Customer-driven value creation in the digital economy: Determining the role of customer firms’ digital transformation on supplier performance in China

Chonghui Zhang, Binfeng Chai, Sultan Sikandar Mirza and Ying Jin

Omega, 2024, vol. 128, issue C

Abstract: This study examines how customer firms’ digital transformation affects the performance and value creation of their suppliers in the Chinese context. We use text mining to construct digital transformation indicators for customer firms based on data from Chinese A-share-listed firms from 2011 to 2021. We find that customer firms’ digital transformation has a positive and significant impact on supplier performance, and this effect is robust to various sensitivity tests. We also find that customer firms’ digital transformation influences supplier performance through two mechanisms: demand push and innovation spillover. Moreover, the heterogeneity analysis reveals that the effect of customer firms’ digital transformation on supplier performance varies by different factors, such as geographic distance, customer concentration, ownership type, and industry type. This study contributes to the literature on supply chain value from a customer-driven perspective and provides practical implications for supply chain firms to leverage digital transformation to enhance their performance and competitive advantage.

Keywords: Supply chain management; Digital transformation; Corporate performance; Demand reversal; Innovation spillover (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305048324000987
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:128:y:2024:i:c:s0305048324000987

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.omega.2024.103132

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().