Integrating value chains in digital transformation: strategies for effective integration

Purpose In the current digital landscape, optimizing and streamlining value chains is imperative for organizations to maintain competitiveness and meet evolving customer demands. This study aims to investigate the impact of value co-creation between supply chain engagement and digital transformation on the organization’s resource commitment, focusing on how enterprises adjust their resource commitment and influence on operational strategy. Specifically, the research explores the relationship of supply chain engagement, digital transformation, functional resources and organizational strategy. Design/methodology/approach Survey data consisting of 252 manufacturing firms is used to study the supply chain engagement and digital transformation value co-creation. Findings The findings indicate that digital transformation between supply chain engagement and the functional resource commitment mediates the relationship between supply chain engagement, resource commitment and operational strategy, which supports the idea of a value co-creation relationship. When firms and supply chain engagement to target efforts on functional resource commitment, digital transformation can be directed toward the development of an operational strategy. Originality/value This study contributes to understanding the mechanisms of value co-creation in supply chains by examining the relationships between supply chain engagement, functional resources, operational strategy and the mediating role of digital transformation. The findings not only extend theoretical frameworks by integrating the resource-based view and value co-creation theory but also offer practical guidance for firms seeking to achieve a sustainable competitive advantage in today’s fast-paced business environment.