Digital Transformation, Supply Chain Integration and Supply Chain Performance: Evidence From Chinese Manufacturing Listed Firms

Abstract

With the rapid development of digital technologies, digital transformation is becoming a critical way for enterprises to improve their performance. However, the current literatures lack sufficient research on whether and how the usage of digital technology improve supply chain performance. Based-on resource-based view and information processing theory, this study examines the impact of digital transformation on supply chain performance, as well as the mediating role of supply chain integration. The proposed hypotheses are tested empirically using data collected from Chinese A-share listed manufacturing firms for the years 2015 to 2022. The results show that digital transformation has a significant impact on supply chain performance, in which supply chain integration plays a partial mediating role. After a series of endogeneity and robustness tests, the results remain valid. Further analysis also reveals that the impact of digital transformation on supply chain performance is more significant for small and medium-sized enterprises (SMEs) than for large enterprises. In addition, firm size has a significant heterogeneous effect on this relationship, which implies that digital transformation is better able to improve SMEs’ supply chain performance. The findings provide guidance for enhancing supply chain performance through digital transformation and supply chain integration.