Digital innovation in operations and supply chain management: insights from blockchain innovation

Abstract

In the digital era, digital innovation incorporating emerging digital technologies has transformed operations and supply chain management, yet its performance consequences remain debated. As an important form of digital innovation, blockchain innovation requires coordinated adoption among supply chain partners, but its diffusion across buyer–supplier relationships and performance outcomes are still insufficiently understood.

To bridge these research gaps, this thesis aims to construct a research framework to enhance the understanding of digital innovation in operations and supply chain management (OSCM).  Through three empirical studies, this thesis unfolds along a theoretical progression moving from operations management to supply chain management, from general digital innovation to specific blockchain innovation, and from diffusion processes to diffusion outcomes of blockchain innovation within buyer-supplier relationships.

Using longitudinal firm-level data from Chinese listed firms from 2008 to 2019, study 1 integrates the disruptive innovation perspective with dynamic capability theory and identifies a U-shaped relationship between digital innovation and operational efficiency.  While study 1 focuses on within-firm operational outcomes, the value of digital innovation in OSCM often depends on interfirm coordination and the diffusion of innovations across supply chain relationships. Among various types of digital innovation, blockchain innovation demonstrates unique advantages in addressing traditional supply chain pain points and aligns naturally with supply chain management needs. Therefore, using buyer-supplier dyadic panel data from Chinese listed firms from 2007 to 2021, study 2 draws on the relational view and shows the diffusion effect of blockchain innovation from buyers to suppliers. Focusing on diffusion outcomes, study 3 applies paradox theory and finds that buyer blockchain innovation reduces supplier cost efficiency while improving supplier disclosure compliance.

Collectively, these three empirical studies elucidate the relationship between general digital innovation and operational efficiency, and the diffusion process and outcomes of blockchain innovation within the supply chain relationships from buyers to suppliers. This thesis deepens the theoretical understanding of digital and blockchain innovation within the context of OSCM, providing important managerial insights for firms to effectively manage these innovations in the digital era. It also provides policymakers with references to design differentiated digital innovation support policies, promote the diffusion of blockchain innovation across supply chains, and develop comprehensive blockchain industry standards.