Enhancing enterprise investment efficiency through digital transformation: the role of supply chain diversification

Lihui Du & Yanghui Liu

International Journal of Emerging Markets2026https://doi.org/10.1108/ijoem-04-2025-0807article
AJG 1ABDC B
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0.50

Abstract

Purpose Drawing on the extended resource-based view (ERBV), this study aims to explore the effect of digital transformation (DT) on corporate investment efficiency (IE) and the mediating role of supply chain diversification (SCD). Design/methodology/approach The proposed hypotheses are empirically tested based on the ordinary least squares model with a sample of China’s A-share listed companies from 2011 to 2023. Findings First, DT can improve IE. Second, DT improves IE by enhancing SCD. Third, both executives with IT backgrounds (EITB) and government subsidies (GS) positively moderate the relationship between DT and IE. Practical implications Firms should pursue DT while actively developing SCD to enhance IE, and leverage EITB to strengthen digital leadership. Policymakers can facilitate these initiatives by refining subsidy mechanisms and providing clear guidance for DT implementation. Originality/value This study diverges from prior work that links DT to IE mainly through financing constraints and agency costs by examining the mediating role of SCD. This enriches the ERBV framework and extends its relevance to the digital economy. Incorporating EITB and GS as moderators further reveals boundary conditions shaping the relationship between DT and IE.

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https://doi.org/https://doi.org/10.1108/ijoem-04-2025-0807

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@article{lihui2026,
  title        = {{Enhancing enterprise investment efficiency through digital transformation: the role of supply chain diversification}},
  author       = {Lihui Du & Yanghui Liu},
  journal      = {International Journal of Emerging Markets},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/ijoem-04-2025-0807},
}

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