Yinan Qi , Kexin Hou , Min Zhang , Tianlong Pu , Hangfei Guo
{"title":"Digitalization and financial performance: A supply chain perspective","authors":"Yinan Qi , Kexin Hou , Min Zhang , Tianlong Pu , Hangfei Guo","doi":"10.1016/j.im.2025.104199","DOIUrl":null,"url":null,"abstract":"<div><div>Digitalization is widely regarded as a strategic approach to gaining competitive advantage. However, some firms have suffered from the digitalization paradox, meaning that investments in digitalization cannot always achieve the expected performance improvement. This study examines how the digitalization of a firm affects its financial performance and the moderating effect of digitalization proximity between the firm and its supplier. The results suggest an inverted U-shaped relationship between a firm’s digitalization and financial performance. Furthermore, the positive moderating role of digitalization proximity in this nonlinear relationship suggests that alignment with suppliers in digitalization allows a firm to materialize the benefits of digitalization. This study provides evidence of the complex relationship between digitalization and financial performance. It empirically demonstrates the importance of aligning with supply chain partners for digitalization to enhance performance benefits. It also offers practical guidance for managers in navigating the evolving digital landscape.</div></div>","PeriodicalId":56291,"journal":{"name":"Information & Management","volume":"62 7","pages":"Article 104199"},"PeriodicalIF":8.2000,"publicationDate":"2025-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Information & Management","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0378720625001028","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"COMPUTER SCIENCE, INFORMATION SYSTEMS","Score":null,"Total":0}
引用次数: 0
Abstract
Digitalization is widely regarded as a strategic approach to gaining competitive advantage. However, some firms have suffered from the digitalization paradox, meaning that investments in digitalization cannot always achieve the expected performance improvement. This study examines how the digitalization of a firm affects its financial performance and the moderating effect of digitalization proximity between the firm and its supplier. The results suggest an inverted U-shaped relationship between a firm’s digitalization and financial performance. Furthermore, the positive moderating role of digitalization proximity in this nonlinear relationship suggests that alignment with suppliers in digitalization allows a firm to materialize the benefits of digitalization. This study provides evidence of the complex relationship between digitalization and financial performance. It empirically demonstrates the importance of aligning with supply chain partners for digitalization to enhance performance benefits. It also offers practical guidance for managers in navigating the evolving digital landscape.
期刊介绍:
Information & Management is a publication that caters to researchers in the field of information systems as well as managers, professionals, administrators, and senior executives involved in designing, implementing, and managing Information Systems Applications.