Managing supply chain resilience under complexity: exploring the role of industrial metaverse technology in the manufacturing sector

Purpose – In today's dynamic environment, Industrial Metaverse Technology (IMT) promises to enhance supply chain resilience (SCR) by optimizing operations and building adaptability. Also, it can help generate economic value by enabling firms to sustain performance under disruptions, minimize their costs engaged for recovery and reconfigure the supply chain (SC) capabilities to achieve long-term continuity. In this context, this study explores the potential of IMT in maintaining the adaptive, restorative and absorptive core capacities of the SCR while considering SC complexity. Design/methodology/approach – It introduces a three-dimensional framework for SCR while considering the dynamic capabilities view (DCV) and complex adaptive systems (CAS) theories. The framework is empirically validated using structural equation modeling (SEM) to test the developed hypotheses and evaluate the power of IMT in ensuring SCR under SC complexity based on data from experts. Findings – The findings reveal that the IMT has the potential to design effective absorptive and adaptive capacities to build robust SCs, capable of resisting negative impacts associated with extreme disruptions. Furthermore, the study demonstrates the needed digital-dynamic capabilities (DDC) of IMT that can be implemented to anticipate potential disruptions and adjust the firm's core capacities to resist, respond and recover from similar events. Originality/value – Grounded on the CAS and DCV theories, this study challenges the static view that considers SCR as a reactive capability only by showing that digital capabilities offering visibility, proactiveness and adaptability are important for dealing with disruptions and ensuring a desired level of resilience through the reconfiguration of the SC capabilities. Furthermore, it argues that understanding the facets of SC complexity would help firms identify their critical issues and vulnerabilities, allowing for an effective design of digital transformation through the IMT to achieve resilience and higher economic value for industrial firms.