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Examines the U-shaped relationship between digitalization and supply chain concentration in high-tech industries, suggesting implications for resilience.
Enhancing supply chain resilience and security in high-tech industries is crucial for mitigating risks arising from dependence on critical technologies amid global uncertainties. Using firm- and product-level data from China’s high-tech industries during 2010–2022, this study investigates how industrial digitalization affects upstream supply chain source concentration (USC) at the industry level through a two-way fixed effects model. The results reveal a U-shaped relationship between industrial digitalization and USC, mediated by human capital accumulation and risk-taking capacity. The effect is stronger in labor-intensive and highly concentrated industries, reflecting long-term strategic adjustments rather than short-term fluctuations. The findings call for a balanced digitalization strategy that manages its dual effects, reinforces human capital and risk management capacity, and relies on coherent institutional frameworks to sustain transformation and strengthen supply chain resilience.
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Zhang et al. (2026) studied this question.
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