The impact of sustainable development strategy on sustainable supply chain firm performance in the digital transformation era

Abstract Availability of limited resources presents the need for sustainable development strategies to achieve sustainable performance. However, in the era of digitalization and globalization many researchers explored the role of digital technologies in improving sustainable performance. However, the literature on the role of collaboration and coordination in a digitally enabled supply chain (SC) to achieve sustainability is still lacking. This study aims to investigate the effect of supply chain collaboration and coordination (SCC), sustainable development strategy (SDS), digital transformation (DIT), and collaborative advantages (COA) on sustainable supply chain firm performance (SSCFP). The conceptual model is based on the relational view (RV), transaction cost economics (TCE), technology, organization and environment (TOE), and resource‐based view (RBV) theories. This study utilizes structural equation modeling (SEM) to analyze data collected from 361 respondents of the automotive industry in India. The findings show that SCC positively affects SDS and DIT. SDS positively affects DIT, COA, and DIT positively affects SSCFP. DIT fully mediates the relationship between SCC and COA. The study suggests that managers can apply SCC, SDS, and DIT in series to achieve sustainable performance. However, the COA can only be enhanced in the digitalized SC. The study provides empirical evidence to policymakers and practitioners for the synergy between SCC, SDS, DIT, and COA to achieve sustainable performance in the SC's manufacturing firm.