Digital transformation capability and sustainable supply chain performance: The mediating role of supply chain traceability and corporate environmental ethics in pharmaceutical import and distribution enterprises

Abstract

Reason for writing: The increasing pressure of digital transformation and sustainability has reshaped supply chain management, particularly in highly regulated industries such as pharmaceuticals. Firms are required nSot only to improve operational efficiency but also to ensure environmental responsibility and compliance, making it essential to understand how digital capabilities contribute to sustainable outcomes. Problem: Despite extensive research, existing studies often examine digital transformation and sustainability performance separately, lacking an integrated explanation of the mechanisms through which digital transformation capability (DTC) leads to sustainability outcomes. This study addresses this gap by investigating the mediating roles of supply chain traceability (SCT) and corporate environmental ethics (CEE), as well as the moderating role of green transformational leadership (GTL). Methods: A quantitative research approach was employed using survey data collected from 262 managers in pharmaceutical importing and distribution SMEs in Vietnam. The study applied Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct, mediating, and moderating relationships within the proposed research model. Results: The findings reveal that DTC significantly enhances SCT and CEE, which in turn positively influence green process innovation (GPI). Among these mechanisms, SCT exhibits a stronger mediating effect than CEE. Furthermore, GPI has a strong positive impact on sustainable supply chain performance (SSCP), while GTL positively moderates this relationship. Conclusion: The study demonstrates that digital transformation contributes to sustainability primarily through system-based and process-oriented mechanisms rather than direct effects. The findings provide theoretical insights into mechanism-based sustainability models and offer practical implications for managers and policymakers to prioritize traceability systems and process innovation in achieving sustainable supply chain performance.