How does digital economy affect the industry chain resilience in China?

Abstract

Abstract Based on the annual reports and input–output table data of Chinese listed companies from 2008 to 2020, this paper measures the level of digital transformation of enterprises by using the keyword word frequency index in the annual reports of listed companies and reveals the impact and mechanism of digital transformation of enterprises on industry chain elasticity by using a panel data model. Additionally, it provides a theoretical explanation of how the digital revolution of businesses affects industrial chain resilience. The outcome shows that improving industrial chain resilience can be facilitated by businesses undergoing a digital transition. Moreover, factor mismatch can be reduced by corporate digital transformation, which enhances industrial chain resilience. Furthermore, the beneficial effects of the digital revolution on industrial chain resilience will be enhanced by politically linked businesses. The main conclusions contribute to our understanding of the relationship between industrial chain resilience and enterprises’ digital transformation. It also offers crucial policy recommendations and guidance that the government can use to create sensible digital economy policies and successfully direct businesses’ digital transformations in order to strengthen the industrial chain resilience.