Can digital transformation enable distressed manufacturing SMEs turnaround? The mediating role of supply chain resilience
Feifei Yu et al.
What the paper says
Introduction. This study examines how digital transformation affects the turnaround performance of manufacturing small and medium-sized enterprises (SMEs) under financial distress. While digital transformation is widely regarded as a critical driver of competitiveness, its role in the recovery of distressed firms remains insufficiently understood. Method. We draw on data from financially distressed manufacturing SMEs and develop an empirical framework to assess the relationship between digital transformation, supply chain resilience, and turnaround performance. Analysis. A quantitative analysis was conducted on a dataset comprising 436 manufacturing SMEs in financial distress. Using Stata, we tested the nonlinear effects of digital transformation and examined the mediating role of supply chain resilience. Results. The findings reveal an inverted U-shaped relationship between digital transformation and turnaround performance. Specifically, moderate levels of digital transformation enhance supply chain resilience, which in turn facilitates effective turnaround, whereas excessive transformation reduces resilience and impedes recovery. Conclusion(s). This study contributes to digital transformation and crisis management research by demonstrating its dual impact on SMEs’ turnaround. It identifies supply chain resilience as the key mechanism linking digital transformation to recovery and offers insights for managers to balance digital investment with organisational adaptability.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.