Achieving Supply Chain 4.0 and the Importance of Agility, Ambidexterity, and Organizational Culture: A Case of Indonesia

Abstract

This study explores the key determinants of Supply Chain 4.0 (SC4.0) maturity in the context of a developing country by examining the relationships between supply chain ambidexterity, supply chain agility, and the maturity of SC4.0. The study was carried out using the survey method involving 154 managers from Indonesian manufacturing companies. The SC4.0 maturity model was developed and tested using structural equation modeling. From our analysis, it was found that supply chain ambidexterity emphasizing on innovation positively influences the companies’ agility and SC4.0 maturity levels, and supply chain agility partially mediates supply chain ambidexterity. This paper contributes to the operationalization of SC4.0 maturity determinants that incorporate innovation and technological aspects and extends the extant literature by empirically elaborating the determinants and antecedents of SC4.0 maturity that may expedite the achievement of SC4.0 maturity. This implies that companies and supply chain professionals aiming at achieving their SC4.0 maturity should do so by being outward-looking and, at the same time, foster supply chain collaboration with external networks. This paper is pioneering the empirical study on SC4.0 and offers a means to achieving SC4.0 maturity through SC ambidexterity and SC agility, particularly in the context of a developing country.