Digitalization is essential for supply chain (SC) systems to thrive in the extremely dynamic and competitive business environment of the present day. The purpose of this study is to examine the role and the importance of absorptive capacity (ACAP) on supply chain innovation performance (SCIP), mediated by digital capability (DCAP), supply chain resilience (SCR), supply chain agility (SCA), and digital innovation (DI). The study has been designed to empirically investigate the hypothesized relationships on a sample of 116 firms across industries in Saudi Arabia, using a partial least-squares-based structural equation model (PLS-SEM). Based on the findings, all the hypothesized paths are supported, justifying that ACAP positively and significantly impacts DCAP, SCA, and SCR. Moreover, SCA and SCR partially mediated the relationship between ACAP and SCIP. This study contributes to the resource-based view (RBV) and a dynamic capability (DC) theories by examining how the innovation of digital technologies affects SCIP, providing empirical support to the ACAP and SCIP interaction through numerous mediators to develop SCIP, from which also many practical implications emerged. For instance, especially in the wake of the COVID-19 pandemic, businesses must improve their SC performance by building and integrating their ACAP to make the most of their digital-platform-based dynamic capabilities.

Companies, in emerging economies and beyond, struggle to develop integration mechanisms that deliver supply chain performance and competitive advantages. Those striving for organizational performance by streamlining supply chain processes must assess the challenges and benefits of employing technologies for supply chain integration. This study’s objective is to analyze the supply chain integration antecedents required to enable supply chain performance, competitive advantages, and organization performance. Although prior research indicates that the Internet of Things (IoT), as one of the enabling technologies, plays an instrumental role in enhancing organization performance through supply chain integration, no empirical tests have been performed before. Therefore, this study examines the direct and indirect effects of the IoT’s impact on organizational performance through different mediating variables—supply chain integration, supply chain performance, and competitive advantages. This study uses survey data from Saudi Arabian companies that adopted IoT-based applications in their supply chains. The results from partial least squares structural equation modeling indicate that the benefits and challenges of IoT adoption significantly affect supply chain integration. Moreover, supply chain integration partially mediates the relationship between IoT, supply chain performance, and competitive advantages while supply chain performance and competitive advantages mediate the relationship between supply chain integration and organization performance. This study offers theoretical implications regarding how dynamic capabilities are associated with supply chain integration and how they influence organizational performance; it also reveals valuable managerial insights.