The impact of digital transformation of chain-leading enterprises on supply chain efficiency

Zhang, Xia; Liang, Ruifeng; Chen, Yun

Abstract

Purpose – This paper takes the digital transformation of chain-leading enterprises, i.e. leading enterprises in the supply chain, as the entry point, establishes the screening criteria for these enterprises using three data indicators, and explores the impact of their digital transformation on supply chain efficiency. This analysis is based on text data from Chinese listed companies between 2010 to 2022.

Design/methodology/approach – Based on the theoretical foundation of the research, this paper proposes a theoretical hypothesis model and establishes a benchmark regression equation to study the impact of digital transformation on supply chain efficiency. The study uses panel data from 465 Chinese enterprises.

Findings – The results show that the digital transformation of leading enterprises in the supply chain significantly improves supply chain efficiency. In this paper, an instrumental variable method is used to mitigate endogeneity and a series of robustness tests to confirm the validity of the findings. The impact path analysis reveals that the chain-leading enterprises can enhance efficiency by reducing financing cost, increasing operational efficiency and lowering the concentration level of the supply chain. Furthermore, the heterogeneity analysis demonstrates that the digital transformation of state-owned leading enterprises in the supply chain and low-tech sector leaders have a more prominent effect on supply chain efficiency.

Originality/value – First, this paper provides empirical evidence of the impact of digital transformation on the supply chain efficiency of chain-leading enterprises. Secondly, it enriches existing research on chain leaders, particularly regarding their digital transformation and offers new insights into the quantitative screening of such enterprises.

• Journal Article Type: Article
• Acceptance Date: Mar 14, 2025
• Online Publication Date: Apr 11, 2025
• Deposit Date: Apr 14, 2025
• Publicly Available Date: Apr 15, 2025
• Journal: Supply Chain Management: An International Journal
• Print ISSN: 1359-8546
• Electronic ISSN: 1758-6852
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• ISBN: 1359-8546
• DOI: https://doi.org/10.1108/scm-11-2024-0772
• Keywords: chain-leading enterprises; digital transformation; supply chain efficiency; financing cost; operational efficiency; supply chain concentration