The Effect of Digital Service Innovation on Strengthening Supply Chain Networks Against Disruptions: A Network Embedding Approach

Abstract

The advent of digital technology has transformed traditional service management approaches and offers new opportunities for the supply chain network to resist these interruptions. However, current research on how digital service innovation directly affects supply chain resilience is limited. This study constructs a theoretical research framework to explore how digital service innovation promotes supply chain resilience in the manufacturing industry, using a network embeddedness perspective. Through extensive survey data, the research demonstrates that digital service innovation enhances resilience by fostering two types of network embeddedness, namely relational and structural embedding, which in turn enhances resistance to interruption. IT support capabilities further reinforce the relationship between digital service innovation and relational embedding and structural embedding, and enhance the overall impact on resilience. This paper is among the first to integrate digital service innovation into supply chain resilience research, unveiling a network embedding approach for enhancing the ability to respond to supply chain network disruptions.