Digital Transformation and Operational Efficiency: Evidence from Buyer Firms Under Supply Chain Uncertainty
DOI: https://doi.org/10.65967/cpbo.v2i1.78
digital transformation, operational efficiency, information processing theory, supply chain management, buyer–supplier relationship
Abstract
This study examines the effect of digital transformation (DT) on operational efficiency from a buyer–supplier perspective by applying Information Processing Theory (IPT). Although digital transformation is widely recognized as a strategic approach to improving business performance, empirical evidence remains inconclusive, with many organizations failing to achieve the expected operational benefits. In addition, the influence of uncertainties arising from buyer–supplier relationships has received limited empirical attention. Using secondary data from 257 Chinese A-share listed buyer firms, comprising 892 firm-year observations, this research analyzes the direct effect of DT on operational efficiency and investigates the moderating roles of buyers’ technological resources, supplier digitalization, buyer–supplier distance, and supplier dependency. The findings indicate that digital transformation significantly improves operational efficiency. Furthermore, the positive effect is strengthened by higher levels of buyers’ technological resources and supplier dependency, whereas supplier digitalization and buyer–supplier distance do not significantly moderate the relationship. These findings provide empirical evidence that the effectiveness of digital transformation depends not only on technology adoption but also on organizational capabilities and supply chain conditions that shape information processing capacity. This study contributes to the digital transformation and supply chain management literature by extending the application of Information Processing Theory to explain how different sources of uncertainty influence operational outcomes. The findings also offer practical implications for managers seeking to optimize digital transformation strategies and for policymakers designing initiatives that support sustainable digitalization across supply chains.
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