**4. Research Results**

The average scores (M) of the respondents' agreements with statements that critical indicators and the digitalization process significantly influence the sustainability and functionality of the FSC in the segment of wholesale and retail activities are presented in Table 3. In addition to the average rank, for each of the tested indicators, the most important indicators of descriptive statistics are listed (Min., Max., SE, and SD).


**Table 3.** Descriptive statistics.

Source: Author's calculation.

The above table shows that the respondents agree that coordination and information transfer (M = 4.71) is the most important indicator that influences FSC in the segment of wholesale and retail activities. In other words, respondents believe that the lack of coordination and untimely transfer of information among FSC participants has the greatest negative impact on its sustainability and flexibility. The degree of agreement among respondents with this statement is significant and amounts to SD = 0.8604. Such a result is expected because inadequate exchange of information within the FSC results in an untimely and weak reaction to the demands and needs of the market [1,2,4,5,7,8,11]. Second place is shared by external elements (M = 4.25) and economic performance (M = 4.24). It is particularly interesting to observe that the respondents in their answers are most in agreement about the negative impact that economic performance can have on FSC (SD = 0.8014). Having in mind the volatility and unpredictability of the global market and its impact on supply chains, these are expected responses. Out of the critical indicators, the control of raw material, food, and waste flows (M = 4.17), chemical and microbial contamination (M = 3.87), and food loss and/ or waste (M = 3.74) follow. Transaction costs (M = 3.17) are in last place in importance for the functionality of FSC, which is possibly attributed to the fact that FSC managers consider that they take more care and more efficiently monitor the expenses that appear on the journey of the product from the farmer to the final consumer. It is interesting to note that the process of digitalization and its impact on the entire FSC was assessed with a high average score of 4.20, with high agreement among respondents on this statement (SD = 0.8390). This confirms the awareness among FSC managers of the necessity of introducing modern technologies in FSC business operations.

The SEM method will be used to precisely test the impact of critical indicators on the sustainability and functionality of FSC in the segment of wholesale and retail activities (hypothesis group H1(a)–H1(g)). Before actual testing, it was necessary to determine the degree of correlation between the analyzed indicators and the functionality of the FSC. For this purpose, multiple regression analysis was applied, i.e., the Enter method, which combines all independent variables (critical indicators) to predict the dependent variable (sustainability and functionality of FSC). The obtained regression model is statistically significant (F(200;6) = 6.97, *p* < 0.01), which means that the set of critical indicators is statistically significant in predicting the sustainability and functionality of FSC. The resulting

model describes 66.3% of the criterion variance. The contribution of each indicator is presented in Table 4.

**Table 4.** Contribution of critical indicators.


Note: \*\* Correlation is significant at the 1%level; \* correlation is significant at the 5% level. Source: Author's calculation.

Testing the impact of critical indicators on the sustainability and functionality of the FSC was implemented using the SEM method, or the path analysis method. The essence of the SEM method is that the influence of each critical indicator on the sustainability and functioning of the FSC can be defined based on the established paths or directions of influence. The obtained model is statistically significant (NFI = 0.984; RFI = 0.926; IFI = 0.957; TLI = 0.950; CFI = 0.950; RMSEA = 0.048, CMIN/DF = 1.495). The results of testing the first group of research hypotheses H1(a)–H1(g) and the display of statistically significant mutual influences between the analyzed indicators are presented in Table 5.

**Table 5.** Path analysis.


Source: Author's calculation.

The obtained results show that critical indicators such as coordination and transfer of information, economic performance, external elements, chemical and microbial contamination, and control of raw material, food, and waste flows affect in a statistically significant way the sustainability and functionality of the FSC in the segment of wholesale and retail activities. That confirms research hypotheses H1(a), H1(c), H1I, H1(I) i H1(g), i.e., considering that these are critical indicators, any increase in the intensity of the given indicators and failures in control, information flows, and security and the like, has a direct negative impact on the flexibility of the FSC. In the case of the remaining two indicators, no statistically significant influence can be read, and we conclude that hypotheses H1(b) and H1(d) are not accepted. Based on the conducted testing, the conclusion is that the first research hypothesis H<sup>1</sup> is partially accepted and that critical indicators in most cases have a statistically significant effect on the sustainability and functionality of FSC in the segment of wholesale and retail activities. Figure 2 (structural model) presents the influence paths of critical indicators on the sustainability and functionality of FSC. *Sustainability* **2023**, *15*, x FOR PEER REVIEW 12 of 19

**Figure 2.** Structural model. **Figure 2.** Structural model.

In the second part of the questionnaire, respondents assessed the impact of digitalization; that is, a ranking was made to establish if the application of modern information technologies, location-based technologies, and sensor and identification technologies (BT, IoT, DLT, WSN, TTI, Barcode, RFID, RS, GPS, RTL, etc.) minimizes the negative impacts of the critical indicators defined in the first segment of the research. The average scores (M) of respondents' agreements with the statement that the digitalization process significantly affects critical indicators are presented in Table 6. In addition to the average rank, the most important indicators of descriptive statistics (Min., Max., SE, and SD) are listed. In the second part of the questionnaire, respondents assessed the impact of digitalization; that is, a ranking was made to establish if the application of modern information technologies, location-based technologies, and sensor and identification technologies (BT, IoT, DLT, WSN, TTI, Barcode, RFID, RS, GPS, RTL, etc.) minimizes the negative impacts of the critical indicators defined in the first segment of the research. The average scores (M) of respondents' agreements with the statement that the digitalization process significantly affects critical indicators are presented in Table 6. In addition to the average rank, the most important indicators of descriptive statistics (Min., Max., SE, and SD) are listed.

