Investigating the relationship between digital technologies, supply chain integration and firm resilience in the context of COVID-19.

Abstract

The outbreak of the COVID-19 pandemic has significantly augmented the complexity of information, adding to the challenges that firms face in effectively processing and grasping accurate information. As a result, the production uncertainty of firms has been seriously intensified during the pandemic, disrupting the normal operation of firms and their supply chains. Digital technologies serve as salient tools that help firms to process and analyse information, consequently enhancing firm resilience in the face of supply chain disruptions. This study aims to examine how digital technologies affect firm resilience in the context of COVID-19 through the lens of information processing theory and a large-scale survey conducted among Chinese manufacturers. Specifically, our study evaluates the mediating effect of supply chain integration (internal integration, customer integration and supplier integration) and the moderating effect of information complexity. The results show that supply chain integration plays a mediating role in the effect of digital technologies on firm resilience, and the mediation effect is particularly significant for customer integration. Furthermore, digital technologies have a stronger impact on firm resilience when information complexity is high. The findings advance our understanding and recognition of the resilience implications of digital technologies and provide important managerial implications for improving firm resilience in the context of COVID-19.