Supply chain operation is more competitive in a dynamic business environment. Developing supply chain capability is, hence, important for gaining a competitive advantage and overall improved supply chain performance. The purpose of this study is to explore the potential of digital technologies to enhance supply chain performance and for firms to gain competitive advantage through improved supply chain capabilities. This study, through a survey questionnaire, gathered a total of 150 sample data from supply chain executives and managers in the ready-made garments (RMG) industry in Bangladesh. Findings of the study demonstrate that the digital supply chain is a significant contributor to improving the supply chain capabilities of RMG firms, and it subsequently leads to competitive advantage with a direct positive effect on firms’ supply chain performance. The findings also indicate that digital technology has a direct effect on supply chain capability and supply chain performance in RMG firms. Based on these empirical findings, the study draws conclusion that digital technology integration in the supply chain would have a positive contribution to supply chain agility and flexibility, which would enable firms to effectively engage supply chain partners in dealing with unexpected situations in business operations. This study contributes to the current literature on digital supply chain capabilities, and it also provides insights for supply chain managers, policymakers, and practitioners in the fields of supply chains, logistics, and business performance.

Background: This study explores the relationship among various supply chain management practices, including customer relationship management, lean practices, use of information technology, and quality of information sharing with operational performance in the readymade garments industry of Bangladesh. It also examines the mediating role of quality of information sharing in these relationships. Methods: Data were collected from 80 readymade garment companies across five different geographical locations, with companies of varying sizes (large, medium, and small), involving 365 respondents with a response rate of 65%. A self-administered questionnaire survey was conducted, and Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied for the analysis. Results: The results indicate that all four practices significantly enhance operational performance, while customer relationship management and use of information technology also improve performance indirectly through quality of information sharing, unlike lean practices. Conclusions: The findings suggest that supply chain managers and stakeholders can improve operational performance by implementing supply chain management practices and understanding the complexities of their interrelationships.