**Table 6.** Descriptive statistics for the impact of the digitization process on critical indicators. **Table 6.** Descriptive statistics for the impact of the digitization process on critical indicators.

that the digitalization process most influences and shapes the coordination and transfer of information in the FSC (M = 4.84) and the control of raw material, food, and waste flows (M = 4.36). Together, these answers show the highest degrees of mutual agreement between the respondents' views (SD = 0.8057; SD = 0.8110). These answers are expected, bearing in mind that improving the flow of information, products, and services through the FSC is impossible without modern technologies [1,11–13,28]. Slightly less importance was attributed to the impact of digitalization on food loss and/or waste (M = 4.22), transaction costs (M = 4.14), and chemical and microbial contamination (M = 4.02). With all of these indicators, it is noticeable that with an increase in the degree of control and better monitoring of information, their negative effects are eliminated. The least importance was given to the impact of digitalization on economic performance (M = 3.45) and external elements (M = 3.21). The respondents' opinion is that these last two indicators are the most


5 SD 0.8057 0.9914 1.0541 1.2112 0.9758 0.8824 0.8110 Source: Author's calculation. Source: Author's calculation.

From the given tabular representation, it is noticeable that the respondents believe that the digitalization process most influences and shapes the coordination and transfer of information in the FSC (M = 4.84) and the control of raw material, food, and waste flows (M = 4.36). Together, these answers show the highest degrees of mutual agreement between the respondents' views (SD = 0.8057; SD = 0.8110). These answers are expected, bearing in mind that improving the flow of information, products, and services through the FSC is impossible without modern technologies [1,11–13,28]. Slightly less importance was attributed to the impact of digitalization on food loss and/or waste (M = 4.22), transaction costs (M = 4.14), and chemical and microbial contamination (M = 4.02). With all of these indicators, it is noticeable that with an increase in the degree of control and better monitoring of information, their negative effects are eliminated. The least importance was given to the impact of digitalization on economic performance (M = 3.45) and external elements (M = 3.21). The respondents' opinion is that these last two indicators are the most dependent on external factors that come from outside the FSC, and that, therefore, digitalization cannot have a direct impact on them.

For testing the second group of research hypotheses H2(a)–H2(g), the SEM method was also be used; that is, the impact path analysis. Previously, using the Enter method, it was determined that the obtained regression model is statistically significant (F(200;1) = 6339, *p* < 0.01), which means that the digitalization process significantly predicts the influence of each of the critical indicators. The resulting model describes 71.3% of the criterion variance. Using the SEM method, we defined the direction of the influence of the digitalization process on each of the critical indicators. The obtained model is statistically significant (NFI = 0.977, RFI = 0.962, IFI = 0.945, TLI = 0.971, CFI = 0.977, RMSEA = 0.028, and CMIN/DF = 1.266). The results from testing the second group of research hypotheses H2(a)–H2(g) are presented in Table 5.

The results show that implementing modern technological solutions in the FSC significantly affects the coordination and transfer of information, loss and/or waste of food, transaction costs, food security and safety, and raw materials, food, and waste flows in the FSC in the segment of wholesale and retail activities. These results confirm the research hypotheses H2(a), H2(b), H2(d), H2(f) i H2(g); that is, the growth of the intensity of the digitalization process is directly reflected in the minimization of the negative impacts of the mentioned critical indicators on the sustainability and functioning of the FSC. In the case of the remaining two indicators, no statistically significant influence can be read, and we conclude that hypotheses **H1(c)** i **H1(e)** are not accepted. In other words, FSC digitalization has no impact on economic performance (inflation rate and energy prices) or external effects (global instability, crises, etc.).

Based on the conducted testing, the conclusion is that the second research hypothesis H<sup>2</sup> was partially accepted, and that the implementation of modern technologies in most cases statistically significantly affects and minimizes the critical indicators that appear in the business operations of FSC in the segment of wholesale and retail activities. Figure 3 (structural model) presents the paths of influence of the digitalization process on critical indicators as well as the mutually statistically significant influence between the critical indicators.

In the last segment of the research, the respondents made a final judgment on whether the digitalization process affects the sustainability and functionality of the FSC in the segment of wholesale and retail activities. The average ranking of respondents' answers and the most important indicators of descriptive statistics on this issue are presented in Table 7.

