Analysis shows digital transformation improves resource allocation and reduces bullwhip effect in supply chains, suggesting enhanced management and communication quality.
Since data elements were incorporated as a production factor in China in 2019, enterprise digital transformation has emerged as a pivotal force driving the digital economy. This study, adopting a supply chain perspective, analyses Chinese listed companies with disclosed supplier-customer information from 2010 to 2022, examining how their digital transformation influences the supply chain bullwhip effect and its underlying mechanisms. The findings reveal that digital transformation notably mitigates the bullwhip effect, with blockchain technology exerting the strongest impact. It enhances resource allocation efficiency, spurs R&D and innovation investment to alleviate the bullwhip effect, and breaks down information silos. Moreover, a higher proportion of heterogeneous institutional shareholding further amplifies this mitigation, particularly when there is no geographical proximity between companies and their suppliers or customers. This suggests that digital transformation can strengthen inter-regional communication, dismantle information barriers, and enable more efficient processing of supply-demand information. Overall, this paper provides fresh insights into optimising supply-demand structures, alleviating overcapacity, and improving supply chain information transmission. It also offers empirical evidence supporting the role of data-to-information transformation in enhancing enterprise production and management, thereby effectively addressing information distortion and refining supply-demand dynamics.
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Sun et al. (2025) studied this question.
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