IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v281y2025ics092552732500009x.html
   My bibliography  Save this article

Analyzing the impact of government R&D subsidy and digital transformation on supply chain risk dynamics management and firm performance in the China's chip industry

Author

Listed:
  • Guo, Hailan
  • Shen, Zhen
  • Chen, Yanting
  • Dong, Ming

Abstract

This study explores the interactions among digital transformation, government R&D subsidy, and supply chain risk dynamics management within the chips industry, spanning from 2013 to 2022. It scrutinizes data derived from annual reports and the China Stock Market & Accounting Research database of 364 listed Chinese chips companies. By integrating natural language processing and machine learning techniques, the paper analyzes textual changes in risk disclosures, providing insights into how firms adapt their risk management strategies in response to evolving market conditions and emerging risks. The study introduces a conceptual model that merges the resource-based view, resource dependence theory and dynamic capabilities with framework of the dynamics of innovation which consists of product innovation and process innovation. The proposed model suggests that strategic use of both R&D subsidies and digital transformation for product/process innovation, thereby enhancing Supply Chain Risk Dynamics Management (SCRDM). Empirical examination of this study reveals that while digital transformation positively influences SCRDM capabilities, enabling better management of supply chain risks, Government R&D subsidy may inadvertently dampen the dynamism essential for effective risk management. Interestingly, the results indicate a negative correlation between SCRDM and firms’ return on assets, highlighting the complexities of aligning risk management with financial outcomes. Focusing on the Chinese chips market, the findings suggest a need for policy refinement to foster rather than hinder flexibility and innovation. This research contributes to scholarly discourse and offers practical guidance for industry leaders and policymakers aiming to strengthen supply chain resilience and boost organizational performance in the chips sector.

