Does industrial robot innovation reduce supply chain dependency: evidence from China

Purpose The rapid diffusion of digital and AI-enabled automation technologies has fundamentally reshaped firms' production systems and inter-organizational relationships. Our study aims to investigate whether and how industrial robot innovation reduces corporate supply chain dependency, with particular attention to the underlying mechanisms through which such effects materialize in the context of digital transformation. Design/methodology/approach Using an unbalanced panel of China A-share listed firms from 2011 to 2021, we empirically examine the relationship between industrial robot innovation and supply chain dependency. Findings The results indicate that industrial robot innovation significantly improves supply chain dependency. Mechanism analyses show that this effect operates through three main channels: facilitating digital transformation, strengthening firms' dynamic capabilities, and reducing supply chain concentration. Further analyses reveal substantial heterogeneity in these effects across firms with different levels of profitability, information capabilities, R&D intensity and financing capacity. Beyond supply chain dependency, we find that the optimization of supply chain structures induced by industrial robot innovation enhances firms' risk-taking capacity and improves the quality of accounting information. Finally, we further find that the effect of industrial robot innovation is more pronounced among manufacturing firms, non-high-tech firms, labor-intensive firms and firms producing welding robots. Research limitations/implications First, we proxy supply chain dependency using supply chain concentration, while other dimensions such as stability, supply chain finance and relationship specific investments are not examined. Second, we focus on industrial robotics innovation related to product innovation and do not consider service robotics innovation, which may limit generalizability. Third, our robotics innovation measure is based on patent applications; delays in approval or non-approval may introduce measurement noise. Practical implications Firms should increase robotics investment, enhance digital capabilities and adaptability and monitor innovation among supply chain partners to anticipate shifts in bargaining power. Investors may incorporate robotics innovation into screening because innovative firms exhibit stronger risk resilience and higher accounting information quality, while considering R&D intensity, profitability and financing capacity. Regulators can refine incentive policies, encourage industry academia collaboration and support international cooperation to foster robotics innovation and improve national supply chain dependency. Originality/value Our study contributes to the literature by clarifying the role of industrial robot innovation in reshaping supply chain structures and competitiveness under digital transformation. By linking AI-enabled innovation to supply chain governance and broader organizational outcomes, the findings offer new insights into innovation dynamics and provide actionable implications for managers seeking to build resilient and sustainable supply chains.