The purpose: This study examines the impact of digital logistics capabilities on production performance in the Jordanian dairy industry, while also investigating the moderating effect of sustainability practices. Approach: The quantitative approach was used. The primary data were gathered from 150 production managers and supply chain experts through a structured questionnaire. Results: Automation integration (β = 0.333, p < .001), product traceability (β = 0.235, p < .001), and spot inventory management (β = 0.415, p < .001) positively impacted production performance, while sustainability practices had no direct effect (β = –0.205, p = .102). Sustainability also hurt product traceability (β = –0.341, p < .001) and a positive effect on spot inventory management (β = 0.175, p = .001). The model explained 64% of the variance in performance (R² ≈ .64). Conclusions: The direct as well as moderating effects of sustainability practices were examined using structural equation modelling. These results contribute to the engineering and production literature explaining how digital logistics innovations manifest themselves in operational benefits across varying sustainability settings.
Albhirat et al. (Sat,) studied this question.
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