Suggested Citation

  • Guo, Hailan & Shen, Zhen & Chen, Yanting & Dong, Ming, 2025. "Analyzing the impact of government R&D subsidy and digital transformation on supply chain risk dynamics management and firm performance in the China's chip industry," International Journal of Production Economics, Elsevier, vol. 281(C).
    • Handle: RePEc:eee:proeco:v:281:y:2025:i:c:s092552732500009x
    DOI: 10.1016/j.ijpe.2025.109524
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092552732500009X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2025.109524?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. Ye, Fei & Liu, Ke & Li, Lixu & Lai, Kee-Hung & Zhan, Yuanzhu & Kumar, Ajay, 2022. "Digital supply chain management in the COVID-19 crisis: An asset orchestration perspective," International Journal of Production Economics, Elsevier, vol. 245(C).
    2. Rameshwar Dubey & Angappa Gunasekaran & David J. Bryde & Yogesh K. Dwivedi & Thanos Papadopoulos, 2020. "Blockchain technology for enhancing swift-trust, collaboration and resilience within a humanitarian supply chain setting," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3381-3398, June.
    3. Chun-Hung Chiu & Tsan-Ming Choi, 2016. "Supply chain risk analysis with mean-variance models: a technical review," Annals of Operations Research, Springer, vol. 240(2), pages 489-507, May.
    4. Gao, Lan & Huang, Ruting, 2024. "Digital transformation and green total factor productivity in the semiconductor industry: The role of supply chain integration and economic policy uncertainty," International Journal of Production Economics, Elsevier, vol. 274(C).
    5. Lars Mönch & Chen-Fu Chien & Stéphane Dauzère-Pérès & Hans Ehm & John W. Fowler, 2018. "Modelling and analysis of semiconductor supply chains," International Journal of Production Research, Taylor & Francis Journals, vol. 56(13), pages 4521-4523, July.
    6. El Baz, Jamal & Ruel, Salomée, 2021. "Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era," International Journal of Production Economics, Elsevier, vol. 233(C).
    7. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov, 2019. "The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 829-846, February.
    8. Ma, Shigui & He, Yong & Gu, Ran & Li, Shanshan, 2021. "Sustainable supply chain management considering technology investments and government intervention," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    9. Sheu, Jiuh-Biing & Chen, Yenming J., 2012. "Impact of government financial intervention on competition among green supply chains," International Journal of Production Economics, Elsevier, vol. 138(1), pages 201-213.
    10. Fan, Huan & Li, Gang & Sun, Hongyi & Cheng, T.C.E., 2017. "An information processing perspective on supply chain risk management: Antecedents, mechanism, and consequences," International Journal of Production Economics, Elsevier, vol. 185(C), pages 63-75.
    11. Meena, Abhilasha & Dhir, Sanjay & Sushil, Sushil, 2024. "Coopetition, strategy, and business performance in the era of digital transformation using a multi-method approach: Some research implications for strategy and operations management," International Journal of Production Economics, Elsevier, vol. 270(C).
    12. Munir, Manal & Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2020. "Supply chain risk management and operational performance: The enabling role of supply chain integration," International Journal of Production Economics, Elsevier, vol. 227(C).
    13. Li, Miaomiao & Cao, Guikun & Cui, Li & Liu, Xiaoquan & Dai, Jing, 2023. "Examining how government subsidies influence firms’ circular supply chain management: The role of eco-innovation and top management team," International Journal of Production Economics, Elsevier, vol. 261(C).
    14. Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2018. "Impact of supply chain risk on agility performance: Mediating role of supply chain integration," International Journal of Production Economics, Elsevier, vol. 205(C), pages 118-138.
    15. Bleda, Mercedes & Krupnik, Seweryn, 2024. "Risks of policy failure in direct R&D support," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    16. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    17. Franco, Cintia Wilke & Benitez, Guilherme Brittes & Sousa, Paulo Renato de & Kliemann Neto, Francisco José & Frank, Alejandro G., 2024. "Managing resources for digital transformation in supply chain integration: The role of hybrid governance structures," International Journal of Production Economics, Elsevier, vol. 278(C).
    18. Dubey, Rameshwar & Bryde, David J. & Blome, Constantin & Dwivedi, Yogesh K. & Childe, Stephen J. & Foropon, Cyril, 2024. "Alliances and digital transformation are crucial for benefiting from dynamic supply chain capabilities during times of crisis: A multi-method study," International Journal of Production Economics, Elsevier, vol. 269(C).
    19. Liliana Avelar-Sosa & Jorge L. García-Alcaraz & José M. Mejía-Muñoz & Aidé A. Maldonado-Macías & Giner Alor Hernández, 2018. "Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    20. Guo, Di & Guo, Yan & Jiang, Kun, 2016. "Government-subsidized R&D and firm innovation: Evidence from China," Research Policy, Elsevier, vol. 45(6), pages 1129-1144.
    21. Guo, Feng & Zou, Bo & Zhang, Xiaofei & Bo, Qingwen & Li, Kai, 2020. "Financial slack and firm performance of SMMEs in China: Moderating effects of government subsidies and market-supporting institutions," International Journal of Production Economics, Elsevier, vol. 223(C).
    22. Yang (Eric) Zhou & Jingjun (David) Xu & Zhiying Liu, 2024. "The impact of digital transformation on corporate innovation: Roles of analyst coverage and internal control," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(1), pages 373-393, January.
    23. Miguel Núñez-Merino & Juan Manuel Maqueira-Marín & José Moyano-Fuentes & Pedro José Martínez-Jurado, 2020. "Information and digital technologies of Industry 4.0 and Lean supply chain management: a systematic literature review," International Journal of Production Research, Taylor & Francis Journals, vol. 58(16), pages 5034-5061, July.
    24. Wang, Wenlin & Rivera, Daniel E. & Kempf, Karl G., 2007. "Model predictive control strategies for supply chain management in semiconductor manufacturing," International Journal of Production Economics, Elsevier, vol. 107(1), pages 56-77, May.
    25. Yang, Gangqiang & Nie, Yiming & Li, Honggui & Wang, Haisen, 2023. "Digital transformation and low-carbon technology innovation in manufacturing firms: The mediating role of dynamic capabilities," International Journal of Production Economics, Elsevier, vol. 263(C).
    26. Rameshwar Dubey & Angappa Gunasekaran & Stephen J. Childe & Samuel Fosso Wamba & David Roubaud & Cyril Foropon, 2021. "Empirical investigation of data analytics capability and organizational flexibility as complements to supply chain resilience," International Journal of Production Research, Taylor & Francis Journals, vol. 59(1), pages 110-128, January.
