1. Introduction
COVID-19 has put many business organizations into a financial bad patch; some of them have shut down entirely, making recovery very difficult [
1]; this also has a major influence on enterprises’ operations, sales, and production, having an adverse effect on firm performance [
2]. According to [
3], over ninety-four percent of the top one thousand companies have suffered consequences from the COVID-19 outbreak. Additionally, global exports of goods were USD 17.6 trillion in 2020, a 7.4% fall from the previous year. However, in the first half of 2021, export and import volumes increased by 13% [
4]. Due to the COVID-19 outbreak, there has been a global reduction in the accessibility of SC [
5]. Moreover, COVID-19 has a direct influence on supply and demand both globally and locally [
6]. All SCs have seen adjustments due to the COVID-19 outbreak due to several lockdown procedures and movement limitations throughout Latin America [
7]. Moreover, Qingbin, Liu [
8] revealed that COVID-19 had reduced prices, increased difficulties in transferring food from one supply chain segment to another, and caused higher production costs and labor shortages. Al-Hyari [
9] observed that due to decreased demand, logistical issues, and transportation issues, the COVID-19 epidemic disrupted Jordan’s SMS manufacturing industry, which saw a 67% fall in sales. Likewise, as shown by research conducted by Min, Zhang [
10] after the COVID-19 epidemic in Wuhan, food SC was impacted by the lockout and transfer restriction measures; as a result, the enterprise lost 80% of its revenue. Additionally, the COVID-19 outbreak’s lockdown and quarantine measures made it impossible to access markets, products, and supplies; more specifically, employees of the organization suffered mentally, financially, and socially. For this purpose, Ref. [
11] emphasizes SC managers’ challenges when attempting to operationalize the concepts of managing risks and flexibility in the SC and invites investigators to conduct an empirical study to evaluate how supply chain administrators handle COVID-19 concerns. Similarly, others draw attention to the need to research SC resilience and sustainability [
12,
13,
14,
15,
16].
Most previous studies on SCs in the COVID-19 era focused on the issues and obstacles [
17,
18,
19]. However, no study has been carried out to establish and confirm the mediation roles of management innovation, information processing competence, business model innovation, and knowledge management capability between the COVID-19 outbreak and the SSCP. Similarly, Refs. [
20,
21] calls for an empirical study on management innovation, information processing capability, business model innovation, and knowledge management competence to clarify how organizations confronting COVID-19 could create new strategies and capacities to reduce the epidemic’s threats. Numerous studies have examined how COVID-19 is related to SSCP. For example, a study by [
17] investigated the use of SC risk management to lessen the effect of interruptions on SC durability and adaptability in the situation of the COVID-19 pandemic. Similarly, Ref. [
18] explored the connection between SSCP, COVID-19, and innovative approaches. Likewise, Ref. [
19] studied the influence of SC amalgamation on corporate performance in Indonesia’s manufacturing sector during the COVID-19 outbreak. Findings demonstrate that SC integration enhances creativity, SC adaptability, and toughness, resulting in enhanced business results. Therefore, new procedures must be created to increase a corporation’s sustainability, or existing ones must be reorganized [
14,
20]. In this case, organizations must balance the triple bottom line (TBL), long-term viability, and stakeholder requirements while achieving favorable economic results [
21,
22].
Rasti Borazjani Faghat, Khani [
22] states that innovation management in work environments offers benefits like increased productivity, people development, synergy, and long-term viability in supply chains. Yang, Xie [
23] shows that aligning information processing capacity with resources lowers SC risks, enhancing sustainability. Tuominen [
24] finds a strong positive correlation between channel collaboration and corporate value proposition in the grocery supply chain, with a contingency-specific profile. Another study [
25] demonstrated that collaborative knowledge management practices, including activities like knowledge development, preservation, availability, distribution, and implementation, significantly improve supply chain collaboration and enhance knowledge efficiency in the manufacturing sectors.
