IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v98y2025ics1057521925000092.html
   My bibliography  Save this article

Digital transformation and corporate innovation boundaries: Role of supply chain concentration and transparency

Author

Listed:
  • Li, Pengcheng
  • Guo, Xiaochuan
  • Wang, Fengzheng
  • Zhang, Qifeng

Abstract

Digital transformation reshapes business operations, yet its impact on corporate innovation boundaries remains unclear. Although research has explored the impact of digital transformation on firm performance, understanding how it interacts with supply chain dynamics to shape innovation scope is limited, particularly in emerging economies. This study investigates how digital transformation affects innovation boundaries and the moderating roles of supply chain concentration and transparency. Analyzing panel data from Chinese listed companies between 2007 and 2022, we employ multiple regression models and address endogeneity through instrumental variables and Heckman selection approaches. Results indicate that digital transformation considerably expands innovation boundaries, exacerbated by customer and supplier concentration. Supply chain transparency further amplifies this relationship, highlighting the value of information visibility. Notably, the impact of digital transformation is more pronounced in nonhigh-tech and nonheavily polluting industries, calling into question conventional wisdom about technology adoption benefits. These findings advance innovation management theory by demonstrating how supply chain characteristics shape firms' ability to leverage digital technologies for innovation, while offering practical insights for managers seeking to optimize their digital transformation strategies.

Suggested Citation

  • Li, Pengcheng & Guo, Xiaochuan & Wang, Fengzheng & Zhang, Qifeng, 2025. "Digital transformation and corporate innovation boundaries: Role of supply chain concentration and transparency," International Review of Financial Analysis, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:finana:v:98:y:2025:i:c:s1057521925000092
    DOI: 10.1016/j.irfa.2025.103922
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521925000092
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.103922?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 search for a different version of it.

    More about this item

    Keywords

    Digital transformation; Innovation boundary; Customer concentration; Supplier concentration; Supply chain transparency;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    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:finana:v:98:y:2025:i:c:s1057521925000092. 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/inca/620166 .

    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.