Exploring the mitigating role of sustainable innovation in supply chain disruption risks under the digital economy

Abstract

In light of the growing prominence of supply chain disruption risks, it has become increasingly important to examine how the digital economy can mitigate operational risks faced by enterprises. Using data from non-financial A-share listed companies in Shanghai and Shenzhen from 2008 to 2023, this study constructs a firm-level indicator of supply chain disruption risk by deriving from the MD&A text and empirically investigates the impact of urban digital economy development on such risks with fixed effect model. Furthermore, it explores the mediating role of sustainable innovation and the heterogeneous effects across different types of enterprises. The findings reveal that: (1) the digital economy significantly reduces firms’ supply chain disruption risk, with the results remaining robust under various tests; (2) both exploratory and exploitative sustainable innovations serve as significant mediators in the relationship between the digital economy and supply chain disruption risk; (3) the risk-mitigating effects of the digital economy vary depending on ownership structure, financial performance, and industry type, with more pronounced effects observed in non-state-owned, profitable, and manufacturing firms. These findings offer policy-relevant insights into how regional digital infrastructure and innovation policy can enhance supply chain resilience amid global uncertainties.