IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v70y2024ics1544612324012856.html
   My bibliography  Save this article

Digital transformation, supply chain finance, and enterprise innovation

Author

Listed:
  • Lei, Wei
  • Tang, Kaitao
  • Shao, Jingfeng
  • Ran, Feng

Abstract

This study uses Chinese A-share listed companies in Shanghai and Shenzhen from 2007 to 2022 as samples to explore the joint impact of digital transformation (DT) and supply chain finance (SCF) on corporate innovation. Results reveal that DT can significantly improve enterprise innovation while promoting the improvement of innovation quantity and quality, with research and development investment acting as a mediating factor. This study's analysis of the impact of SCF reveals that SCF can also promote enterprise innovation by improving synergies and serving as a substitute for DT.

Suggested Citation

  • Lei, Wei & Tang, Kaitao & Shao, Jingfeng & Ran, Feng, 2024. "Digital transformation, supply chain finance, and enterprise innovation," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324012856
    DOI: 10.1016/j.frl.2024.106256
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324012856
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106256?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Xiang & Zhou, Han, 2022. "The effect of market competition on corporate cash holdings: An analysis of corporate innovation and financial constraint," International Review of Financial Analysis, Elsevier, vol. 82(C).
    2. Li, Junrui & Liu, Lei, 2023. "Common institutional ownership and corporate innovation: Synergy of interests or grabs of interests," Finance Research Letters, Elsevier, vol. 52(C).
    3. Yujuan Zhang & Lu Zhang, 2022. "Innovation Input on Enterprise Value: Based on the Moderating Effect of Ownership Structure," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(4), pages 1078-1088, March.
    4. Sin-Huei Ng & Yunze Yang & Chin-Chong Lee & Chui-Zi Ong, 2023. "Nexus of Financing Constraints and Supply Chain Finance: Evidence from Listed SMEs in China," IJFS, MDPI, vol. 11(3), pages 1-16, August.
    5. Boeing, Philipp, 2016. "The allocation and effectiveness of China’s R&D subsidies - Evidence from listed firms," Research Policy, Elsevier, vol. 45(9), pages 1774-1789.
    6. Boasiako, Kwabena Antwi & Adasi Manu, Sylvester & Antwi-Darko, Nana Yaw, 2022. "Does financing influence the sensitivity of cash and investment to asset tangibility?," International Review of Financial Analysis, Elsevier, vol. 80(C).
    7. Guariglia, Alessandra & Liu, Pei, 2014. "To what extent do financing constraints affect Chinese firms' innovation activities?," International Review of Financial Analysis, Elsevier, vol. 36(C), pages 223-240.
    8. Hu, Jiangfeng & Pan, Xinxin & Huang, Qinghua, 2020. "Quantity or quality? The impacts of environmental regulation on firms’ innovation–Quasi-natural experiment based on China's carbon emissions trading pilot," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    9. Liu, Shasha & Zhao, Huixian & Kong, Gaowen, 2023. "Enterprise digital transformation, breadth of ownership and stock price volatility," International Review of Financial Analysis, Elsevier, vol. 89(C).
    10. Lindsey, Kevin & Mauck, Nathan & Olsen, Ben, 2021. "The coming wave of small business succession and the role of stakeholder synergy theory," Global Finance Journal, Elsevier, vol. 48(C).
    11. Aiping Wang & Rui Han, 2024. "Can digital transformation prohibit corporate fraud? Empirical evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 31(16), pages 1505-1512, September.
    12. He, Jie (Jack) & Tian, Xuan, 2013. "The dark side of analyst coverage: The case of innovation," Journal of Financial Economics, Elsevier, vol. 109(3), pages 856-878.
    13. Xing, Chao & Zhang, Yuming & Tripe, David, 2021. "Green credit policy and corporate access to bank loans in China: The role of environmental disclosure and green innovation," International Review of Financial Analysis, Elsevier, vol. 77(C).
    14. Li, Min & Liu, Na & Kou, Aiju & Chen, Wenchuan, 2023. "Customer concentration and digital transformation," International Review of Financial Analysis, Elsevier, vol. 89(C).
    15. Wen, Huwei & Zhong, Qiming & Lee, Chien-Chiang, 2022. "Digitalization, competition strategy and corporate innovation: Evidence from Chinese manufacturing listed companies," International Review of Financial Analysis, Elsevier, vol. 82(C).
