The dual impact of supply chain digitalization: Amplifying subjective risk perception, innovating and mitigating objective risk exposure

With the growing complexity and uncertainty of the global supply chain, firms face more severe supply chain risks. This study integrates subjective risk perception and objective risk exposure into a unified analytical framework to explore the impact of supply chain digitalization (SCD) on firms’ supply chain risks. The findings indicate that SCD significantly enhances firms’ subjective risk perception while effectively reducing their objective risk exposure. After conducting robustness checks, the results remain robust. Mechanism analysis suggests that SCD primarily enhances firms’ risk perception and reduces actual risks through information and technological channels. Moreover, this study performs a heterogeneity analysis considering industry monopoly level, internal control quality, and financing constraints, revealing significant differences in the risk mitigation effects of SCD across industries and firm characteristics. Our research provides practical insights for firms in managing supply chain risks during digitalization and offers theoretical guidance for policymakers in formulating relevant strategies.