Integrating Digital Transformation and Sustainability for Operational Excellence in Procurement and Supply Chain Management: An Empirical Framework for the Middle East Region

This study investigates how digitalization and sustainability are two enablers in achieving operational excellence in supply chain management and procurement in the GCC region. The study is of a quantitative study conducted through secondary data analysis, investigates particular technological innovations (i.e. artificial intelligence (AI), blockchain, automation, and data analytics), and sustainability practices (i.e. green sourcing, waste management, and ethical purchasing practices) which may occur within the GCC region, which results in improved outcomes. The study finds that digital transformation provides considerable amounts of transparency, efficiency, and the ability to make accurate decisions, while sustainable practices demonstrate increased resilience and trust from stakeholders. Furthermore, the results of digital transformation suggest that the UAE and Saudi Arabia are comparatively more mature on the basis of policy, investment, and sustainability maturity than Oman and Bahrain. The tested relationships that were both positive and significant included (1) digital transformation and operational effectiveness (r = 0.72); (2) sustainability and procurement capability (r = 0.68); and when both constructs were analyzed together, explained as much as 60 percent of the variance of operational excellence within the GCC. This study reports that incorporating sustainable practices into an organization's core strategies in addition to digital transformation will improve supply chain agility and performance and result in the ability to achieve and contribute toward world-class sustainability goals.