Effect of Supply Chain Information Exchange Capability on Operational Performance: The Mediating Role of Digital Transformation and Moderating Role of Organizational Culture in Manufacturing SMEs

Abstract

Purpose:
This study investigates how supply chain information exchange capability (SCIEC) effects operational performance (OP) in manufacturing SMEs, exploring the mediating role of digital transformation (DT) and the moderating effect of organizational culture (OC).

Design/methodology/approach:
A conceptual framework grounded in the Resource-Based View and Contingency Theory is developed and tested using structural equation modeling on data collected from 687 manufacturing SMEs in Pakistan.

Findings:
Results show that SCIEC does not directly impact operational performance. Instead, its effect is mediated by digital transformation and further moderated by organizational culture. The findings suggest that SCIEC alone is insufficient; its activation through digital tools and alignment with supportive cultural norms is necessary for performance improvement.

Research limitations/implications:

The study uses cross-sectional, self-reported data from a single country, limiting causal inference and generalizability. Future research should use longitudinal or multi-country designs and explore additional organizational moderators.

Practical implications:

Managers should prioritize cultural readiness and digital capability development to realize the full value of supply chain information exchange initiatives.

Social implications:

This study offers practical insights for policymakers, SME associations, and development agencies aiming to foster inclusive economic growth through digital industrialization. By identifying the conditions under which supply chain information exchange contributes to performance, the research supports the design of targeted programs to enhance digital capability and cultural adaptability in small firms. In developing economies where SMEs represent the backbone of employment and production, improving their digital readiness and cultural alignment can accelerate national competitiveness, reduce economic inequality, and enhance social resilience in the face of global disruptions.

Originality/value:
This research extends prior literature by highlighting the conditional nature of SCIEC's effectiveness and offering a dynamic view of capability deployment in SMEs.