Subsequently, the present research will answer the following questions:
Q1. Does the COVID-19 outbreak have an impact on SSCP?
Q2. Does the COVID-19 outbreak impact management innovation, information processing capability, business model innovation, and knowledge management capability?
Q3. Do management innovation, information processing capability, business model innovation, and knowledge management capability mediate between the COVID-19 outbreak and SSCP?
The study purpose is to fill the abovementioned gap by theoretically proposing and empirically testing a conceptual model arguing that management innovation, information processing capability, business model innovation, and knowledge management capability mediate between COVID-19 and SSCP. For this purpose, several research hypotheses are developed based on the resource-based view (RBV), dynamic capabilities (DCs), and organizational information processing theories (OIP). RBV is a theoretical framework that offers a strategic response to the challenges of the unstable business environment resulting from globalization, high-tech advancements, and economic downturns [
26,
27]. Furthermore, RBV considers organizations as a combination of distinct resources and competences that form the basis of the organization’s strategy and are the main drivers of its productivity [
28]. DCs are the ability to effectively utilize, enhance, and adjust outside and inside skills to respond effectively to the challenges of a continuously changing environment provides [
29]. OIP theory offers a deeper knowledge of how organizations may effectively accomplish unforeseen interruptions in the supply chain [
30]. Based on RBV, dynamic capabilities, and OIP theories, companies can implement SCRM practices to effectively address and manage disruptions [
31]. Alraja, Imran [
32] emphasizes that SMEs have the potential to attain sustainable supply chain performance amid the difficulties presented by the COVID-19 pandemic by leveraging innovation, adopting the RBV model, and [
33] dynamic capabilities. Modgil, Gupta [
34] revealed that utilizing OIP to identify, assess, rearrange, and initiate sequential stages plays a pivotal role in ensuring SC resilience during COVID-19, viewed from the perspective of the organizational information processing theory. Based on RBV, refs. [
35,
36] revealed that the knowledge management capability and business model innovation could play important roles in SC throughout the COVID-19 outbreak.
3. Research Methodology
This study concentrated on Pakistani SC enterprises or SC sections of manufacturing corporations that were formally registered with Pakistan’s Securities and Exchange Commission. For more information, refer to
Table 1 for Demographic Information and Data Collection. We sent out questionnaires through web-based links in Facebook groups run by these companies for their company operation. Additionally, the survey was distributed to respondents via LinkedIn, WhatsApp, and emails. In the end, 270 total replies were submitted; 16 of those responses were not complete. Furthermore, a total of 254 questionnaires were deemed suitable for subsequent analysis.
The respondents answered the questionnaire items using a five-point Likert scale. It ranged from 1 (strongly disagree) to 5 (strongly agree). To accomplish these aims and objectives, five items represent the constructs concerning the novel coronavirus, and the scale employed in this study has been adopted from previous research conducted by [
105] Cronbach’s alpha standardization value (α = 0.836). We utilized a set of five items to measure the management innovation, sourced from [
20] with a meaningful value of α = 0.878. We assessed the information processing capability construct using five items from [
101] with a standardized Cronbach’s value (α = 0.778). We used five items of the business model innovation adopted from [
106] with an acceptable value of α = 0.788. Knowledge management capability five measurement scales were adopted from [
107]. Cronbach’s alpha has an applicable value calculated to be 0.804, indicating good reliability. Additionally, nine items measuring the construct of SSCP were adopted from previous studies conducted by [
108,
109]; a Cronbach’s alpha rating of 0.967 indicates a high level of internal coherence. An overview of the questionnaires is presented in
Appendix A.
