 How supply chain digitalization investment affects firm's financial and non-financial performance: Evidence from listed companies in ChinaYongqiu Wu, Jie Wang and Pianpian Yang International Review of Financial Analysis, 2024, vol. 96, issue PA Abstract: Although many studies have focused on the impact of digitalization on firm performance, a definitive conclusion has yet to be reached. This study aims to comprehensively reveal the mechanisms by which SCDI affects firm performance. We employ large language model to identify the annual report information, and measure the SCDI for Chinese listed companies from 2017 to 2022. The empirical results indicate that SCDI contributes to improving supply chain capabilities, including reducing supply chain risk and enhancing supply chain efficiency. However, it also leads to increased financial risk and resource slack. Furthermore, SCDI decreases financial performance but increases non-financial performance. This study is an early attempt to uncover the paradoxical outcomes of SCDI, providing a new explanation of digitalization failure and the mechanisms behind the “IT-productivity paradox” hypothesis. Keywords: Supply chain digitalization; Supply chain capability; Resource slack; Firm performance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:96:y:2024:i:pa:s1057521924005714 DOI: 10.1016/j.irfa.2024.103639 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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