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Chain-master firms’ digitalization and supply chain resilience: Evidence from China

Author

Listed:
  • Wang, Yiru
  • Liu, Yang
  • Xie, Yanxiang
  • Yasheng, Zulimire

Abstract

Supply chains face rising disruption risk amid geopolitical tensions and trade frictions, yet evidence on how lead firms' digitalization shapes supply chain resilience remains limited. Using supply-chain data among China's A-share listed firms from 2007 to 2023, we identify chain-master firms as central coordinators by social network analysis and find that chain-master firms' digitalization significantly strengthens supply chain resilience, with the marginal effect increasing once digitalization crosses a critical threshold. Mechanism analysis suggests demonstration effects, resource-sharing effects, and risk-sharing effects are three plausible channels. The effect is more pronounced when linked firms are geographically closer, digitally aligned, or in similar industries, and when chain-master firms exhibit higher technological barriers or greater network control. Overall, this study not only enriches the literature on chain-master firms' digitalization but also offers practical guidance for staging digital upgrades to build supply chain resilience.

Suggested Citation

  • Wang, Yiru & Liu, Yang & Xie, Yanxiang & Yasheng, Zulimire, 2026. "Chain-master firms’ digitalization and supply chain resilience: Evidence from China," Economic Modelling, Elsevier, vol. 161(C).
  • Handle: RePEc:eee:ecmode:v:161:y:2026:i:c:s0264999326001525
    DOI: 10.1016/j.econmod.2026.107623
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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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