In this study, we used SmartPLS (version 4) to perform variance-based structural equation modeling (PLS-SEM) [
110]. To answer our study’s questions, we employed partial least squares (PLS), a well-suited predictive method for analyzing complex models. This study utilized PLS-SEM with six constructs, following the approach [
111] suggested. Additionally, PLS-SEM provides more versatility by eliminating problems associated with inadmissibility and factor indeterminacy, as highlighted by [
112]. The PLS-SEM method is also useful for developing theories while working with complex and exploratory models [
113]. The data were additionally evaluated to ascertain its potential for experiencing common method bias. This study employed Harman’s one-factor test, a methodology employed in prior research endeavors [
114,
115], to investigate the outcomes of the un-rotated factor solutions. Additionally, this analysis aimed to ascertain the number of factors responsible for explaining the variability observed in the variables [
114].
Figure 1 indicates the proposed model.
5. Discussion
The COVID-19 outbreak has affected global supply chains. Innovative strategies and capabilities should be adopted to maintain SSCP. This research examines the connection between the novel coronavirus (COVID-19) and sustainable supply chain through management innovation, information processing capability, business model innovation, and knowledge management capability. An innovative theoretical structure is proposed with several hypotheses. The findings of this research are categorized into two types of hypotheses: (i) hypotheses related to direct relationships and (ii) hypotheses related to mediation effects. Three hypotheses have been presented with respect to the direct results (H1, H2a, H2b, H2c, H2d, and H3a, H3b, H3c, H3d). The study’s findings regarding H1 indicate a direct negative effect of the novel coronavirus (COVID-19) on SSCP, aligning with the results of a previous study [
37]. Likewise, the study’s findings (H2a, H2b, H2c, and H2d) conclude a positive connection between the novel coronavirus (COVID-19) and the implementation of information processing capability, management innovation, business model innovation, and knowledge management capability in the Pakistani context. Regarding management innovation, our study findings align with a previous investigation [
20]; regarding information processing capability, our study’s findings are corroborated by past research [
23]; regarding business model innovation, our study is supported by an earlier study [
59]; and regarding knowledge management capability, our study result is consistent with a previous study [
67]. Finally, H3a, H3b, H3c, and H3d represent that SSCP significantly positively influenced management innovation, information processing capability, business model innovation, and the knowledge management capability. Meanwhile, according to the experimental outcomes of this study, it was argued that the companies that deny management innovation, information processing capability, business model innovation, and knowledge management capability could not carry out their corporate operations during the novel coronavirus (COVID-19). Regarding the significance of management innovation, information processing capability, business model innovation, and knowledge capability, our findings align with a previous study. Regarding management innovation, Artsiomchyk and Zhivitskaya [
128] revealed that management innovation plays a significant part in SSCP; to increase operational effectiveness and service quality, SC innovations blend new logistical and advertising strategies with advances in knowledge and associated technology. Regarding information processing capability, Yang, Xie [
23] demonstrates that an appropriate connection between information processing demands and capabilities increases SC risk control abilities, enhancing supply chain resilience under COVID-19. As a result, the company must move swiftly to process information from upstream vendors, downstream consumers, and markets. Concerning business model innovation, Tuominen [
24] elaborated that channel collaboration and corporate value proposition have a substantial positive correlation in the grocery supply chain, and the connection has a contingency-specific profile. Regarding knowledge management capability, Hult, Ketchen [
82] found that supply chain management practices might improve inter-organizational connections by implementing knowledge for creativity and competitive advantage.
