Enterprise digital transformation and employment: Spillover effect within supply chains

This study investigates the spillover effect of enterprise digital transformation on employment within supply chains using Chinese A-share listed enterprises spanning from 2009 to 2022. The results suggest a positive impact of customers' digital transformation on suppliers' employment. We identify three potential mechanisms underlying it: customers' digital transformation drives the digital transformation process, alleviates financial constraints, and enhances sales of suppliers. Heterogeneity analysis reveals that this effect is particularly pronounced among state-owned suppliers and within the manufacturing industries. Overall, our study contributes to the research field concerning the economic impacts of digital transformation in enterprises and its spillover effects.