The Impact of Digital Technology Innovation on the Supply Chain Position: Micro Evidence from the Chinese New Energy Vehicle Companies

With the rapid development of digital technology and the increasing focus on the global supply chain network, it has become a new challenge for international companies to select digital technology innovation projects in an efficient way, so as to improve their supply chain position and competitiveness. Prior works have identified the effects of digital technology adoption on companies’ supply chain positions; however, there has been limited research on the impact of digital technology innovation heterogeneity on companies’ supply chain position and the pathways through which this effect plays out. Hence, based on the global supply chain panel data from Chinese new energy vehicle companies, this study used a two-way fixed-effects model and causal stepwise regression analysis to study the impact of digital technological innovation on companies’ supply chain position and the dynamic mechanisms between them. The empirical results show that all three types of digital technology innovations, in the design and development process, the production and manufacturing process, and the sales and after-sales process, significantly enhance the company’s supply chain position. Further mechanism analysis shows that digital technology innovations enhance the company’s managerial efficiency and profitability mainly by reducing costs and increasing revenues, which ultimately improves the company’s supply chain position. This paper can provide a reference for policy makers to promote the application and development of a company’s digital technology and enhancing the supply chain position.