Supervisory Control and Data Acquisition) to use supply chain management based on the integration of heterogeneous data and complex knowledge. Artificial intelligence (AI) and intelligent technologies are the latest technological innovations in supply chain management, with significant benefits for businesses (Helo & Hao, 2021). The IoT is a global digital platform of individually accessible objects with identifying, networking, and actuation capabilities connected to the Internet, which improves the connections between things and humans, humans and machines, and things and machines (Lardo, Mancini, Paoloni, & Russo, 2020). Because of its rising potency, the IoT is a foundation technology for cyber-physical systems that enable the development of self-regulating, autonomous, knowledge-based, and sensor-based manufacturing systems (Hofmann & Rüsch, 2017). These characteristics of high technology in supply chain management system help firms to achieve competitive advantage in a dynamic environment. Supply chain management (SCM) plays a huge role in the effective operational activities of a firm, and consists of functional entities and practices for improving individual firms’ and their supply chains’ long-term competitive performance (Al-Shboul et al., 2017; Kim, 2006). While the prominence of the whole supply chain and the degree of information available within the firm are not optimal for many organizations, especially during the Covid-19 pandemic (Seyedghorban et al., 2020), SCM has accelerated the process of digitizing firm processes, and integrating multiple stakeholders and resources to assure that goods are in synchronization with customer demands, and that businesses can achieve whole-system competitive advantage goals (HautalaKankaanpää, 2022). Digital SCM is defined as using a centric platform or an intelligent, value-driven technological system and network to gather and synchronize instantaneous information originating from many sources, and to operate the business in innovative ways with technology and analytics, to produce new effectiveness, profits, and business value (Büyüközkan & Göçer, 2018; Garay-Rondero et al., 2020). To operate smoothly, the digitalization of SCs should maintain all the knowledge and information of traditional SCs while transforming the chain’s procedures, management components, and flows because the emerging and specialized markets require quick reactions. Combining the definition of SCM and digitalization, this study used the concept of DSCMP as a set of activities performed via a digital platform or best-fit technology system to promote a firm’s effective supply chain management (Li et al., 2006). Although researchers have proposed many components of SCM, in line with the digital context, this study examined four characteristics of SCMPs: customer relationships Truong et al. (2017), supplier relationships (Suradi et al.), information quality (Jajja, Asif, Montabon, & Chatha), and information sharing (IS) (Amedofu et al., 2019; Gunasekaran et al., 2017; Li et al., 2006). www.ce.vizja.pl 44 Accelerating Digital Supply Chain Management Practices, Customer Development, and Firm Performance: Organizational Culture Matters This work is licensed under a Creative Commons Attribution 4.0 International License. Digital technology, including social media, AI, blockchain, and big data, can transform a retail business into a digital one by enabling proper transparency in retailing systems (Mukherjee et al., 2023). Between suppliers and customers, blockchain can establish a new route for distribution and communication. Retail SC employees use blockchain in their retail SC because of its promise and effectiveness. 2.2.2. Organizational Culture (OC) OC has generated systematic studies (Braunscheidel et al., 2010). Previous research found that organizational culture is a set of values and practices shared by all groups in the firm, or at least within senior management (Leisen et al., 2002). Another perspective views OC as a set of shared and consistent beliefs and values that develops through time within a firm (Gordon & DiTomaso, 1992), or a set of shared fundamental beliefs that the group has learned as it worked through its issues of external adaptation and internal integration (Schein, 2010). Firms may choose to have a conventional hierarchical cultural profile describing themselves as more solid than flexible and more internally oriented (Klimas, 2016). A collectivist culture has been is found to be critical in determining the effects of knowledgebased skills and intangible assets on information technology service provider innovation to maintain firm competitiveness (Presbitero et al., 2017). Firms may be fluid, adaptable, and responsive systems of diverse talented