A Cause and Effect Model for Digital Sustainable Supply Chain Competitiveness under Uncertainties: Enhancing Digital Platform

Abstract

This study provides insights into digitalization in sustainable supply chain management by establishing a structural set of attributes with causal interrelationships among them, as well as by reporting empirical findings on successful criteria for footwear supply chain practices in Indonesia. Sustainable supply chain management and digitalization are mutual benefits. However, there are unclear cause and effect interrelationships. This study aims to critically pinpoint digitalization to approach sustainability and is designed to help firms achieve supply chain competitiveness. The fuzzy Delphi method and fuzzy decision-making trial and evaluation laboratory are utilized, due to the fuzziness associated with human decision making and the complexity and uncertainty in the supply chain. Five aspects and seventeen criteria are validated. The findings indicate that four aspects, including digital platform effectiveness, digital communication belonging to the supply chain digitalization perspective, labour conditions, and manufacturing processes, are important to sustainable supply chain management. The top causal criteria, including logistics integration, logistics optimization, delivery speed, proactive action, and real-time inventory, are considered to assist firms in implementing better practices.