Digitalization as a Systemic Enabler: Expanding the Geographic Scope of Global Supplier Networks in Chinese Firms

Geographically dispersed supplier networks represent a crucial strategy for firms to mitigate supply chain dependencies. This study investigates how the digitalization of enterprises enables firms to expand their global supplier base. Grounded in resource dependence theory, we argue that digitalization helps firms identify suitable suppliers worldwide and manage complex multinational networks. We utilize a multidimensional digitalization index covering six dimensions: strategic leadership, digital outputs, technology drive, organizational enablement, digital application, and environmental support. Using data on Chinese listed companies from 2011 to 2023, our findings reveal that digitalization significantly expands suppliers’ geographic scope, especially under high economic policy uncertainty, world trade uncertainty, and geopolitical risks. Further analyses indicate that process and technological innovations are the primary drivers within digitalization, and that geographic expansion occurs mainly into Asia, Europe, and America. These findings position digitalization as a systemic enabler for building global supplier networks and a strategic response to external uncertainty. Our study extends resource dependence theory by demonstrating how digitalization facilitates the management of dependencies at the network level.