The findings of this study condensed the mediation outcomes into hypotheses (H4a, H4b, H4c, and H4d). Structural equation modeling (SEM) examined and validated the mediation effects of management innovation, information processing capability, business model innovation, and knowledge management capability. The findings revealed that these variables affect the link between the novel coronavirus (COVID-19) and sustainable supply chain performance, aligning with previous literature. Regarding management innovation, supply chain resilience is increased by innovation systems’ and supply chains’ flexibility’s capacity to respond to unforeseen shifts in consumer demand and production issues. Hence, supply chain integration boosts corporate success in COVID-19 through innovation, flexibility, and resilience [
71]. Orlando, Tortora [
87] highlights that among various supply chain innovations, inventory management innovation played a critical role in enabling firms to withstand supply chain disruptions. Regarding the information processing capability, he revealed that the company’s effective implementation of an Omni-channel strategy, which improves its SC flexibility, is attributed to its ability to continuously align its internal information processing capabilities with the evolving external demands caused by external circumstances. In addition, this capability has played a significant role in enabling the company to thrive despite the challenges posed by the COVID-19 outbreak. Münch and Hartmann [
96] highlights that business model innovation may be a practical approach to overcoming the pandemic and enhancing organizational resilience. Another study [
97] mentioned that due to the problems faced by the novel coronavirus (COVID-19), companies would quickly invent digital substitutes or business models and low-touched distribution techniques for their goods and services. So, these options have allowed businesses to creatively redesign their present products, build alternate digital goods and services, or rethink their distribution routes and approaches for transporting products and services. Orlando, Tortora [
87] examined the outcome of knowledge capability on the interruption of the global SC during the COVID-19 epidemic; the result indicated that knowledge is the key element in fostering resilience and protecting businesses from setbacks. Additionally, the outcome of an SC disruption can only be somewhat mitigated through knowledge.
5.1. Theoretical and Practical Implications
The purpose of this investigation is to add to the current literature on SSCP and address the request made by numerous scholars for further empirical research in this area [
20,
21]. This study also adds value by emphasizing the relevance of the RBV, dynamic capability view, and OIP theories concerning innovative strategies and capabilities. Therefore, by integrating the RBV, organizational processing theory, and dynamic capabilities, this investigation offers a comprehensive understanding of the interaction between these concepts and their assessment in the context of SSCP. According to [
129], RBV is the most frequently utilized theory to represent the sustainability problem in supply chain development. Therefore, the resource-based view (RBV) contends that the capability, capacity, and competitive advantage of a firm is anchored on its internal resources (physical, human, and organizational), which must be valuable, scarce, and irreplaceable [
28]. Dynamic capability is the ability to ‘integrate, build, and reconfigure internal and external competences to address rapidly changing environments’ [
29]. The dynamic capability increases these activities, particularly in turbulent times when changes are ubiquitous, by rapidly aggregating, renewing, and transforming resources into new competencies to capitalize on these changes [
130]. The information processing theory states that a company’s information processing needs should match its information processing capabilities [
47]. Therefore, a company’s capacity to process gains knowledge along with its capacity to deal with uncertainty [
31,
49]. By doing this, we contribute further insights into current research on the connection between the novel coronavirus (COVID-19) and SSCP [
31,
37].
The theoretical model proposed in this paper has the potential to be a useful tool for supply chain and logistics managers in effectively managing supply chain interruptions affected by the novel coronavirus (COVID-19). By implementing this model, managers can navigate the crisis, enhance profitability, and sustain operations during these challenging times. As a result, COVID-19 challenges society emotionally, emphasizing the need for successful supply chains. Therefore, we emphasize the importance of viable SC and suggest new strategies and capabilities for economic recovery. The results of our research indicate that creating partnerships between employers and workers could provide a wide range of possibilities for logistics, supply chains, and manufacturing companies to enhance their effectiveness and output. To encourage the implementation of intelligent systems and distributed ledgers in the logistics and SC sectors, the government could give financial incentives like tax credits and interest-free financing. Mere digitalization of systems is insufficient; governments and organizations should also organize training programs to equip their workforce with the necessary technological skills to seamlessly operate digital systems.
5.2. Limitations and Future Research Directions
This research has some limitations that may make the topic more appealing and encourage further publication. Firstly, the study was based on cross-sectional data. Therefore, for future investigations, it is recommended to utilize longitudinal data. Secondly, the study’s data were gathered from Pakistan’s SC and manufacturing business. Therefore, further studies should be undertaken across various countries and sectors to broaden the scope of research. Thirdly, the study only focused on managers’ perspectives, neglecting other stakeholders’ views. Ultimately, the research solely relied on quantitative methods, disregarding the potential for qualitative methods to offer a more comprehensive and nuanced comprehension of the subject matter.