Digital Transformation and Supply Chain Resilience in Resource-Constrained Regions: Evidence from Central and Western China

In recent years, global supply chains have become increasingly vulnerable to geopolitical tensions, pandemics, and energy crises, particularly in resource-constrained regions characterized by weak infrastructure and high transaction costs. Using panel data on A-share listed firms in China’s central and western regions from 2010 to 2022, this study examines the effect of firm-level digital transformation on supply chain resilience. We construct a digital transformation index and employ an instrumental-variable approach based on the interaction between terrain ruggedness and lagged digital transformation to address endogeneity concerns. Empirical results show that the digital transformation of enterprises has significantly enhanced the resistance and recovery capabilities of the supply chain, verifying its effectiveness in resource-constrained environments. Mechanism analyses reveal that this effect operates through increased supply chain diversification—especially customer diversification—and improved supply–demand matching enabled by more accurate demand forecasting and inventory management. Heterogeneity tests indicate that the resilience-enhancing effects are more pronounced among non-state-owned firms, manufacturing enterprises, and firms in less technology-intensive industries. Overall, our findings provide empirical support for transaction cost economics, dynamic capability theory, and the resource-based view, highlighting the strategic role of digital investment in strengthening supply chain resilience in infrastructure-constrained settings and contributing to the aims of Sustainable Development Goal 9.

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Publication Details

Journal
Sustainability
Published
2026-01-13
DOI
https://doi.org/10.3390/su18020802
Primary Topic
Supply Chain Resilience and Risk Management
Type
article
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article

Digital Transformation and Supply Chain Resilience in Resource-Constrained Regions: Evidence from Central and Western China

Yang Jiang, Jijing Hang
Sustainability
Supply Chain Resilience and Risk Management
article

Digital Transformation and Supply Chain Resilience in Resource-Constrained Regions: Evidence from Central and Western China

Yang Jiang, Jijing Hang
article en

Abstract

In recent years, global supply chains have become increasingly vulnerable to geopolitical tensions, pandemics, and energy crises, particularly in resource-constrained regions characterized by weak infrastructure and high transaction costs. Using panel data on A-share listed firms in China’s central and western regions from 2010 to 2022, this study examines the effect of firm-level digital transformation on supply chain resilience. We construct a digital transformation index and employ an instrumental-variable approach based on the interaction between terrain ruggedness and lagged digital transformation to address endogeneity concerns. Empirical results show that the digital transformation of enterprises has significantly enhanced the resistance and recovery capabilities of the supply chain, verifying its effectiveness in resource-constrained environments. Mechanism analyses reveal that this effect operates through increased supply chain diversification—especially customer diversification—and improved supply–demand matching enabled by more accurate demand forecasting and inventory management. Heterogeneity tests indicate that the resilience-enhancing effects are more pronounced among non-state-owned firms, manufacturing enterprises, and firms in less technology-intensive industries. Overall, our findings provide empirical support for transaction cost economics, dynamic capability theory, and the resource-based view, highlighting the strategic role of digital investment in strengthening supply chain resilience in infrastructure-constrained settings and contributing to the aims of Sustainable Development Goal 9.

SustainabilityVol. 18(2)
Lanzhou University of Finance and Economics (CN)
Industry, innovation and infrastructure
Openalex Percentile: Top 90%
Supply Chain Resilience and Risk Management
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Digital Transformation and Supply Chain Resilience in Resource-Constrained Regions: Evidence from Central and Western China — Yang Jiang, Jijing Hang · Sustainability (2026) | TGRS Research Map | TGRS