IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v288y2025ics0925527325002130.html
   My bibliography  Save this article

Diffusion of digital transformation initiatives in multi-tier supply chains: The double agency role of Tier-1 suppliers

Author

Listed:
  • Zhang, Zhi
  • Mishra, Nishikant
  • Wulandhari, Nur Baiti Ingga
  • Gölgeci, Ismail
  • Singh, Akshit

Abstract

Growing global supply chain complexity has generated interest in multi-tier management, yet most research focuses on focal firm and Tier–1 ties, overlooking Tier-2 dynamics. A specific gap exists in investigating Digital Transformation Initiatives (DTI) within triadic relationships among the focal firm and its Tier-1 and Tier-2 suppliers. This study addresses this gap by utilizing a multiple-case study approach across diverse sectors, drawing on 30 interviews, to examine the diffusion of DTI across multi-tier supply chains, with particular attention to the Double Agency Role (DAR) of Tier-1 suppliers. Using social capital theory and agency theory, our findings emphasize the key role of social capital in the DAR of Tier-1 suppliers. The importance of relational and cognitive capital varies as we shift from downstream to upstream segments of the supply chain. Relational capital is crucial in the downstream segment (focal firm–Tier-1 supplier), while cognitive capital grows in significance as we move upstream (Tier-1–Tier-2 suppliers). Additionally, we create a matrix to illustrate the relationships among social capital, the DAR, and the effectiveness of DTI diffusion. This study contributes to the digital transformation literature by expanding its focus from dyadic to triadic relationships. It also offers practical implications for supply chain managers, providing actionable insights to enhance the diffusion of DTI.

Suggested Citation

  • Zhang, Zhi & Mishra, Nishikant & Wulandhari, Nur Baiti Ingga & Gölgeci, Ismail & Singh, Akshit, 2025. "Diffusion of digital transformation initiatives in multi-tier supply chains: The double agency role of Tier-1 suppliers," International Journal of Production Economics, Elsevier, vol. 288(C).
    • Handle: RePEc:eee:proeco:v:288:y:2025:i:c:s0925527325002130
    DOI: 10.1016/j.ijpe.2025.109728
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527325002130
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2025.109728?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

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:proeco:v:288:y:2025:i:c:s0925527325002130. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.