Supply chain diffusion effect and digital transformation of small and medium-sized suppliers

Xueyan Xie and Tianqing Wang

Economic Analysis and Policy, 2025, vol. 87, issue C, 2126-2145

Abstract: Both digital transformation and supply chain system construction are important measures to promote economic development. Although small and medium-sized enterprises (SMEs) face many difficulties in digital transformation, integrating into the supply chain system and establishing cooperative relationships with customers with technological innovation capabilities can provide new paths and possibilities for them. This paper uses the data of NEEQ listed companies and their customers from 2014 to 2023 to deeply investigate the impact of customer technological innovation on the digital transformation of small and medium-sized suppliers (SME suppliers). The research results show that customer technological innovation has a significant promoting effect on the digital transformation of SME suppliers, and this effect is more significant when they are private enterprises, located in the eastern and central regions, and in cities with developed transportation infrastructure. Mechanism tests show that customer technological innovation can generate knowledge spillovers, improve the labor structure, and relieve the financing constraints of SME suppliers, thereby promoting the digital transformation of them. The study on the moderating effect finds that a high degree of dependence on customers and economic uncertainty will weaken the above effects. These findings suggest key policy implications: SMEs should integrate into high-tech innovative supply chains, and governments should implement policies to mitigate SME shortages in technology, talent, and capital for digital transformation.

Keywords: Supply chain; Technological innovation; Digital transformation; Labor structure; Financing constraint (search for similar items in EconPapers)
JEL-codes: D22 D24 G30 G34 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:87:y:2025:i:c:p:2126-2145

DOI: 10.1016/j.eap.2025.08.005

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