The Impact of Digital Logistics Capabilities on Production Performance in The Manufacturing Sector: The Moderating Role of Sustainability Practices

  • Authors

    • Muath Albhirat Business School, Amman Arab University
    • Mahmoud Allahham University Utara Malaysia, Malaysia
    • Khalil Alkhatib Business School, Amman Arab University
    • Wasef Almajali Business School, Amman Arab University
    • Zain Bashtawi University Utara Malaysia, Malaysia
    • Lana Alawrtani Business School, Luminus Technical University College
    https://doi.org/10.14419/6q8vmz70

    Received date: July 25, 2025

    Accepted date: August 28, 2025

    Published date: September 6, 2025

  • Real-time inventory management, Automated Process Integration, Product Traceability. Production Performance, Sustainability

  • Abstract

    The purpose: This study examines the impact of digital logistics capabilities on production performance in the Jordanian dairy industry, while also investigating the moderating effect of sustainability practices.

    Approach: The quantitative approach was used. The primary data were gathered from 150 production managers and supply chain experts through a structured questionnaire.

    Results: Automation integration (β = 0.333, p < .001), product traceability (β = 0.235, p < .001), and spot inventory management (β = 0.415, p < .001) positively impacted production performance, while sustainability practices had no direct effect (β = –0.205, p = .102). Sustainability also hurt product traceability (β = –0.341, p < .001) and a positive effect on spot inventory management (β = 0.175, p = .001). The model explained 64% of the variance in performance (R² ≈ .64).

    Conclusions: The direct as well as moderating effects of sustainability practices were examined using structural equation modelling. These results contribute to the engineering and production literature explaining how digital logistics innovations manifest themselves in operational benefits across varying sustainability settings.