    27. Wu, Chiu-Hui & Ding, Cherng G. & Jane, Ten-Der & Lin, Hang-Rung & Wu, Cheng-Ying, 2015. "Lessons from the global financial crisis for the semiconductor industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 47-53.
    28. Genc, Talat S., 2024. "A sustainable semiconductor supply chain under regulation," International Journal of Production Economics, Elsevier, vol. 278(C).
    29. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    30. ManMohan S. Sodhi & Christopher S. Tang, 2021. "Supply Chain Management for Extreme Conditions: Research Opportunities," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(1), pages 7-16, January.
    31. Man Zhu & Hongyan Gao, 2021. "The antecedents of supply chain agility and their effect on business performance: an organizational strategy perspective," Operations Management Research, Springer, vol. 14(1), pages 166-176, June.
    32. Saura, Jose Ramon & Ribeiro-Navarrete, Samuel & Palacios-Marqués, Daniel & Mardani, Abbas, 2023. "Impact of extreme weather in production economics: Extracting evidence from user-generated content," International Journal of Production Economics, Elsevier, vol. 260(C).
    33. Chowdhury, Md Maruf H. & Quaddus, Mohammed, 2017. "Supply chain resilience: Conceptualization and scale development using dynamic capability theory," International Journal of Production Economics, Elsevier, vol. 188(C), pages 185-204.
    34. Christian Terwiesch & Z. Justin Ren & Teck H. Ho & Morris A. Cohen, 2005. "An Empirical Analysis of Forecast Sharing in the Semiconductor Equipment Supply Chain," Management Science, INFORMS, vol. 51(2), pages 208-220, February.
    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. Zhao, Nanyang & Hong, Jiangtao & Lau, Kwok Hung, 2023. "Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model," International Journal of Production Economics, Elsevier, vol. 259(C).
    2. Betto, Frida & Garengo, Patrizia, 2023. "A circular pathway for developing resilience in healthcare during pandemics," International Journal of Production Economics, Elsevier, vol. 266(C).
    3. Ali, Imran & Arslan, Ahmad & Chowdhury, Maruf & Khan, Zaheer & Tarba, Shlomo Y., 2022. "Reimagining global food value chains through effective resilience to COVID-19 shocks and similar future events: A dynamic capability perspective," Journal of Business Research, Elsevier, vol. 141(C), pages 1-12.
    4. Massari, Giovanni Francesco & Nacchiero, Raffaele & Giannoccaro, Ilaria, 2025. "Transformative supply chains: the enabling role of digital technologies," International Journal of Production Economics, Elsevier, vol. 283(C).
    5. Salomée Ruel & Jamal El Baz & Dmitry Ivanov & Ajay Das, 2024. "Supply chain viability: conceptualization, measurement, and nomological validation," Annals of Operations Research, Springer, vol. 335(3), pages 1107-1136, April.
    6. Tiwari, Manisha & Bryde, David J. & Stavropoulou, Foteini & Dubey, Rameshwar & Kumari, Sushma & Foropon, Cyril, 2024. "Modelling supply chain Visibility, digital Technologies, environmental dynamism and healthcare supply chain Resilience: An organisation information processing theory perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    7. Dubey, Rameshwar & Bryde, David J. & Dwivedi, Yogesh K. & Graham, Gary & Foropon, Cyril & Papadopoulos, Thanos, 2023. "Dynamic digital capabilities and supply chain resilience: The role of government effectiveness," International Journal of Production Economics, Elsevier, vol. 258(C).
    8. Raffaele Nacchiero & Giovanni Francesco Massari & Ilaria Giannoccaro, 2024. "Supply chain transformative capabilities and their microfoundations for circular economy transition: A qualitative study in Made in Italy sectors," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8695-8715, December.
    9. Jingsi Zhang & Liangqun Qi, 2021. "Crisis Preparedness of Healthcare Manufacturing Firms during the COVID-19 Outbreak: Digitalization and Servitization," IJERPH, MDPI, vol. 18(10), pages 1-23, May.
    10. Munir, Muhammad Adeel & Hussain, Amjad & Farooq, Muhammad & Rehman, Ateekh Ur & Masood, Tariq, 2024. "Building resilient supply chains: Empirical evidence on the contributions of ambidexterity, risk management, and analytics capability," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    11. Dubey, Rameshwar & Gunasekaran, Angappa & Papadopoulos, Thanos, 2024. "Benchmarking operations and supply chain management practices using Generative AI: Towards a theoretical framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 189(C).
    12. Ghafoori, Arman & Gupta, Manjul & Merhi, Mohammad I. & Gupta, Samrat & Shore, Adam P., 2024. "Toward the role of organizational culture in data-driven digital transformation," International Journal of Production Economics, Elsevier, vol. 271(C).
    13. Aziz Barhmi & Omar Hajaji, 2023. "Multidisciplinary Approach to Supply Chain Resilience: Conceptualization and Scale Development," Central European Business Review, Prague University of Economics and Business, vol. 2023(5), pages 43-69.
    14. Samadhiya, Ashutosh & Yadav, Sanjeev & Kumar, Anil & Majumdar, Abhijit & Luthra, Sunil & Garza-Reyes, Jose Arturo & Upadhyay, Arvind, 2023. "The influence of artificial intelligence techniques on disruption management: Does supply chain dynamism matter?," Technology in Society, Elsevier, vol. 75(C).
    15. Haris Aslam & Maimoona Waseem & Dilnaz Muneeb & Zulqurnain Ali & David Roubaud & Oksana Grebinevych, 2025. "Customer integration in the supply chain: the role of market orientation and supply chain strategy in the age of digital revolution," Annals of Operations Research, Springer, vol. 348(3), pages 2145-2169, May.
    16. Shahriar Akter & Saradhi Motamarri & Shahriar Sajib & Ruwan J. Bandara & Shlomo Tarba & Demetris Vrontis, 2024. "Theorising the Microfoundations of analytics empowerment capability for humanitarian service systems," Annals of Operations Research, Springer, vol. 335(3), pages 989-1013, April.
    17. El Baz, Jamal & Ruel, Salomée, 2021. "Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era," International Journal of Production Economics, Elsevier, vol. 233(C).
    18. Burgos, Diana & Ivanov, Dmitry, 2021. "Food retail supply chain resilience and the COVID-19 pandemic: A digital twin-based impact analysis and improvement directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    19. Ozdemir, Dilek & Sharma, Mahak & Dhir, Amandeep & Daim, Tugrul, 2022. "Supply chain resilience during the COVID-19 pandemic," Technology in Society, Elsevier, vol. 68(C).
    20. Sooksan Kantabutra & Nuttasorn Ketprapakorn, 2021. "Toward an Organizational Theory of Resilience: An Interim Struggle," Sustainability, MDPI, vol. 13(23), pages 1-28, November.

    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:proeco:v:281:y:2025:i:c:s092552732500009x. 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/ijpe .

    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.