The Spillover of Digital Transformation in Supply Chain Innovation

Based on a sample of Chinese listed firms from 2010 to 2024, this study employs a complex adaptive systems (CAS) lens to investigate the spillover effects of core-firm digital transformation (CDT) on innovation within supply chain networks. It reveals that CDT fosters supplier innovation while impeding customer innovation. Heterogeneity analysis shows that the spillover effect is more pronounced when suppliers (customers) are non-state-owned, larger, more competitive, and have more able managers. Mechanism analysis suggests that the spillover effect is realized through resource and competition mechanisms. This study contributes to the literature by integrating CAS theory with established supply chain management perspectives to provide a systemic understanding of digital transformation’s ripple effects, offering valuable insights for both managers navigating digital ecosystem evolution and policymakers designing industrial innovation strategies.