    16. Tian, Guangning & Li, Bo & Cheng, Yue, 2022. "Does digital transformation matter for corporate risk-taking?," Finance Research Letters, Elsevier, vol. 49(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cheng, Hang & Ruan, Ping & Wang, Peng, 2024. "The impact of surging computing power on enterprise digital transformation–Based on quasi-natural experiments set up by the National Supercomputing Center," Finance Research Letters, Elsevier, vol. 65(C).
    2. Shentu, Lirong & Liu, Wanzhou & Liu, Yuanyuan, 2024. "Be alert of the hyped words around fancy tech! Strategic digitalization disclosure under earnings pressure," Finance Research Letters, Elsevier, vol. 67(PA).
    3. He, Bingquan & Gan, Lu, 2025. "Exploring the synergistic effect of CEO power and technological expertise in driving corporate digital transformation," International Review of Financial Analysis, Elsevier, vol. 98(C).
    4. Chen, Fuyong & Zeng, Xiao & Guo, Xiang, 2024. "Green finance, climate change, and green innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).
    5. Huang, Hongyun & Mbanyele, William & Wang, Fengrong & Song, Malin & Wang, Yuzhang, 2022. "Climbing the quality ladder of green innovation: Does green finance matter?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    6. Wang, Pengmian & Zhao, Tao, 2024. "Impact of population aging on corporate digital transformation strategies: An empirical investigation based on population census data from various provinces in China," Finance Research Letters, Elsevier, vol. 67(PA).
    7. Jiang, Wenjuan & Wang, Xin, 2024. "Enterprise digital transformation empowers supply Chain stability," Finance Research Letters, Elsevier, vol. 66(C).
    8. Li, Na & Wu, Di, 2024. "Cross-shareholding, financing constraints and firm innovation efficiency," Finance Research Letters, Elsevier, vol. 62(PA).
    9. Wang, Xiaofen & Yu, Jing & Di, Jing, 2025. "Effects of digital economic antitrust policy on enhancing corporate innovation performance," Finance Research Letters, Elsevier, vol. 71(C).
    10. Jiang, Yan & Wang, Jiaxin & Huang, Yibo, 2024. "Does religious atmosphere affect enterprise digital transformation? Evidence from China," Research in International Business and Finance, Elsevier, vol. 70(PB).
    11. Zhang, Huaqing & Zhang, Xiangjian & Tan, Haoyu & Tu, Yongqian, 2024. "Government subsidies, market competition and firms' technological innovation efficiency," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    12. Zhang, Xinyu & Liu, Yixuan & Yu, Shaoze & Lin, Ouwen & Meng, Lu, 2025. "Impact of environmental protection tax on enterprise digital transformation: Evidence from Chinese listed firms," International Review of Economics & Finance, Elsevier, vol. 97(C).
    13. Wei, Feiqiong & Xie, Baiwei & Chen, Mingyan, 2025. "Digital financial inclusion, e-commerce development and entrepreneurial activity," International Review of Financial Analysis, Elsevier, vol. 97(C).
    14. Li, Pengcheng & Guo, Xiaochuan & Wang, Fengzheng & Zhang, Qifeng, 2025. "Digital transformation and corporate innovation boundaries: Role of supply chain concentration and transparency," International Review of Financial Analysis, Elsevier, vol. 98(C).
    15. Han, Yue & Yang, Jie & Ying, Limeng & Niu, Yanfang, 2024. "The impact of corporate digital transformation on labor employment," Finance Research Letters, Elsevier, vol. 60(C).
    16. Wang, Zhen & Chu, Erming & Hao, Yukai, 2024. "Towards sustainable development: How does ESG performance promotes corporate green transformation," International Review of Financial Analysis, Elsevier, vol. 91(C).
    17. Yao, Dong & Chen, Liang & Zhong, Wanyin, 2025. "Does domestic market integration promote an increase in the export value of manufacturing?," Finance Research Letters, Elsevier, vol. 72(C).
    18. Yang, Jie & Ying, Limeng & Xu, Xiaofang, 2024. "Digital transformation and accounting information comparability," Finance Research Letters, Elsevier, vol. 61(C).
    19. Pu, Xiaohong & Zeng, Ming & Zhang, Weike, 2023. "Corporate sustainable development driven by high-quality innovation: Does fiscal decentralization really matter?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 273-289.
    20. Dou, Bin & Guo, SongLin & Chang, XiaoChen & Wang, Yong, 2023. "Corporate digital transformation and labor structure upgrading," International Review of Financial Analysis, Elsevier, vol. 90(C).

    More about this item

    Keywords

    Digital transformation; Supply chain finance; Enterprise innovation; R&D investment; Synergy effects;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324012856. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.