The average rank of M = 4.20 shows that the respondents believe that the implementation of modern technologies through the impact on critical indicators directly contributes to greater flexibility and transparency in the FSC, that is, its sustainability and functionality. It is noticeable that the respondents are quite unanimous on this statement (SD = 0.839). This result gains additional importance because most respondents from the sample have already implemented various modern information and technological solutions in their business processes; thus, their answers are based on real data. As in the case of the previous research hypotheses, when testing **H<sup>3</sup>** by employing the SEM method, the direction of the influence of

the digitalization process on the sustainability and functionality of the FSC was defined. The obtained model is statistically significant (NFI = 0.965, RFI = 0.974, IFI = 0.961, TLI = 0.975, CFI = 0.966, RMSEA = 0.044, and CMIN/DF = 1.342). The results of testing the third research hypothesis **H<sup>3</sup>** are presented in Table 8. H<sup>2</sup> was partially accepted, and that the implementation of modern technologies in most cases statistically significantly affects and minimizes the critical indicators that appear in the business operations of FSC in the segment of wholesale and retail activities. Figure 3 (structural model) presents the paths of influence of the digitalization process on critical indicators as well as the mutually statistically significant influence between the critical indicators. *Sustainability* **2023**, *15*, x FOR PEER REVIEW 14 of 19

*Sustainability* **2023**, *15*, x FOR PEER REVIEW 13 of 19

talization cannot have a direct impact on them.

presented in Table 5.

effects (global instability, crises, etc.).

dependent on external factors that come from outside the FSC, and that, therefore, digi-

For testing the second group of research hypotheses H2(a)–H2(g), the SEM method was also be used; that is, the impact path analysis. Previously, using the Enter method, it was determined that the obtained regression model is statistically significant (F(200;1) = 6339, *p* < 0.01), which means that the digitalization process significantly predicts the influence of each of the critical indicators. The resulting model describes 71.3% of the criterion variance. Using the SEM method, we defined the direction of the influence of the digitalization process on each of the critical indicators. The obtained model is statistically significant (NFI = 0.977, RFI = 0.962, IFI = 0.945, TLI = 0.971, CFI = 0.977, RMSEA = 0.028, and CMIN/DF = 1.266). The results from testing the second group of research hypotheses H2(a)–H2(g**)** are

The results show that implementing modern technological solutions in the FSC significantly affects the coordination and transfer of information, loss and/or waste of food, transaction costs, food security and safety, and raw materials, food, and waste flows in the FSC in the segment of wholesale and retail activities. These results confirm the research hypotheses H2(a), H2(b), H2(d), H2(f) i H2(g**)**; that is, the growth of the intensity of the digitalization process is directly reflected in the minimization of the negative impacts of the mentioned critical indicators on the sustainability and functioning of the FSC. In the case of the remaining two indicators, no statistically significant influence can be read, and we conclude that hypotheses **H1(c)** i **H1(e)** are not accepted. In other words, FSC digitalization has no impact on economic performance (inflation rate and energy prices) or external

Based on the conducted testing, the conclusion is that the second research hypothesis

**Figure 3.** Structural model. **Figure 3.** Structural model. = 0.839). This result gains additional importance because most respondents from the sam-

In the last segment of the research, the respondents made a final judgment on **Table 7.** Descriptive statistics. in their business processes; thus, their answers are based on real data. As in the case of the


Source: Author's calculation. **Table 8.** Path analysis.

**Table 8.** Path analysis. **Ord.** 


**Path Path Coeffi-**

*t*

ple have already implemented various modern information and technological solutions

Source: Author's calculation.

The result shows that the digitization of FSC, that is, the implementation of information technologies, location-based technologies, and sensor and identification technologies (BT, IoT, DLT, WSN, TTI, Barcode, RFID, RS, GPS, RTL, etc.), affects the sustainability and functionality of FSC in the segment of wholesale and retail activities. That confirms the third research hypothesis **H3**, that is, the growth of the intensity of the digitalization process and the greater inclusion of modern technologies in the business processes of the FSC directly reflects on the sustainability, transparency, and functioning of the FSC. The direction of influence is quite clear and simple (Figure 4). The result shows that the digitization of FSC, that is, the implementation of information technologies, location-based technologies, and sensor and identification technologies (BT, IoT, DLT, WSN, TTI, Barcode, RFID, RS, GPS, RTL, etc.), affects the sustainability and functionality of FSC in the segment of wholesale and retail activities. That confirms the third research hypothesis **H3**, that is, the growth of the intensity of the digitalization process and the greater inclusion of modern technologies in the business processes of the FSC directly reflects on the sustainability, transparency, and functioning of the FSC. The direction of influence is quite clear and simple (Figure 4).

The results of the conducted research show that various indicators, called critical indicators in the literature, significantly influence the sustainability and functionality of FSC

in the segment of wholesale and retail activities. The research confirmed the results of **Figure 4.** Structural model.

**5. Discussion**

**Figure 4.** Structural model.
