Digital Supply Chain Integration and Organizational Performance: A Conceptual Review of the Role of Technological Capability in Malaysian Metal Industries

ABSTRACT: The rapid advancement of Industry 4.0 technologies has transformed supply chain management practices, compelling manufacturing organizations to adopt digital solutions to enhance operational efficiency and competitiveness. In Malaysia, the metal industry plays a crucial role in supporting key sectors such as construction, automotive, aerospace, and engineering. However, the industry continues to face challenges related to supply chain disruptions, increasing operational costs, and growing global competition. Digital Supply Chain Integration (DSCI) has emerged as a strategic approach that enables organizations to improve information sharing, collaboration, and coordination across supply chain networks. Despite its potential benefits, the relationship between DSCI and organizational performance remains inconclusive in the existing literature, suggesting the need to examine underlying organizational capabilities that facilitate successful digital transformation. This conceptual review explores the role of technological capability as a critical mechanism linking DSCI and organizational performance in Malaysian metal industries. Drawing upon the Resource-Based View (RBV) and Dynamic Capability Theory (DCT), the paper synthesizes existing literature to develop a conceptual framework that explains how technological capability enables firms to leverage digital integration initiatives and achieve superior performance outcomes. The review proposes that technological capability, encompassing technology infrastructure, digital skills, technology knowledge, and innovation capability, mediates the relationship between DSCI and organizational performance. The paper contributes to the growing body of knowledge on digital transformation and supply chain management by providing theoretical insights and practical implications for managers and policymakers. Furthermore, it identifies research gaps and offers directions for future empirical studies within the context of Malaysian manufacturing industries.

KEYWORDS : Digital Supply Chain Integration, Technological Capability, Organizational Performance