individuals who perform a variety of tasks that can generate effective, radical ideas, based on the implementation of mechanical structures and bureaucratic processes (Green & Cluley, 2014). Under high competitive pressure and a rapidly changing market demand, firms are encouraged to look for relational capital to create proactive environmental strategies. Market pressure and environmental strategy are moderated by a flexibility-control orientation (Dai et al., 2018), proactive customer orientation, collaborative learning capability (Jean et al., 2017), and a performance-oriented culture (Gopalakrishnan & Zhang, 2017), which is a typical depiction of organizational culture. A competitive culture fosters innovative performance and mitigates the negative effects of client reliance on the innovation of the firm as a vendor. However, a performance-orientated culture, in contrast, amplifies the detrimental impact of client reliance on vendor innovation (Gopalakrishnan & Zhang, 2017). State-of-the-art studies of organizational culture argue that ambidexterity necessitates a firm’s adoption of two key OCs: a tendency to cannibalize and a tendency to integrate existing knowledge, both of which enable firms to achieve superior performance (Harmancioglu, Sääksjärvi, & Hultink, 2020). OC represents the attitudes and values associated with the usage of digital technology influences how a company conducts its business using digital technology (Hautala-Kankaanpää, 2022). This study aimed to identify several values of both firms and their partners in cooperative relationships in the context of SCM. The various types of cultural values may lead to the adoption, promotion, and reinforcement of DSCMP. 2.2.3. Customer Development (CD) Customer development plays a pivotal role in an organization development. In a dynamic environment, the success level of an organization is determined by the level of consumer value it provides in its target markets (Asamoah et al., 2021; Christopher, 2016). Although the important role of customers development is accepted, this concept is fairly new in the literature with different points of view apparent. CD performance is primarily concerned with identifying and addressing specific consumer requests with limited resources (Lin & Lin, 2023). A comparable perspective on CD, CD denotes the firm’s frontline staff’s modification of services, approaches, and recommendations to obtain, satisfy, and maintain customers current requirements (Amedofu et al., 2019; Lin & Lin, 2023; Peng, 2023). Firms' relationship commitment is related to supply chain performance indirectly through integration with and by customers (Ruzo-Sanmartín et al., 2023). This research defines customer development as a company’s capacity to create and prepare customized goods and services to satisfy and retain consumers. 2.2.4. Firm Performance Firm performance is a composite construct and has a critical role in the success of an organization. In business research and supply chain management research, many authors consider three components of firm performance: market-based, operationalbased, and accounting-based (Golicic & Smith, 2013; 45 My-Trinh Bui, Don Jyh-Fu Jeng, Huy Hung Ta 10.5709/ce.1897-9254.525DOI: CONTEMPORARY ECONOMICS Vol. 18 Issue 1 40-662024 Gunasekaran & Kobu, 2007; Paulraj et al., 2017; Shan et al., 2023). In this study, market and financial performance were used to measure firm performance, as they had been in previous studies (Al-Shboul et al., 2017; Golicic & Smith, 2013; Karimi & Rafiee, 2014; Li et al., 2006). Financial criteria include return on investment, return on assets, sales growth, and profit margin, while market criteria include financial goals, stakeholders’ interests, internal procedures, employee development, and general competitiveness issues. These metrics were chosen to create a comprehensive picture of a company’s success. As a result, firm performance is defined in this context as the degree to which a corporation achieves its market and financial objectives. 2.3. Hypothesis Development Firms, according to RDT, are embedded in a network of trade interactions, and they rely on other firms for survival in this unstable contexts (Stern, Pfeffer, & Salancik, 1979). Supply chain partners can become reliant on certain firms within a supply chain when those firms have critical resources for addressing environmental risks and dynamics (Galvão et al., 2019; Pfeffer, 2003). Raw material and energy shortages induced by geopolitical variations in production factor demand are examples of such reliance in today’s economic environment. According to Deepu and Ravi (2021), to build successful SC digitalization decisionmaking, firms create an effective management culture such as integrated decision