Enhancing digital transformation: exploring the role of supply chain diversification and dynamic capabilities in Chinese companies

Purpose Drawing upon the extended resource-based view (ERBV), this research aims to examine the effects of supply chain diversification (SCD) on enterprise digital transformation (DT), focusing on the external perspective of the supply chain. Design/methodology/approach Leveraging panel data from Chinese A-share listed companies from 2015 to 2022, this research employs multiple regression analysis to empirically examine the relationship between SCD and enterprise DT. Findings The results of analysis indicate that: (1) SCD positively influences enterprise DT, a relationship that persists even after rigorous endogenous and serial robustness testing. (2) SCD fosters enterprise DT by bolstering its absorption, innovation, and adaptive capabilities. (3) Executive risk preferences and Pilot Policies positively mediate the effects of SCD on enterprise DT. Originality/value This research provides novel empirical insights into the underlying mechanism linking SCD and enterprise DT. The findings offer valuable guidance for enterprises seeking to optimize supply chain management and embrace DT, while also informing policymakers on strategies to facilitate SCD and DT enhancement among enterprises.