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Enterprise digital transformation and employment: Spillover effect within supply chains

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  • Lan, Sen
  • Cui, Maosheng

Abstract

This study investigates the spillover effect of enterprise digital transformation on employment within supply chains using Chinese A-share listed enterprises spanning from 2009 to 2022. The results suggest a positive impact of customers’ digital transformation on suppliers’ employment. We identify three potential mechanisms underlying it: customers’ digital transformation drives the digital transformation process, alleviates financial constraints, and enhances sales of suppliers. Heterogeneity analysis reveals that this effect is particularly pronounced among state-owned suppliers and within the manufacturing industries. Overall, our study contributes to the research field concerning the economic impacts of digital transformation in enterprises and its spillover effects.

Suggested Citation

  • Lan, Sen & Cui, Maosheng, 2024. "Enterprise digital transformation and employment: Spillover effect within supply chains," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009589
    DOI: 10.1016/j.frl.2024.105928
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    Cited by:

    1. Lu, Danning & Hui, Eddie Chi Man & Shen, Jianfu & Shi, Jianxun, 2024. "Digital industry agglomeration and urban innovation: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1998-2025.
    2. Qi, Qiuyue & Lu, Ping & Zhao, Xiangru, 2025. "Corporate carbon regulation, green innovation and supply chain spillover," Innovation and Green Development, Elsevier, vol. 4(5).
    3. Li, Zhe & Liu, Minggang & Wang, Lu, 2025. "Artificial intelligence development and rural labor employment quality," International Review of Economics & Finance, Elsevier, vol. 102(C).
    4. Ma, Jia & Xie, Tingting, 2025. "Customer artificial intelligence, supply chain spillover effects, and supplier capacity utilization," International Review of Economics & Finance, Elsevier, vol. 103(C).
    5. Deng, Meizhen & Gao, Jiapeng & Yuan, Gecheng & Ke, Linyu & Yao, Junchen, 2025. "Data-driven hiring in firms: Evidence from the launch of Chinese public data platforms," Finance Research Letters, Elsevier, vol. 86(PA).

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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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