Leveraging digital transformation for customer stability in sustainable supply chains: a dynamic capability perspective

This study examines the role of digital transformation as a strategic tool to enhance customer stability, aligning with the growing importance of digitalisation in logistics and supply chain management. By constructing a digital transformation indicator with text mining techniques and analyzing data from 8,587 firm-year observations of 2,205 listed Chinese enterprises between 2010 and 2022, this study finds that enterprise digital transformation has a significant positive effect on customer stability. This effect can be generated through two primary mechanisms: the improvement of product competitiveness and the enhancement of information transparency. Furthermore, the positive impact is more significant in non-state-owned enterprises and enterprises in the maturity stage. This study contributes to the literature by linking digital transformation to customer stability in sustainable supply chains and uncovering its underlying mechanisms from a dynamic capability perspective. The findings offer valuable insights for practitioners and policymakers in optimising supply chain management for sustainable growth.