support system consisting of Data, Information, Knowledge, and Wisdom) (DIKW) (Deepu & Ravi, 2021). The cultural orientation of digital transformation, trust, and cooperative problem-solving may be quite beneficial in building the dynamic capability of DSCMP (Faruquee et al., 2021). While inter-firm cooperation between smallholders and subsequent actors is supported by digitalized agricultural value chains (Hartmann et al., 2020), cultural dimensions play a dominant role in SCM success (Luu, 2019; Mello & Stank, 2005). Smartphones have become more important to smallholders since they are used in value chains for digital activities. The level of SCM integration and practices (i.e., trust, communication, and commitment) and value generation is heavily influenced by the partner firm’s culture (Cao et al., 2015; Sambasivan & Nget Yen, 2010) . Sustainable purchasing practices and sustainable supply practices are influenced by cultural orientations, where local community oriented preservation cultures drive sustainable supply practices (Mariadoss et al., 2016), the dynamic capabilities of sensing, seizing, and transforming, are considered to be an aspect of cultural behavior used in addressing new opportunities and threats created by technology (Schoemaker et al., 2018). This agility sensing is the capacity to identify, develop, co-develop, and assess new technological opportunities for SCM and threats related to customers’ needs (Faruquee et al., 2021; Hutter et al., 2023). Additionally, external integration, and collaboration with customers, and suppliers are influenced by organizational culture (Chunsheng et al., 2020; Jajja et al., 2019; Sambasivan & Nget Yen, 2010). OC may influence the generation of the fundamental objective of SCM, which is the supply of an appropriate product, at the correct location, at the correct moment, and at an affordable cost (Cao et al., 2015). Entrepreneurship, innovation, and learning serve as first-order markers of higher-order cultural competency, which has a favorable impact on cycle time reduction (Hult et al., 2002). Supply chain integration is improved by development culture. The long-term development will be one of the main goals for businesses that prioritize development culture. The company pays more attention to new information and technology that can improve its ability to adjust to new opportunities to meet that goal. In this scenario, a company is driven to gather knowledge about the current environment, anticipated demand, and technologies or capabilities that could direct its R&D-related activities (Brzeziński & Bitkowska, 2022). A company must interact and integrate its internal operations with those of external suppliers and customers through DSCMP to obtain such market and technology knowledge. As a result, businesses with a strong development culture are more inclined to use DSCMP to gather the knowledge, expertise, and resources required for future customer developments (Cao et al., 2015). Thus, we propose that: H1a: OC positively affects DSCMP Depending on the form of corporate culture (clan, adhocracy, market, hierarchy), institutional forces and climate can have a beneficial influence on supplier social compliance, especially customer base development (Jajja et al., 2019). The effectiveness of www.ce.vizja.pl 46 Accelerating Digital Supply Chain Management Practices, Customer Development, and Firm Performance: Organizational Culture Matters This work is licensed under a Creative Commons Attribution 4.0 International License. relationships in logistics outsourcing is dependent on the number of exchange risks (i.e., uncertainty and asset specificity) which also benefit to develop different customer segments for firms (Chu et al., 2017). The start of a SC’s customer base was found to be prompted by an internal driver, particularly, a firm’s customer orientation (Yunus & Tadisina, 2016). Supplier network responsiveness improves a company's capacity to launch new items quickly in response to client demands (Asamoah et al., 2021). Organizations can better meet sudden changes in customer demand by having their key suppliers respond quickly and effectively to urgent orders. This increases the value organizations can provide their clients and fosters greater client development (Holmström et al., 2019; Jean et al., 2017). Customer development strategies are positively impacted by organizational culture in terms of outward emphasis. Thus, the following hypothesis was proposed: H1b: OC positively affects CD Previous studies list four critical supply chain security practices that have an impact on a company’s security operational performance. The firm’s culture has a beneficial influence on the link between facility management and the firm’s security operational