Quantifying the Influencing Issues of Digital Integration with Supply Chain Using Graph Theory (GT)

Document Type : Research Paper

Authors

Department of Mechanical Engineering, JC Bose University of Science & Technology, Faridabad, Haryana-121006, India

Abstract

This study aims to develop a model that quantifies the key issues influencing digital integration within the supply chain (SC) as a single numerical value, termed the integrity index. This index value helps organisations in identifying and addressing various SC issues related to digital integration. The model calculates the integrity index by analysing the interactions among different issues involved in digital integration. The graph theoretic approach (GTA) technique is applied to examine the integrity index value by analysing the interactions among different issues involved in digital integration. In GTA, the various issues influencing the digital integration are identified, and a model with the help of a digraph is prepared based on their interdependencies. From this digraph, an adjacency matrix is created, and the permanent function of this matrix is computed to derive the integrity index. The integrity index is evaluated by using GTA in the context of Indian small and medium enterprises (SMEs). By using the GTA framework, the integrity index is also calculated in the best- and the worst-case scenarios. Findings from the study reveal that financial issues are the most influencing ones impacting digital integration, followed by organisational and technological issues, providing key focus areas for improvement.

Keywords

Main Subjects


Adu-Amankwa, K., & Daly, A. (2023). Securing innovation in digital manufacturing supply chains: An interdisciplinary perspective on intellectual property, technological protection measures and 3D printing/additive manufacturing. Journal of Intellectual Property Law and Practice, 18(8), 587–602. https://doi.org/10.1093/jiplp/jpad062
Afrifah, W., Epiphaniou, G., Ersotelos, N., & Maple, C. (2022). Barriers and opportunities in cyber risk and compliance management for data-driven supply chains. In Proceedings of the Annual Hawaii International Conference on System Sciences, 2022-Janua, 1812–1821. https://doi.org/10.24251/hicss.2022.225
Agrawal, P., & Narain, R. (2018). Digital supply chain management: An overview. IOP Conference Series: Materials Science and Engineering, 455(1), 12074.
Agrawal, P., Narain, R., & Ullah, I. (2020). Analysis of barriers in implementation of digital transformation of supply chain using interpretive structural modelling approach. Journal of Modelling in Management, 15(1), 297–317. https://doi.org/10.1108/JM2-03-2019-0066
Agrawal, S., Singh, R. K., & Murtaza, Q. (2016). Outsourcing decisions in reverse logistics: Sustainable balanced scorecard and graph theoretic approach. Resources, Conservation and Recycling, 108, 41–53. https://doi.org/10.1016/j.resconrec.2016.01.004
Agrawal, R., Surendra Yadav, V., Majumdar, A., Kumar, A., Luthra, S., & Arturo Garza-Reyes, J. (2023). Opportunities for disruptive digital technologies to ensure circularity in supply Chain: A critical review of drivers, barriers and challenges. Computers & Industrial Engineering, 178, 109140. https://doi.org/https://doi.org/10.1016/j.cie.2023.109140
Alora, A., & Barua, M. K. (2019). Barrier analysis of supply chain finance adoption in manufacturing companies. Benchmarking: An International Journal, 26(7), 2122–2145.
Angeles, R. (2009). Anticipated IT infrastructure and supply chain integration capabilities for RFID and their associated deployment outcomes. International Journal of Information Management, 29(3), 219–231. https://doi.org/10.1016/j.ijinfomgt.2008.09.001
Arampatzis, A. (2023). Supply chain attacks: One of the biggest cybersecurity threats of 2023. SupplyChainBrain. https://www.supplychainbrain.com/blogs/1-think-tank/post/37813-supply-chain-attacks-one-of-the-biggest-cybersecurity-threats-of-2023
Aravind Raj, S., Sudheer, A., Vinodh, S., & Anand, G. (2013). A mathematical model to evaluate the role of agility enablers and criteria in a manufacturing environment. International Journal of Production Research, 51(19), 5971–5984. https://doi.org/10.1080/00207543.2013.825381
Azamat, X. (2024). Rethinking digital borders to address jurisdiction and governance in the global digital economy. International Journal of Law and Policy, 2(1), 1–8.
