Digitalization Mediates Supplier Collaboration, Technological Innovation and Supply Chain Sustainability

Abstract

Introduction: Supply chain sustainability is increasingly critical for halal food SMEs in Indonesia, driven by the growing halal industry and rising consumer demand for transparency and compliance with halal standards. However, many SMEs face challenges in incorporating sustainability into their supply chains. Factors such as supplier collaboration, technological innovation, and digitalization play key roles, but the impact of government policy as a moderating factor remains underexplored.

Objectives: This study examines the effects of supplier collaboration and technological innovation on supply chain sustainability, investigates the mediating role of digitalization, and analyzes the moderating effect of government policy.

Methods: Data from 200 halal food SME owners in Indonesia were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).

Results: The study finds that digitalization mediates the relationship between supplier collaboration, technological innovation, and supply chain sustainability. However, government policy weakens the positive relationship between collaboration and sustainability outcomes.

Conclusions: The research highlights the importance of strengthening digital capabilities and strategic collaboration to improve supply chain sustainability in the halal food sector.