performance with service providers (Zailani, Subaramaniam, Iranmanesh, & Shaharudin, 2015). Serving culture has a beneficial influence on logistics performance in service-oriented high-performance work systems (Suhartini et al., 2020). A culture of collective role breadth self-efficacy and collective customer knowledge were found to have a favorable connection with logistical performance (Luu, 2019). The combination of risk management culture, SC flexibility, and internal integration can improve a firm’s financial performance through SC resilience (Chunsheng et al., 2020). Entrepreneurship, innovation, and learning serve as dimensional measurements of cultural competency, which has a favorable impact on cycle time reduction (Yunus & Tadisina, 2016) and constitutes one form of firm performance. Thus, we suggest that: H1c: OC positively affects firm performance According to Amedofu et al. (2019), SCMP is important in being able to attract, please, and retain clients. An efficient supplier connection with strategic partners can result in better quality, reduced operational cost, reduced delivery time, advanced technology, and innovative products, which can contribute to a firm’s ability to attract new customers and maintain current customers. Customer relationships enhance a firm’s ability to provide higher value by developing customer loyalty (Gandhi et al., 2017). The bullwhip phenomenon (i.e., even minor changes in retail demand can lead to gradually bigger changes in wholesale and distributor demand) has a less negative influence on a DSCMP since information is communicated frequently, allowing firms to meet consumer requests more quickly and accurately, and thus improve their ability to maintain customer relationships (Amedofu et al., 2019; Lin & Lin, 2023). Supply chain agility helps firms follow customer preferences, improve products and services at the right quality and pricing, and accelerates adaptability and responsiveness to market swings (AlOmoush et al., 2023). Thus, we proposed the following: H2: There is a positive relationship between DSCMP and CD because firms experiencing DSCMP will benefit by developing their customer base. Businesses began looking for methods to help them reclaim controlling management of environmental factors (Matsuno & Kohlbacher, 2019). When firms cannot control all of the essential circumstances involved in producing the target output, RDT predicts that they will rely on their major suppliers, and use networks to overcome poor reputations and limited resource availability (Galvão et al., 2019). Firms aim to control the level of resource demanding and the extent of resource dependency. They support activities that stimulate the formation of alliances and networks (Hillman et al., 2009). In this study, we use buyer’s dependence as a gauge of a supplier’s importance to the buyers’ operations. Firms’ competitive strategy decisions to focus on their core competencies, increase their level of outsourcing, and rely more on shared complementary resources across organizational boundaries may result in an increase in buyer dependency. Firms that practice higher levels of SCMP are more likely to achieve their financial and market-based goals. DSCMP is a critical factor that has a major effect on FP. Implementing a DSCMP can help a firm increase its resilience (Liu 47 My-Trinh Bui, Don Jyh-Fu Jeng, Huy Hung Ta 10.5709/ce.1897-9254.525DOI: CONTEMPORARY ECONOMICS Vol. 18 Issue 1 40-662024 et al., 2023), market share, return on investment, and overall competitiveness (Hieu & Chi, 2022; Nasiri et al., 2020). To achieve a successful supplier relationship, firms use high-quality inputs, providing on time and in the right amount avoid downtime incidents, reduce the rate of production of flawed goods, reduce cost, and minimize unused, and safety inventory levels (Truong et al., 2017). Companies with having long-term strategic customer alliances will be better able to meet the needs of their current customers while also targeting new customer areas to boost sales and revenue (Amedofu et al., 2019). The quality and amount of information exchange have improved, resulting in reduced cheaper costs, a higher fulfillment rate, a shorter cycle time, efficient departmental cooperation, and improved alliance partner connections (Philsoophian et al., 2022). When adopting DSCMP activities, firms improve their operational efficiency in gaining competitiveness (M. Khan, 2019; Liu et al., 2023). The implementation of the emerging practices for SC digitalization and unphysicalization is identified as the most important contexts in which Big Data contributes to SC performance (Perano et al., 2023) Thus, we proposed that: H3: DSCMP positively affects firms’ FP. A company’s ability to boost