Bani-Irshid, A. H., Hamasha, M. M., Al-Nsour, L., Mohammad, L., Al-Dabaibeh, A., Al-Majali, R., & Al-Daajeh, H. (2024). Supply chain risk assessment and mitigation under the global pandemic COVID-19. International Journal of Production Management and Engineering, 12(1), 43–63. https://doi.org/10.4995/ijpme.2024.19240
Basu, A., & Siems, T. F. (2004). The impact of e-business technologies on supply chain operations: A macroeconomics perspective. Federal Reserve Bank of Dallas, Research Department.
Birkel, H., Hohenstein, N.-O., & Hähner, S. (2023). How have digital technologies facilitated supply chain resilience in the COVID-19 pandemic? An exploratory case study. Computers & Industrial Engineering, 183, 109538. https://doi.org/https://doi.org/10.1016/j.cie.2023.109538
Bughin, J., Holley, A., & Mellbye, A. (2015). Cracking the digital code. McKinsey Global Survey Results. http://www.mckinsey.com/ business-functions/business-technology/our-insights/cracking-the-digital-code.
Buntz, B. (2016). Top 10 reasons people aren’t embracing the IoT. IoT World Today. https://www.iotworldtoday.com/security/top-10-reasons-people-aren-t-embracing-the-iot#close-modal
Büyüközkan, G., & Göçer, F. (2018). Digital supply chain: Literature review and a proposed framework for future research. Computers in Industry, 97, 157–177. https://doi.org/10.1016/j.compind.2018.02.010
Buyya, R., Vecchiola, C., & Selvi, S. T. (2013). Advanced topics in cloud computing. Mastering Cloud Computing, 373–427. https://doi.org/10.1016/b978-0-12-411454-8.00011-5
Cañas, H., Mula, J., & Campuzano-Bolarín, F. (2020). A general outline of a sustainable supply chain 4.0. Sustainability (Switzerland), 12(19), 1–17. https://doi.org/10.3390/su12197978
Cañas, H., Mula, J., Díaz-Madroñero, M., & Campuzano-Bolarín, F. (2021). Implementing industry 4.0 principles. Computers & Industrial Engineering, 158, 107379.
Chauhan, N. K., Kumar, V., & Dixit, S. (2023). A study of key challenges in implementation of digital supply Chain in the context of Indian SMEs. Lecture Notes in Mechanical Engineering, 23–32. https://doi.org/10.1007/978-981-99-1328-2_3
Chen, L., Moretto, A., Jia, F., Caniato, F., & Xiong, Y. (2021). The role of digital transformation to empower supply chain finance: Current research status and future research directions (Guest editorial). International Journal of Operations and Production Management, 41(4), 277–288. https://doi.org/10.1108/IJOPM-04-2021-838
Choi, T. M., & Luo, S. (2019). Data quality challenges for sustainable fashion supply chain operations in emerging markets: Roles of blockchain, government sponsors and environment taxes. Transportation Research Part E: Logistics and Transportation Review, 131(September), 139–152. https://doi.org/10.1016/j.tre.2019.09.019
Choudhury, A., Behl, A., Sheorey, P. A., & Pal, A. (2021). Digital supply chain to unlock new agility: A TISM approach. Benchmarking, 28(6), 2075–2109. https://doi.org/10.1108/BIJ-08-2020-0461
Clancy, D., Smith, D., & Valenta, V. (2024). The macroeconomic effects of global supply chain reorientation. In International Journal of Central Banking (Vol. 2024). https://doi.org/10.2139/ssrn.4722143
Dasgupta, A., Gill, A. Q., & Hussain, F. (2020). A review of general data protection regulation for supply chain ecosystem. In Innovative Mobile and Internet Services in Ubiquitous Computing: Proceedings of the 13th International Conference on Innovative Mobile and Internet Services in Ubiquitous Computing (IMIS-2019), 456–465.
de Araújo Lima, P. F., Crema, M., & Verbano, C. (2020). Risk management in SMEs: A systematic literature review and future directions. European Management Journal, 38(1), 78–94.
