The interplay of digital transformation and collaborative innovation on supply chain ambidexterity

Abstract

This study aims at investigating the impact of digital transformation on the efficiency and adaptability of a supply chain (SC). It also identifies the role of collaborative innovation as a catalyst in these relationships. Survey data from Japanese manufacturing companies was examined using hierarchical multiple regression analysis to test the study's hypotheses. According to the results, collaborative innovation with SC members, that is, suppliers and customers, strengthens the impact of digital transformation on adaptability, but not on efficiency. In contrast, collaborative innovation with market participants, such as competitors and partners, reinforces the positive relationship between digital transformation and efficiency, with no evidence supporting its effect on the innovation-adaptability relationship. These findings encourage firms to widen the scope of their collaborative innovation activities to include different types of partners. For firms with limited abilities to conduct such complex collaboration projects, the findings can assist managers in making well-informed decisions to include partners that accommodate prioritized organizational goals.