customer satisfaction reflects its ability to retain long-term customers. Customer satisfaction has an impact on a company’s profits. This is explained by the fact that satisfied consumers are more likely to repurchase and develop loyalty tendencies (Lin & Lin, 2023). Thus, the cost of supplying a loyal/retained customer is lower, resulting in better revenue and profitability (Yeung & Ennew, 2000). As a result, customer growth has an impact on business profitability. Amedofu et al. (2019) proposed that customers are the key relationship in the SCMP. A firm’s ability to appeal to and maintain customers can generate effectiveness. Firm with a higher focus on the needs of their customers are more likely to develop novel resources, devote more time to improving current products, or come up with alternatives that can quickly meet customer needs and current market demands, which results in superior market performance, such as a larger market share or increased sales (Lee & Wei, 2023; Schulze et al., 2022). Firms may improve supply chain performance by strengthening relationships between businesses and their customers (Ruzo-Sanmartín et al., 2023). Thus, we hypothesized that: H4: There is a positive relationship between CD and FP because firms that experience positive CD will enhance their FP. Previous research supports the connection of CD to the DSCMP-FP link based on the relationship between DSCMP, CD, and FP. The resource dependence theory strongly indicates the relationship as a critical resource for firms to enhance competitiveness and boost FP (Liu et al., 2023; Schulze et al., 2022). A direct relationship has been proposed between DSCMP and FP due to cost reduction, reduced waste, and safety inventory levels (Lin & Lin, 2023).In addition, with the lower cost of operations because of effective DSCMP, a firm can attract, satisfy and retain more customers with a lower cost strategy to obtain a higher FP. Partners are forced to work together to co-create value by responding more quickly and effectively to market changes. This gives them the opportunity to grasp business opportunities, increase profitability, and satisfy supply chain partners (AlOmoush et al., 2023). Thus, we proposed that: H5: CD mediates the relationship between DSCMP and FP so that the relationship between DSCMP and FP is stronger when CD is stronger. In today’s environment, modern firms are more likely to incorporate “customer focus” into their organizational culture because a customer-oriented culture can increase a firm’s performance (Beidokhti & Ghaderi, 2011; Luu, 2019). This study posits that organizations adopt a customer-centric culture to increase their FP indirectly by producing superior CD capabilities (Lin & Lin, 2023), which are the foundation of firm profitability. Thus, OC and CD are assumed as sets of capabilities that can improve a firm’s competitiveness, which is interpreted as CD being involved in the relationship between OC and FP (Hutter et al., 2023). Thus, we proposed the following hypothesis: H6: CD mediates the relationship between OC and FP so that the relationship between OC and FP is stronger when CD is stronger. www.ce.vizja.pl 54 Accelerating Digital Supply Chain Management Practices, Customer Development, and Firm Performance: Organizational Culture Matters This work is licensed under a Creative Commons Attribution 4.0 International License. Table 4a Second-order Construct Validation Items FL Mean Standard Deviation Cronbach's Alpha rho_A Composite Reliability Average Variance Extracted (AVE) VIF CD CD1 0.836 6.046 0.985 0.837 0.839 0.891 0.672 1.870 CD3 0.803 5.982 0.981 1.763 CD2 0.819 5.856 1.097 1.780 CD4 0.819 5.847 1.080 1.830 OC CO 0.907 0.000 1.000 0.937 0.939 0.955 0.841 3.370 FC 0.934 0.000 1.000 2.786 LD 0.901 0.000 1.000 4.485 TD 0.927 0.000 1.000 3.187 DSCMP CR 0.879 0.000 1.000 0.898 0.903 0.929 0.767 3.270 IE 0.902 0.000 1.000 3.332 IS 0.913 0.000 1.000 2.086 SR 0.806 0.000 1.000 2.026 FP FP1 0.851 5.745 1.146 0.855 0.855 0.902 0.696 1.942 FP3 0.837 5.709 1.174 1.888 FP2 0.830 5.736 1.087 2.010 FP4 0.820 5.761 1.115 4.100 Table 4b Assessment of Reliability, Convergent and Discriminant Validity of Reflective Constructs (Fornell Larcker Criterion) CR IE IS SR CR 0.808 IE 0.770 0.799 IS 0.728 0.761 0.783 SR 0.557 0.615 0.697 0.806 CO FC LD TD CO 0.873 FC 0.778 0.851 LD 0.749 0.813 0.841 TD 0.804 0.830 0.756 0.860 CD OC FP DSCMPR CD 0.819 OC 0.644 0.917 FP 0.776 0.640 0.834 DSCMP 0.793 0.679 0.789 0.876 55 My-Trinh Bui, Don Jyh-Fu Jeng, Huy Hung Ta 10.5709/ce.1897-9254.525DOI: CONTEMPORARY ECONOMICS Vol. 18 Issue 1 40-662024 4. Data Analysis4. Data Analysis 4.1. Measurement Model We created two performance metrics to represent the effect that DSCMP and OC have at an organizational level