Digital capability as an enabler of sustainable supply chain management practices and sustainability performance: a case of Taiwan’s manufacturing sectors

Purpose Supply chain sustainability has attracted growing attention in the supply chain literature. Despite extensive research on both sustainable and digital supply chains, few studies explicitly examine how digital capabilities translate into tangible sustainability outcomes through operational practices. To address this gap, this study aims to examine the relationships among the supply chain’s digital capability, sustainable supply chain management practices and its sustainability performance across its economic, environmental and social dimensions. Design/methodology/approach Grounded in organizational information processing theory and the practice-based view, this study proposes a capability–practice–performance framework. Empirical analysis is based on 316 valid responses from ISO 14001-certified manufacturing firms in Taiwan. Structural equation modeling was used to test the hypotheses, and mediation effects were examined using the SPSS PROCESS approach. Findings Digital capability in the supply chain significantly strengthens sustainable supply chain management practices and improves the economic, environmental and social dimensions of supply chain sustainability. Sustainable supply chain management practices partially mediate the relationship between the supply chain’s digital capability and sustainability performance, indicating that the supply chain’s digital capability serves as a critical infrastructure for coordinating sustainability-oriented practices across supply chain networks. The findings further elucidate a dual-path mechanism: Digital capability of the supply chain enhances sustainability performance directly and indirectly via sustainable supply chain management practices. Research limitations/implications The cross-sectional design and Taiwan-industries focus limit generalizability. The findings provide actionable guidance for managers seeking to integrate digital transformation with sustainability strategies and strengthen collaborative governance across supply chain networks. Originality/value By integrating organizational information processing theory with a practice-based view, this study develops and empirically validates a capability–practice–performance model that elucidates a dual-path mechanism by which digital capability in the supply chain improves sustainability performance, both directly and indirectly through sustainable supply chain management practices.