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Digital Transformation and Supply Chain Resilience in Resource-Constrained Regions: Evidence from Central and Western China

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  • Yang Jiang

    (School of International Economics and Trade, Lanzhou University of Finance and Economics, Lanzhou 730020, China)

  • Jijing Hang

    (School of International Economics and Trade, Lanzhou University of Finance and Economics, Lanzhou 730020, China)

Abstract

In recent years, global supply chains have become increasingly vulnerable to geopolitical tensions, pandemics, and energy crises, particularly in resource-constrained regions characterized by weak infrastructure and high transaction costs. Using panel data on A-share listed firms in China’s central and western regions from 2010 to 2022, this study examines the effect of firm-level digital transformation on supply chain resilience. We construct a digital transformation index and employ an instrumental-variable approach based on the interaction between terrain ruggedness and lagged digital transformation to address endogeneity concerns. Empirical results show that the digital transformation of enterprises has significantly enhanced the resistance and recovery capabilities of the supply chain, verifying its effectiveness in resource-constrained environments. Mechanism analyses reveal that this effect operates through increased supply chain diversification—especially customer diversification—and improved supply–demand matching enabled by more accurate demand forecasting and inventory management. Heterogeneity tests indicate that the resilience-enhancing effects are more pronounced among non-state-owned firms, manufacturing enterprises, and firms in less technology-intensive industries. Overall, our findings provide empirical support for transaction cost economics, dynamic capability theory, and the resource-based view, highlighting the strategic role of digital investment in strengthening supply chain resilience in infrastructure-constrained settings and contributing to the aims of Sustainable Development Goal 9.

Suggested Citation

  • Yang Jiang & Jijing Hang, 2026. "Digital Transformation and Supply Chain Resilience in Resource-Constrained Regions: Evidence from Central and Western China," Sustainability, MDPI, vol. 18(2), pages 1-18, January.
  • Handle: RePEc:gam:jsusta:v:18:y:2026:i:2:p:802-:d:1839542
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