DETERMINANTS OF SUSTAINABLE OPERATIONS EXCELLENCE: THE MEDIATING EFFECTS OF SUPPLY CHAIN INTEGRATION AND DIGITAL TECHNOLOGY ADOPTION

Abstract

Operational efficiency is essential for optimizing resource utilization and streamlining processes, resulting in cost savings and increased productivity. The aim of this study is to examine the effects of different drivers on the operational excellence of organisations in Saudi Arabia. The study examined the mediating role of supply chain integration and digital technology adoptability. Data were collected from 290 employees across multiple departments in various organisations in Saudi Arabia. The researchers utilised a self-administered questionnaire, a cross-sectional research design, and a quantitative research approach. The study found that supply chain integration and digital technology adaptability had a significant impact on sustainable operational excellence. The study found significant effects of Eco-innovation, control operations process optimisation systems, and operations risk management systems on supply chain integration. This research also found no significant influence of Eco-innovation and process operations management systems on digital adaptability. In addition, the results revealed that supply chain integration and digital technology adaptability act as significant mediators between various factors and operational excellence. The study provides theoretical insight by emphasising the significance of key drivers of operational excellence, such as sustainability, eco-innovation, risk management, and process optimisation. Further, the study illustrates the limited impact of traditional production strategies. The study highlights the practical importance of organisations prioritising certain factors to improve operational performance. The study specifically identifies supply chain integration and digital technology adoption as significant mediators to optimise operations.