  • References

    1. A, J. G., Nastiti, H., Astuti, M., & Dm, B. (2024). Application of Repacking Design to Improve Performance and Brand Awareness of Griya UKM Cinere Products , Depok City Penerapan Desain Repacking dalam Meningkatkan Performa dan Brand Awarness Produk Griya UKM Cinere Kota Depok. 3(3), 157–168.
    2. Adiputra, R. F. (2024). Gudang Jurnal Multidisiplin Ilmu Strategi Digital Marketing Dalam Membangun Brand Awareness Pada Brand Minuman Haus ! 2, 207–212.
    3. Ahmed, W. A. H., & MacCarthy, B. L. (2023). Blockchain-enabled supply chain traceability – How wide? How deep? International Journal of Production Economics, 263(April), 108963. https://doi.org/10.1016/j.ijpe.2023.108963
    4. Allahham, M., Sharabati, A. A. A., Al-Sager, M., Sabra, S., Awartani, L., & Khraim, A. S. L. (2024). Supply chain risks in the age of big data and artificial intelligence: The role of risk alert tools and managerial apprehensions. Uncertain Supply Chain Management, 12(1), 399–406. https://doi.org/10.5267/j.uscm.2023.9.012
    5. Amini, M., & Javid, N. J. (2023). A Multi-Perspective Framework Established on Diffusion of Innovation (DOI) Theory and Technology, Organi-zation and Environment (TOE) Framework Toward Supply Chain Management System Based on Cloud Computing Technology for Small and Me-dium Enterprises. International Journal of Information Technology and Innovation Adoption, 11(8), 1217–1234. https://ssrn.com/abstract=4340207
    6. Anupkumar Dhore, Rameshwar Harkal, & Mayuri Darokar. (2024). Exploring the effects of digital marketing practices in India: A comprehensive analysis. Journal of Management and Science, 14(1), 92–96. https://doi.org/10.26524/jms.14.12
    7. Astanakulov, O., Balbaa, M., & Ibrohimjon, F. (2024). Investigating the Impact of Artificial Intelligence on Digital Marketing Tactics Strategies Using Neutrosophic Set Investigating the Impact of Artificial Intelligence on Digital Marketing Tactics Strategies Using Neutrosophic Set. Febru-ary. https://doi.org/10.54216/IJNS.230315
    8. Atieh Ali, A. A., Sharabati, A. A., Alqurashi, D. R., Shkeer, A. S., & Allahham, M. (2024). The impact of artificial intelligence and supply chain collaboration on supply chain resilience: Mediating the effects of information sharing. Uncertain Supply Chain Management, 12, 1801–1812. https://doi.org/10.5267/j.uscm.2024.3.002
    9. Bae, H. (2012). An analysis of gaps in performance among development stages of integration in SCM. Journal of International Logistics and Trade, 10(3), 85–104. https://doi.org/10.24006/jilt.2012.10.3.85
    10. Banerjee, R., & Roy, R. (2024). Deception in the Digital Age : How SEO Poisoning Undermines Online Trust. 3(3).
    11. Bani, A. Y. A.; Husseini, R.; Abu-, I. A.; Khamis, K.; Ziani, A. Measuring the ROI of paid advertising campaigns in digital marketing and its effect on business profitability. Uncertain Supply Chain Manag. 2024, 12, 1275–1284. https://doi.org/10.5267/j.uscm.2023.11.009
    12. Bell, D. R.; Gallino, S.; Moreno, A. Offline showrooms in omnichannel retail: Demand and operational benefits. Manag. Sci. 2018, 64, 1629–1651. https://doi.org/10.1287/mnsc.2016.2684
    13. Bilal, M.; Ahmad, A.; Ullah, M.; Ahmad, W.; Manzoor, S. R. Influencer Marketing and Consumer Purchase Intention: A Conceptual Holistic Mod-el. Int. J. Bus. Manag. Sci. 2024, 5, 2024. www.ijbms.orghttp://www.ijbms.org
    14. Browder, R. E.; Dwyer, S. M.; Koch, H. Upgrading adaptation: How digital transformation promotes organizational resilience. Strateg. Entrep. J. 2024, 18, 128–164. https://doi.org/10.1002/sej.1483
    15. Cheng, Y.; Hung-Baesecke, C. J. F.; Chen, Y. R. R. Social Media Influencer Effects on CSR Communication: The Role of Influencer Leadership in Opinion and Taste. Int. J. Bus. Commun. 2024, 61, 336–359. https://doi.org/10.1177/23294884211035112
    16. Chittipaka, V.; Kumar, S.; Sivarajah, U.; Bowden, J. L. H.; Baral, M. M. Blockchain Technology for Supply Chains operating in emerging markets: an empirical examination of technology-organization-environment (TOE) framework. Ann. Oper. Res. 2023, 327, 465–492. https://doi.org/10.1007/s10479-022-04801-5
    17. Daoud, M. K.; Taha, S.; Al-Qeed, M.; Alsafadi, Y.; Bani Ahmad, A. Y. A.; Allahham, M. q. Int. J. Data Netw. Sci. 2024, 8, 235–242. https://doi.org/10.5267/j.ijdns.2023.9.028
    18. Deb, S. K. Promoting tourism business through digital marketing in the new normal era: a sustainable approach. 2022, September. https://doi.org/10.1108/EJIM-04-2022-0218
    19. Dengra, B. M. Impact of Celebrity Endorsement on Customer’s Buying Behaviour with Reference to Indore City. 2024, 05003.
    20. Bani, A.Y.A.; Husseini, R.; Abu-, I.A.; Khamis, K.; Ziani, A. Measuring the ROI of paid advertising campaigns in digital marketing and its effect on business profitability. Uncertain Supply Chain Manag. 2024, 12, 1275–1284. https://doi.org/10.5267/j.uscm.2023.11.009
