The advent of digital technology has fundamentally altered the traditional modes of information exchange within enterprises, thereby impacting the concentration of supply chains. This study presents an empirical examination of the effects and underlying mechanisms by which digital transformation influences supply chain concentration, utilizing data from Chinese A-share listed companies spanning 2011 to 2021. The findings reveal that digital transformation enhances information transparency and reduces transaction costs, consequently contributing to a decrease in the concentration of enterprise supply chains. It is observed that the adoption of digital transformation leads to a significant diminution in supply chain concentration, a conclusion that retains its significance even under robustness testing. Further investigation indicates a more pronounced impact of digital transformation on diminishing the concentration of state-owned enterprise supply chains compared to their non-state-owned counterparts. This research enriches the understanding of the impact of digital transformation on supply chain concentration, offering theoretical support for the acceleration of a unified large market development in China. The study underscores the transformative role of digital technology in reshaping enterprise supply chains, highlighting the necessity for strategic digital integration in modern business practices.
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Xu et al. (2023) studied this question.
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