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Supply chain digitalization and corporate innovation: evidence from China

Author

Listed:
  • Huang, Huaxin
  • Wang, Jun
  • Liao, Yinchao
  • Yu, Juntai
  • Tian, Jiatai

Abstract

We investigate the effect of supply chain digitalization on corporate innovation using the difference-in-differences method. The empirical results reveal that supply chain digitalization significantly enhances corporate innovation, and this conclusion remains robust across various sensitivity analyses. Mechanism tests show that the policy promotes corporate innovation through alleviating financing constraints, improving operating efficiency, and reducing information asymmetry. Further analysis indicates that while supply chain digitalization improves the quality and efficiency of corporate innovation, its effect on the innovation breadth is not significant. The economic consequence demonstrates that the policy significantly increases total factor productivity by enhancing corporate innovation. Moreover, we find that the positive effect of supply chain digitalization on corporate innovation is mainly observed in mature enterprises, large-scale firms, and high-technological companies. Our study provides new insights into the impact of digital transformation within the supply chain on the real economy.

Suggested Citation

  • Huang, Huaxin & Wang, Jun & Liao, Yinchao & Yu, Juntai & Tian, Jiatai, 2026. "Supply chain digitalization and corporate innovation: evidence from China," Economic Modelling, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:ecmode:v:158:y:2026:i:c:s0264999326000775
    DOI: 10.1016/j.econmod.2026.107548
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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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