Digital Supply Chain Transformation and Operational Performance: The Role of Smart Technologies and Supply Chain Risk Management Capabilities in the Textile Manufacturing Industry of Pakistan

This study investigates how digital supply chain (DSC) initiatives translate into improved operational performance in the textile manufacturing industry of Pakistan. Although prior research largely confirms a positive association between digital supply chains and performance, limited attention has been given to the underlying capability-based mechanisms through which these benefits are realized, particularly in developing economies. Addressing this gap, the study examines the mediating roles of smart technologies and supply chain risk management capabilities. A quantitative, cross-sectional research design was adopted. Data were collected through a structured questionnaire from 329 managerial-level employees working in Pakistani textile manufacturing firms. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed using SmartPLS to test direct and indirect relationships among digital supply chain, smart technologies, supply chain risk management capabilities (resilience, responsiveness, and restoration), and operational performance (cost, productivity, and quality). The results reveal that digital supply chain has a strong and significant effect on smart technologies (β = 0.726, p < 0.001) and supply chain risk management capabilities. Smart technologies do not directly influence operational performance; instead, their impact is fully mediated by supply chain resilience and restoration. Supply chain resilience significantly improves cost (β = 0.368), productivity (β = 0.305), and quality performance (β = 0.361), while restoration positively affects all performance dimensions. Responsiveness shows mixed effects, with no significant influence on productivity. This study contributes by demonstrating a sequential and capability-based pathway through which digital supply chains enhance performance in an emerging economy. It extends resource-based view and dynamic capabilities theory by empirically validating smart technologies and risk management capabilities as critical mediators. The findings offer practical guidance for managers to prioritize capability development alongside digital investments and provide a foundation for future longitudinal and cross-industry research. Keywords: Digital supply chain; Smart technologies; Supply chain risk management; Operational performance; Textile manufacturing; Pakistan