Factors influencing the digital supply chain implementation effectiveness in Penang’s electrical and electronics manufacturing industry

Digital supply chain is vital to improve organizational competitiveness. This research aims to examine the factors influencing the digital supply chain implementation effectiveness in Penang’s electrical and electronics manufacturing industry. The study applied Technological, Organizational, and Environment (TOE) framework as the guiding principle. A self-administered questionnaire distributed to 127 respondents was analyzed using multiple regression analysis via the Statistical Package for Social Sciences (SPSS) software version 25. The collected data were analysed for descriptive, reliability, validity, and relative importance index analysis. The empirical findings of this study showed that IT infrastructure has the strongest influence on the implementation effectiveness of the digital supply chain. This was followed by top management support, and then by digital skills. However, this study did not find empirical evidence that government policy is a significant determinant in the companies surveyed. This research offers several important contributions to practice and knowledge regarding the digital supply chain implementation effectiveness. Industry practitioners should have clear vision in their business strategy to capitalize the benefits of digital supply chain. With the intense penetration of digital supply chain, the practitioner should be alerted to keep up with the velocity of change and fill up their digital talent gaps besides fundamental IT technological readiness. Government policy makers should strive to create a more attractive enabling environment to facilitate the digitalization deployment in the industry while also supporting individual government departments with their own transformation efforts. This study advances the extant literature in this field. Future research directions are also furnished.