    21. Bell, D.R.; Gallino, S.; Moreno, A. Offline showrooms in omnichannel retail: Demand and operational benefits. Manag. Sci. 2018, 64, 1629–1651. https://doi.org/10.1287/mnsc.2016.2684
    22. Bilal, M.; Ahmad, A.; Ullah, M.; Ahmad, W.; Manzoor, S.R. Influencer Marketing and Consumer Purchase Intention: A Conceptual Holistic Model. Int. J. Bus. Manag. Sci. 2024, 5(1). www.ijbms.org
    23. Browder, R.E.; Dwyer, S.M.; Koch, H. Upgrading adaptation: How digital transformation promotes organizational resilience. Strateg. Entrep. J. 2024, 18, 128–164. https://doi.org/10.1002/sej.1483
    24. Cheng, Y.; Hung-Baesecke, C.J.F.; Chen, Y.R.R. Social Media Influencer Effects on CSR Communication: The Role of Influencer Leadership in Opinion and Taste. Int. J. Bus. Commun. 2024, 61, 336–359. https://doi.org/10.1177/23294884211035112
    25. Chittipaka, V.; Kumar, S.; Sivarajah, U.; Bowden, J.L.H.; Baral, M.M. Blockchain Technology for Supply Chains operating in emerging markets: An empirical examination of technology-organization-environment (TOE) framework. Ann. Oper. Res. 2023, 327, 465–492. https://doi.org/10.1007/s10479-022-04801-5
    26. Daoud, M.K.; Taha, S.; Al-Qeed, M.; Alsafadi, Y.; Bani Ahmad, A.Y.A.; Allahham, M. q. Int. J. Data Netw. Sci. 2024, 8, 235–242. https://doi.org/10.5267/j.ijdns.2023.9.028
    27. Deb, S.K. Promoting tourism business through digital marketing in the new normal era: A sustainable approach. Eur. J. Innov. Manag. 2022, Sep-tember. https://doi.org/10.1108/EJIM-04-2022-0218
    28. Dengra, B.M. Impact of Celebrity Endorsement on Customer’s Buying Behaviour with Reference to Indore City. 2024, 05003.
    29. Eissn, I.; Brand, O.F.; On, A.; Sinaro, C.V. Utilization of Social Media Instagram As the Formation. 2024, 22, 131–144. https://doi.org/10.36276/mws.v22i1.623
    30. Eloise Rose, D.; Van Der Merwe, J.; Jones, J. Digital Marketing Strategy in Enhancing Brand Awareness and Profitability of E-Commerce Compa-nies. APTISI Trans. Manag. 2024, 8, 160–166. https://doi.org/10.33050/atm.v8i2.2277
    31. Grzywaczewski, A.; Iqbal, R.; Shah, N.; James, A. E-marketing strategy for businesses. Proc. IEEE Int. Conf. E-Bus. Eng. ICEBE 2010, Dec., 428–434. https://doi.org/10.1109/ICEBE.2010.61
    32. Hameed, F.; Qayyum, A.; Khan, F.A. A new trend of learning and teaching: Behavioral intention towards mobile learning. J. Comput. Educ. 2024, 11(1). https://doi.org/10.1007/s40692-022-00252-w
    33. Hatamlah, H.; Allan, M.; Abu-Alsondos, I.; Shehadeh, M.; Allahham, M. The role of artificial intelligence in supply chain analytics during the pan-demic. Uncertain Supply Chain Manag. 2023, 11, 1175–1186. https://doi.org/10.5267/j.uscm.2023.4.005
    34. Haudi. The Impact Of Digital Transformation On Consumer Behavior And Marketing Strategies. Int. J. Econ. Lit. (INJOLE) 2024, 2(1), 167–179. https://injole.joln.org/index.php/ijle/article/view/59/67
    35. Horne, J.T. Should advertisers use generic ad content or specific ad content when marketing apartments with Google Ads? n.d.
    36. Huynh, P.H. Enabling circular business models in the fashion industry: the role of digital innovation. Int. J. Product. Perform. Manag. 2022, 71, 870–895. https://doi.org/10.1108/IJPPM-12-2020-0683
    37. Jawabreh, O.; Baadhem, A.M.; Ali, B.J.A.; Atta, A.A.B.; Ali, A.; Al-Hosaini, F.F.; Allahham, M. The Influence of Supply Chain Management Strategies on Organizational Performance in Hospitality Industry. Appl. Math. Inf. Sci. 2023, 17, 851–858. https://doi.org/10.18576/AMIS/170511
    38. Kassa, A.; Kitaw, D.; Stache, U.; Beshah, B.; Degefu, G. Artificial intelligence techniques for enhancing supply chain resilience: A systematic liter-ature review, holistic framework, and future research. Comput. Ind. Eng. 2023, 186, 109714. https://doi.org/10.1016/j.cie.2023.109714
    39. Knuuttila, A. The Potential Benefits and Challenges of Adopting AI-tools such as ChatGPT in Marketing Communications and Search Engine Op-timization. 2024. https://www.theseus.fi/bitstream/handle/10024/853453/Knuuttila_Anni.pdf?sequence=2
    40. Ahmed, Wafaa AH, and Bart L. MacCarthy. "Blockchain-enabled supply chain traceability–How wide? How deep?." International Journal of Pro-duction Economics 263 (2023): 108963.‏

  • Downloads

  • How to Cite

    Albhirat , M. ., Allahham , M. ., Alkhatib, K. . ., Almajali , W. ., Bashtawi, Z., & Alawrtani, L. . (2025). The Impact of Digital Logistics Capabilities on Production Performance in The Manufacturing Sector: The Moderating Role of Sustainability Practices. International Journal of Basic and Applied Sciences, 14(5), 150-158. https://doi.org/10.14419/6q8vmz70