De Vass, T., Shee, H., & Miah, S. J. (2021). IoT in supply chain management: Opportunities and challenges for businesses in early industry 4.0 context. Operations and Supply Chain Management, 14(2), 148–161. https://doi.org/10.31387/oscm0450293
Dixit, S., & Raj, T. (2019). Quantifying the influence of FMS on the productivity of a firm. International Journal of Process Management and Benchmarking, 9(4), 447–468. https://doi.org/10.1504/IJPMB.2019.103416
Dixit, V. K., Malviya, R. K., Kumar, V., & Shankar, R. (2024). An analysis of the strategies for overcoming digital supply chain implementation barriers. Decision Analytics Journal, 10(October 2023), 100389. https://doi.org/10.1016/j.dajour.2023.100389
Ebunoluwa, J., Omorinsola Bibire S. L., Gbenga Sheriff, A., Chinazor Prisca, A., & Bayode Dona, S. (2024). Developing scalable data solutions for small and medium enterprises: Challenges and best practices. International Journal of Management & Entrepreneurship Research, 6(6), 1910–1935. https://doi.org/10.51594/ijmer.v6i6.1206
Frederico, G. F., Garza-Reyes, J. A., Anosike, A., & Kumar, V. (2020). Supply chain 4.0: Concepts, maturity and research agenda. Supply Chain Management, 25(2), 262–282. https://doi.org/10.1108/SCM-09-2018-0339
Geetha, N. K., & Sekar, P. (2016). Graph theory matrix approach - A review. Indian Journal of Science and Technology, 9(16), 1–4. https://doi.org/10.17485/ijst/2016/v9i16/79236
Genberg, H. (2020). ADBI Working Paper Series Digital Transformation : Some Implications for Financial and Macroeconomic Stability. Asian Development Bank Institute. 1139. https://www.adb.org/publications/digital-transformation-some-
Gunasekaran, A., Lai, K., & Cheng, T. C. E. (2008). Responsive supply chain: A competitive strategy in a networked economy. Omega, 36(4), 549–564.
Guo, C., Liu, X., Jin, M., & Lv, Z. (2016). The research on optimization of auto supply chain network robust model under macroeconomic fluctuations. Chaos, Solitons and Fractals, 89, 105–114. https://doi.org/10.1016/j.chaos.2015.10.008
Gupta, H., Yadav, A. K., Kusi-Sarpong, S., Khan, S. A., & Sharma, S. C. (2022). Strategies to overcome barriers to innovative digitalisation technologies for supply chain logistics resilience during pandemic. Technology in Society, 69, 101970.
Hammi, B., Zeadally, S., & Nebhen, J. (2023). Security threats, countermeasures, and challenges of digital supply chains. ACM Computing Surveys, 55(14s), 1–40.
Hofmeier, M., & Lechner, U. (2021). Operation digital Ant: A serious game approach to collect insider threat scenarios and raise awareness. ACM International Conference Proceeding Series, 14–19. https://doi.org/10.1145/3487405.3487655
Horváth, D., & Szabó, R. Z. (2019). Driving forces and barriers of Industry 4.0: Do multinational and small and medium-sized companies have equal opportunities? Technological Forecasting and Social Change, 146(March), 119–132. https://doi.org/10.1016/j.techfore.2019.05.021
Israel, B., Mahuwi, L., & Mwenda, B. (2023). A review of financial and non-financial measures of supply chain performance. International Journal of Production Management and Engineering, 11(1), 17–29. https://doi.org/10.4995/ijpme.2023.18797
Jamwal, A., & Agrawal, R. (2019). An Analytical hierarchy process approach to analyse the challenges to sustainable supply chain management in Indian automobile industries. In 7th International Conference on Logistics and Supply Chain Management., 28–36. https://ssrn.com/abstract=3917460
Jennings, R. (2023). Top 6 Supply Chain Challenges for 2023. Qad.Com. https://www.qad.com/blog/2023/09/top-6-supply-chain-challenges-for-2023
Kache, F., & Seuring, S. (2017). Challenges and opportunities of digital information at the intersection of Big Data Analytics and supply chain management. International Journal of Operations and Production Management, 37(1), 10–36. https://doi.org/10.1108/IJOPM-02-2015-0078
Khanzode, A. G., Sarma, P. R. S., Mangla, S. K., & Yuan, H. (2021). Modeling the Industry 4.0 adoption for sustainable production in Micro, Small & Medium Enterprises. Journal of Cleaner Production, 279, 123489. https://doi.org/10.1016/j.jclepro.2020.123489
Kinitzki, M., Sigle, N., & Hertweck, D. (2019). Status Quo Research on Technology Knowledge in SMEs. 173–179.
