The Impact of Supply Chain Digitalization on Competitive Advantage at Maersk company in Saudi Arabia

Abstract

This study examines the impact of supply chain digitalization on competitive advantage at Maersk in Saudi Arabia. Digitalization is operationalized through internal functional integration supported by enterprise resource planning (ERP) systems and interorganizational information sharing supported by Internet of Things (IoT) connectivity. A descriptive-analytical approach was adopted, using a structured questionnaire with a five-point Likert scale. Responses from 66 employees were suitable for analysis. Cronbach’s alpha for the 20-item instrument was 0.933, indicating high internal consistency. Both digitalization dimensions were rated very highly: ERP-supported integration had a mean of 4.38 and an average item standard deviation of 0.67, while IoT-supported information sharing had a mean of 4.26 and an average item standard deviation of 0.77. Competitive advantage had an overall mean of 4.24. Indicators of internal operational capabilities, including continuous improvement and responsiveness, ranked above ultimate outcomes such as market share and entry into new markets. Response dispersion showed a systematic pattern: internal integration items exhibited less variation than items concerning information exchange with external partners, suggesting more consistent willingness to cooperate than execution of cooperation. Simple linear regression identified a strong, positive, statistically significant relationship between digitalization and competitive advantage (R = 0.757; R² = 0.574; F(1,64) = 86.128; reported p < 0.001). Digitalization thus explained approximately 57.4% of the variance in competitive advantage. Drawing on the resource-based view and dynamic capabilities perspective, the study argues that returns on digital investment depend on organizational routines built around technology. Recommendations address system integration, partner segmentation by digital maturity, data governance, and workforce development. Measurement and research-design limitations constrain generalizability and causal interpretation.