Digital adoption and supply chain collaboration in a volatile, uncertain, complex and ambiguous business environment: Mediating roles of visibility and risk

Abstract

Background: The study was conducted in response to the challenges of a volatile, uncertain, complex and ambiguous (VUCA) business environment that pressures firms to enhance collaboration and resilience within their supply chains. Objectives: This study examined how the business environment and the degree of digital technology adoption influenced supply chain collaboration (SCC), while also assessing the mediating roles of supply chain visibility (SCVI) and supply chain risk management (SCRM). Method: A quantitative survey was performed with 180 manufacturing enterprises in Vietnam. The proposed model was tested using the partial least squares structural equation modelling (PLS-SEM) technique to evaluate direct and indirect relationships among variables. Results: The business environment positively affected technology adoption, SCVI, SCRM and SCC (p < 0.05). Technology adoption directly and indirectly influenced SCC through SCVI and SCRM. Both SCVI and SCRM significantly enhanced SCC, and the overall model explained 43.1% of the variance in SCC (R2 = 0.431). Conclusion: The findings indicated that while environmental dynamism stimulated digital transformation, SCVI remained the key driver that translated environmental pressures and technological capabilities into effective SCC. Contribution: Theoretically, the study extends the dynamic capability perspective by jointly considering environmental and digital determinants and by identifying SCVI as a catalyst for collaborative practice and performance in supply chains. Practically, it offers recommendations for policymakers and managers on fostering SCC through coordinated technical and managerial solutions, including digital adoption, enhanced visibility and integrated SCRM.