Kitching, J., & Blackburn, R. (1998). Intellectual property management in the small and medium enterprise (SME). Journal of Small Business and Enterprise Development, 5(4), 327–335. https://doi.org/10.1108/EUM0000000006797
Kozma, D., & Varga, P. (2020). Supporting digital supply chains by iot frameworks: Collaboration, control, combination. Infocommunications Journal, 12(4), 22–32. https://doi.org/10.36244/ICJ.2020.4.4
Kumar, R., Singh, R. K., & Dwivedi, Y. K. (2020). Application of industry 4.0 technologies in SMEs for ethical and sustainable operations: Analysis of challenges. Journal of Cleaner Production, 275, 124063. https://doi.org/10.1016/j.jclepro.2020.124063
Küsters, D., Praß, N., & Gloy, Y. S. (2017). Textile learning factory 4.0 – Preparing Germany’s textile industry for the Digital Future. Procedia Manufacturing, 9, 214–221. https://doi.org/10.1016/j.promfg.2017.04.035
Li, D., Fast-Berglund, Å., & Paulin, D. (2019). Current and future Industry 4.0 capabilities for information and knowledge sharing: Case of two Swedish SMEs. International Journal of Advanced Manufacturing Technology, 105(9), 3951–3963. https://doi.org/10.1007/s00170-019-03942-5
Li, J., Liu, M., & Liu, X. (2016). Why do employees resist knowledge management systems? An empirical study from the status quo bias and inertia perspectives. Computers in Human Behavior, 65, 189–200. https://doi.org/10.1016/j.chb.2016.08.028
Liboni, L. B., Cezarino, L. O., Jabbour, C. J. C., Oliveira, B. G., & Stefanelli, N. O. (2019). Smart industry and the pathways to HRM 4.0: implications for SCM. Supply Chain Management, 24(1), 124–146. https://doi.org/10.1108/SCM-03-2018-0150
Lindner, D., & Leyh, C. (2018). Organizations in transformation: Agility as consequence or prerequisite of digitization?. In W. Abramowicz & A. Paschke (Eds.), BT  - Business Information Systems (pp. 86–101). Springer International Publishing.
Lingkon, M. L. R., Sarfaraj, N. M., Islam, M. A., & Ahmmed, M. S. (2025). Analysis of the barriers to implement sustainable manufacturing practices in footwear sector of Bangladesh using graph theory and matrix approach. Journal of Future Sustainability, 5, 59–80. https://doi.org/10.5267/j.jfs.2025.3.001
Massimino, B., Gray, J. V., & Lan, Y. (2018). On the inattention to digital confidentiality in operations and supply chain research. Production and Operations Management, 27(8), 1492–1515. https://doi.org/10.1111/poms.12879
Mishra, R. (2015). Journal of Manufacturing Technology Management, 26(4), 515–535.
Nowicka, K. (2019). Digital innovation in the supply chain management. Prace Naukowe Uniwersytetu Ekonomicznego We Wrocławiu, 63(8), 202–214. https://doi.org/10.15611/pn.2019.8.16
OECD. (2021). The digital transformation of SMEs, OECD studies on SMEs and entrepreneurship. In OECD Publishing, Paris. https://doi.org/10.1787/bdb9256a-en.