as part of investigating the nomological validity of the proposed concept. We re-examined construct-level reliability and validity, as well as inter-correlations between latent variables for first-order constructs (Table 5). The confirmatory composite analysis examines the measurement (saturated) model's overall fit. (Benitez et al., 2018). Additionally, a confirmatory composite analysis reveals any model miss requirements and helps assess whether it makes sense to establish the suggested construct (Henseler, 2017). Based on the guiding principle of Benitez et al. (2018), confirmatory composite analysis compares the empirical correlation matrix with the modelimplied correlation matrix to determine the adequacy of the composite model (i.e., higher-order model). To examine the goodness of saturated model fit, the standardized root means square residual (SRMR), unweighted least squares (ULS) discrepancy (dULS), and geodesic discrepancy (dG) were used. In conclusion, the indicators lend empirical support to the question of whether the latent variables exist and whether the indicators create a higherorder construct. As an absolute measure of model fit criterion, the SRMR calculates the average magnitude of the differences between observed and expected correlations. The SRMR value was 0.049, which is less than the 0.080 criterion. Additionally, the 95% quantile of their respective reference distributions (HI95) was below all discrepancy measures (dULS and dG) (Table 7). The outcomes showed that the composite construct's measurement structure was accurate. 4.2. Structural Model The structural model was evaluated once the measurement model was confirmed to be sound. We first looked at the structural model to see whether it had too much multicollinearity. Evaluation of the VIF for each of the predictor constructs showed that the highest VIF value was 3.094, which was less than the threshold of 5 (Hair et al., 2010). As a result, collinearity between the predictor constructs was not a major problem in the model. The coefficient of determination (R2) for DSCMP, CD, and FP were 0.461, 0.649, and 0.691, respectively. This means that about 46.1 percent of the variation in DSCMP was predicted by organizational culture, 64.9 percent of the variation in CD is predicted by DSCMP and organizational culture, and about 69.1 percent of the variation in firm performance was predicted by organizational culture, DSCMP, and CD. These represent moderate levels of determination (Hair et al., 2017). We evaluated the Stone – Geisser’ s Q2 value (Geisser, 1974; Stone, 1974), which demonstrates the model’s predictive relevance. The Q2 values for the model’s endogenous variables were greater than 0, which showed the predictive relevance of the constructs (Hair et al., 2017), confirming the quality of the structural model. To analyze the effect size (F2) of the hypothesized relationships, we used Cohen’s (1988) recommendation, with 0.02, 0.15, and 0.35 indicating small, medium, and large effects, respectively. OC was found to have a large effect of 0.854 on DSCMP, a small effect of 0.059 on customer development, and a medium effect of 0.024 on firm performance. DSCMP was found to have a large effect of 0.669 on customer development and a medium effect of 0.177 on firm performance. CD also had a medium effect of 0.157 on firm performance. We evaluated the results of the hypothesized paths by examining their path coefficients, t-values and p-values, and effect sizes. The results of the hypothesis testing are presented in Figure 2 and Table 7. The findings showed that all hypothesized relationships were positively significant. H1 was supported as organizational culture had a direct impact on DSCMP (β = 0.679, t = 13.269, p < 0.001). H2 is supported in that DSCMP had a direct impact on CD (β = 0.660, t = 11.853, p < 0.001). The results also supported H3 which stated that higher levels of DSCMP would result in higher levels of firm performance (β = 0.412, t = 5.693, p < 0.001). H4 was also supported, with higher levels of customer development leading to higher performance (β = 0.372, t = 6.026, p < 0.001). www.ce.vizja.pl 56 Accelerating Digital Supply Chain Management Practices, Customer Development, and Firm Performance: Organizational Culture Matters This work is licensed under a Creative Commons Attribution 4.0 International License. Table 5 Inter-correlations of the Latent Variables for First-order Constructs SR CR IS IE FC LD CO TD CD FP SR 1 CR .675** 1 IS .785** .742** 1 IE .713** .784** .791** 1 FC .620** .583** .645** .632** 1 LD .515** .501** .567** .564** .821** 1 CO .564** .545** .584** .592** .813** .766** 1 TD .554** .548** .587** .591** .832** .754** .844** 1 CD .732** .809** .780** .770** .650** .575** .632** .658** 