How does supply chain digitalization promote firm innovation? A resource scalability perspective

With digital technology deeply embedded in supply chain management, supply chain digitalization (SCD) has transformed into a key driving force for resource reconstruction and strategic innovation. However, studies have mainly explored the internal effects of digitalization at the enterprise level, ignoring how digitalization reconstructs interorganizational resource exchange and collaborative innovation mechanisms across supply chain networks. This study addresses the lacuna through a quasi-natural experiment using the pilot policy of “Supply Chain Innovation and Application” in China. We adopt the difference-in-differences method and employ the panel data of Chinese A-share listed companies for the period 2013–2023. The results indicate that SCD increases the innovation input of enterprises and improves their quality. These effects occur through two pathways of resource scalability. Vertically, digitalization relieves the supply–demand mismatch and improves the accuracy and responsiveness of resource allocation in the chain. Horizontally, it reduces the dependence on core suppliers and customers, thus expanding access to heterogeneous external resources and promoting cross-organizational cooperation. Based on the theory of resource interaction, this study identifies that innovation benefits are derived from the scalability of digital resources and their integration with complementary resources with low scalability.