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

Authors and Affiliations

  • 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

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Keywords:

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.

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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