1 FP .717** .786** .780** .754** .647** .575** .611** .635** .870** 1 Table 6 Q Square and F Square Value Q square SSO SSE Q² (=1-SSE/SSO) CD 1304 743.339 0.43 OC 1304 1304 FP 1304 685.375 0.474 DSCMP 1304 1304 F square CDE OCLT FPM DSCMP CD 0.157 OC 0.059 0.024 0.854 FP DSCMP 0.669 0.177 A significant indirect effect of OC on customer development via DSCMP practices (β = 0.448, t = 8.823, p < 0.001) was observed. A significant indirect effect of OC on FP via DSCMP (β = 0.279, t = 5.419, p < 0.001) was also observed. The relationship between organizational culture and FP was mediated by CD (β = 0.073, t = 2.829, p < 0.005), and by DSCMP and CD respectively (β = 0.167, t = 5.554, p < 0.001) providing support for H6. The direct effect of OC on firm performance (with the mediator of DSCM and CD present) was positive and significant, which indicates a partial mediation of DSCM and CD. The effect of DSCMP on customer development and the effect of customer development on firm performance were both positive and significant, indicating complementary partial mediation (Hair et al., 2017). This means that a portion of the effect of DSCMP on FP was mediated through CD, with DSCMP directly explaining the remaining portion independent of CD. Similarly, a significant indirect effect of DSCMP on FP via CD (β = 0.245, t = 5.444, p < 0.001) was observed, which the existence of a mediating effect of customer development on the effect of DSCMP on FP (Hair et al., 2017) providing support for H5. 5. Managerial Implications5. Managerial Implications This study found that organizational culture was positively associated with DSCMP, which is consistent with prior studies' claims that group culture 57 My-Trinh Bui, Don Jyh-Fu Jeng, Huy Hung Ta 10.5709/ce.1897-9254.525DOI: CONTEMPORARY ECONOMICS Vol. 18 Issue 1 40-662024 Table 7 Smart PLS Direct Relationship Original Sample (O) Sample Mean (M) SD T value P Values Bias 2.5% 97.5% VIF CD -> FP 0.372 0.369 0.062 6.026 0.000 -0.003 0.241 0.493 2.849 OC -> CD 0.196 0.198 0.061 3.210 0.001 0.002 0.072 0.315 1.854 OC -> FP 0.121 0.124 0.058 2.082 0.038 0.003 0.034 0.248 1.963 OC -> DSCMP 0.679 0.683 0.051 13.269 0.000 0.005 0.564 0.762 1.000 DSCMP -> CD 0.660 0.658 0.056 11.853 0.000 -0.002 0.543 0.759 1.854 DSCMP -> FP 0.412 0.411 0.072 5.693 0.000 0.000 0.268 0.545 3.094 Table 8 Indirect Relationships Original Sample (O) Sample Mean (M) SD T Value P Values OC -> DSCMP -> CD 0.448 0.449 0.051 8.823 0.000 DSCMP -> CD-> FP (H5) 0.245 0.244 0.045 5.444 0.000 OC -> DSCMP -> FP 0.279 0.282 0.052 5.419 0.000 OC -> CD -> FP (H6) 0.073 0.071 0.026 2.829 0.005 OC-> DSCMP -> CD -> FP 0.167 0.165 0.030 5.554 0.000 Figure 1 PLS-SEM Results www.ce.vizja.pl 58 Accelerating Digital Supply Chain Management Practices, Customer Development, and Firm Performance: Organizational Culture Matters This work is licensed under a Creative Commons Attribution 4.0 International License. drives CD. As facilitators for DSCMP, our findings highlight the relevance of a shared mindset on sustainable growth, strategic emphasis, dominant characteristics, cooperation, and openness leadership in the formation of firm cultures. Existing research on rational culture has only found that it affects outward SCM (Braunscheidel et al., 2010). An efficient high-performance OC across the digital supply chain, from top management down to the warehouse and distribution hubs should be built to be consistent with the firm’s core values. Many measures, including higher productivity-focused firm cultures and better supply chain practices, are used to demonstrate the value of high performance. When a culture has mostly been internal to a firm, suppliers and other supply chain partners have their own cultures. Customers and suppliers, to some extent, behave as agents in many of the same ways that employees can do. Because the traditional "boss" is rarely present in digital supply chain partnerships, firms rely even more on culture to guide day-to-day operations with their partners. Cultural compatibility is also an essential in predicting DSCMP, CD, and FP. Culture including Dominant Characteristics, Organizational Leadership, Organizational Glue, Strategic Emphasis must be considered to maintain the intended relationship and the more crucial the outcomes to be created by the customer development. Managing the culture shift in a supply chain via a digital platform is just as important as managing culture change within company during times of strategic change such as the COVID-19 pandemic. In some respects, changing partners is simpler than changing workers, and it may be essential to "fire" a supplier if they don't get fit with the culture, even if they are otherwise excellent performers (Hanson & Melnyk, 2020). This study