Pan, S., Trentesaux, D., McFarlane, D., Montreuil, B., Ballot, E., & Huang, G. Q. (2021). Digital interoperability in logistics and supply chain management: State-of-the-art and research avenues towards Physical Internet. Computers in Industry, 128, 103435. https://doi.org/10.1016/j.compind.2021.103435
Raj, A., Dwivedi, G., Sharma, A., Lopes de Sousa Jabbour, A. B., & Rajak, S. (2020). Barriers to the adoption of industry 4.0 technologies in the manufacturing sector: An inter-country comparative perspective. International Journal of Production Economics, 224(October 2019), 107546. https://doi.org/10.1016/j.ijpe.2019.107546
Rashid, A., Rasheed, R., Ngah, A. H., Pradeepa Jayaratne, M. D. R., Rahi, S., & Tunio, M. N. (2024). Role of information processing and digital supply chain in supply chain resilience through supply chain risk management. Journal of Global Operations and Strategic Sourcing, 17(2), 429–447. https://doi.org/10.1108/JGOSS-12-2023-0106
Ruzzier, M., Antoncic, B., Hisrich, R. D., & Konecnik, M. (2007). Human capital and SME internationalization: A structural equation modeling study. Canadian Journal of Administrative Sciences, 24(1), 15–29. https://doi.org/10.1002/cjas.3
Saarikko, T., Westergren, U. H., & Blomquist, T. (2020). Digital transformation: Five recommendations for the digitally conscious firm. Business Horizons, 63(6), 825–839. https://doi.org/10.1016/j.bushor.2020.07.005
Schröder, C. (2016). The challenges of industry 4.0 for small and medium-sized enterprises. The Friedrich-Ebert-Stiftung, 28. www.fes-2017plus.de
Shukla, R. K., Garg, D., & Agarwal, A. (2011). Understanding of supply chain: A literature review. International Journal of Engineering Science and Technology, 3(3), 2059–2072.
Singh, V., & Singru, P. M. (2018). Graph theoretic structural modeling based new measures of complexity for analysis of lean initiatives. Journal of Manufacturing Technology Management, 29(2), 329–349.
Sivathanu, B., & Pillai, R. (2018). Smart HR 4.0 – how industry 4.0 is disrupting HR. Human Resource Management International Digest, 26(4), 7–11. https://doi.org/10.1108/HRMID-04-2018-0059
Spieske, A., Gebhardt, M., Kopyto, M., Birkel, H., & Hartmann, E. (2023). The future of industry 4.0 and supply chain resilience after the COVID-19 pandemic: Empirical evidence from a Delphi study. Computers & Industrial Engineering, 181, 109344. https://doi.org/https://doi.org/10.1016/j.cie.2023.109344
Wang, C., Walker, E., & Redmond, J. (2007). Explaining the lack of strategic planning in SMEs: The importance of owner motivation. International Journal of Organizational Behavior, 12(121), 1–16.
Weerabahu, W. M. S. K., Samaranayake, P., Nakandala, D., & Hurriyet, H. (2023). Digital supply chain research trends: A systematic review and a maturity model for adoption. Benchmarking, 30(9), 3040–3066. https://doi.org/10.1108/BIJ-12-2021-0782
Xu, J. (2014). Managing digital enterprise: Ten essential topics. Springer.
Zaman, S. I., Khan, S., Zaman, S. A. A., & Khan, S. A. (2023). A grey decision-making trial and evaluation laboratory model for digital warehouse management in supply chain networks. Decision Analytics Journal, 8(June), 100293. https://doi.org/10.1016/j.dajour.2023.100293
Zoghi, F. S. (2017). Risk management practices and SMEs: An empirical study on Turkish SMEs. International Journal of Trade, Economics and Finance, 8(2), 123–127. https://doi.org/10.18178/ijtef.2017.8.2.550