examined digital DSCMP techniques as a way to improve customer development and company performance in a developing nation. DSCMP methods directly improve both customer development and company success, according to the study's findings. Customer development has also been shown to significantly improve company performance. Finally, there was evidence of a partial mediation by CD on the influence of DSCMP techniques on FP. This study has some ramifications. Despite the rising interest in entrepreneurship and companies in research, there has been little investigation of firms’ SCM practices. This work is to scientifically investigate the impact of DSCMP procedures on CD. The outcomes show that, even in the extremely unpredictable environment of a developing country, DSCMP may help companies better appeal to, satisfy, and maintain customers to boost their FP. Our findings from configuration analyses add to the body of knowledge about organizational culture and DSCMP. We used this method to define organizational culture profiles and investigate their implications for a blend of DSCMP and firm culture research. We found four distinct profiles in our research. The firm structure profile had the most result-oriented, dynamic, and entrepreneurship risktaking approach, but the least hierarchical culture and it surpassed the other three profiles in terms of trust, leadership, and talent development. 6. Conclusion6. Conclusion The favorable and considerable impact of OC and DSCMP techniques on customer development and firm success shows that applying DSCMP practices may be a valuable tool for achieving growth and resilience for firms in developing countries. Effective use of digital technology in SCMP is also critical in enabling firms to improve customer development, and achieve better performance outcomes. Managers of firm thus need to devise and implement strategies for efficiently managing their supply chains. Entrepreneurs and managers of firms in underdeveloped nations should also be taught DSCMP techniques so that they can better operate their supply chains for improved CD and FP. Supply chain departments or units, led by a supply chain expert, should be established by larger firms and companies with complex relationships with supply chain partners. In addition to the marketing and sales strategies that are typically produced, a DSCMP strategy can be developed as part of business planning for businesses that are about to be established. The DSCMP plan should devise the supply chain process, develop appropriate suppliers and customers, specify how these core business SC stakeholders will be 59 My-Trinh Bui, Don Jyh-Fu Jeng, Huy Hung Ta 10.5709/ce.1897-9254.525DOI: CONTEMPORARY ECONOMICS Vol. 18 Issue 1 40-662024 managed, and establish protocols for customizing products, sharing information, and accelerating financial flows within the firm and across supply chain members. Such an approach will help to build an effective digital supply chain for firms, providing considerable benefits in terms of customer development and improved firm performance. LimitationsLimitations This study has some limitations. One flaw was that DSCMP procedures were looked at as a second-order construct that influences customer development and business success. As a result, the impact of each DSCMP technique on customer development and firm performance could not be investigated. There are several areas that would merit future investigation. Future ResearchFuture Research First, future research should look at the impact of specific DSCMP techniques and projects on customer development and company success. Further study into the influence of environmental contingencies and other control factors on the link between culture, DSCMP, customer development, and company success is also recommended. The literature on company DSCMP should be expanded by examining what accounts for the varying degrees of DSCMP among businesses to get insight into how to improve the adoption of DSCMP. Finally, more study on DSCMP in firms in developed-countries is recommended so that results may be compared to studies on firms in developing-countries, since environmental factors may play a role in the success of supply chain efforts (Asamoah et al., 2021). ReferencesReferences Akhtar, F., Wang, Q., & Huo, B. (2023). The effect of relational investments on supply chain quality integration: protection or constraint of legal bonds? International Journal of Quality & Reliability Management, ahead-of-print(ahead-of-print). https://doi.org/10.1108/IJQRM-12-2021-0455 Al-Omoush, K. S., de Lucas, A., & del Val, M. T. (2023). The role of e-supply chain collaboration in collaborative innovation and value-co creation. 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